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OMGT2085 – Group Report

Group 04 – Team 05

STATEMENT OF AUTHORSHIP

COVER SHEET for SUBMISSION of
INDIVIDUAL/ GROUP ASSIGNMENTS
Course Code:

Course Name:

OMGT2085

Intro to Logistics and Supply Chain Mgt

Assignment Title:
Group Report

Assignment No:
02

Date Due:
20th September 2020

Academic’s Name:
Dr. Reza Akbari
Group 04 – Team 02
Word count: 5432

STUDENT(S)


Family Name

Given Names

Student Number

Tran

Hoang Mai

S3803944

Tang

Nhat Phuong

S3817805

Ho

Le Anh Dinh

S3817796

Le

Quang Duy

S3697123


Tran

Duc Quang

S3777356

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OMGT2085 – Group Report

Group 04 – Team 05

Declaration and Statement of Authorship:
1.

I/we hold a photocopy of this assignment which can be produced if the original is
lost/damaged.

2.

This assignment is my/our original work and no part of it has been copied from any other
student’s work or from any other source except where due acknowledgement is made.

3.

No part of this assignment has been written for me/us by any other person except
where such collaboration has been authorized by the academic/teacher concerned and
as detailed in the assignment.


4.

I/we have not previously submitted this work for any other course/unit.

5.

I give permission for my assignment to be scanned for electronic checking of plagiarism.

6.

I give permission for a copy of my/our marked work to be retained by the Department for
review by external examiners.

I/we understand that
Plagiarism is the presentation of the work, idea or creation of another person as though it is one’s
own. It is

a form of cheating and is a very serious academic offence which may lead to expulsion

from the University. Plagiarized material can be drawn from, and presented in, written, graphic and
visual form, including electronic data, and oral presentations. Plagiarism occurs when the origin of
the material used is not appropriately cited.
Enabling Plagiarism is the act of assisting or allowing another person to plagiarize or to copy one’s
work; this is not acceptable and is also subject to penalty.

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Executive summary:
Wipro Unza was established in Singapore (1980) and officially expanded to Vietnam in 2007, Wipro Unza
Vietnam is a leading supplier and distributor of personal care and home care products in the market. The
company has a large portfolio of 24 brands nationwide, including Wipro Unza's top six brands in the
personal care product category: Enchanteur, Romano, Safi, EverSoft, Dashing, Carrie, and Vital and
together with VIGOR and MAXKLEEN in family care items. As an industry pioneer and occupying a
leading position in the market thanks to its product characteristics researched and developed specifically
for the needs of Asian consumers. The report aims to provide detailed information on the supply chain
management of Wipro Unza cooperation in Vietnam, which helps the readers (Shareholder or Stakeholder)
understand clearly about the company current situation throughout the information structure of financial,
data, and production flow of Wipro Unza on the principal supply chain processes. Also, on utilizing the
methodology of qualitative research methods to point out the supply chain management strategies and the
performance of each department on corporate advantages and bottlenecks to provide possible solutions to
problems.
Regarding the findings, the report identified three main issues that could directly affect a company's supply
chain operations, namely port congestion, outdated ERP supply chain management, and uncertainty about
consumers' demand. Port congestion has arisen due to the rapid growth of cross-border logistics transport
and the complexity of the import process. Furthermore, the uncertain demands associated with the outdated
ERP system that Wipro Unza is adopting in supply chain management, are causing a critical issue for
companies to develop sustainability in the long-term. Without the right solution, these issues can negatively
impact the entire supply chain through higher product management costs and lower levels of customer
service in competition with competitors. Therefore, some recommendations have been suggested to produce
positive results for the problems that Wipro Unza is facing. First, to deal with port congestion, Wipro Unza
can adopt multimodal transport and strategic cooperation to help come up with effective strategies to avoid
risks in the flow of goods. Second, to increase the stability of demand forecast and product approval times,
companies should use Businesses Intelligence (BI) that provides tools to help companies understand their
target market through capabilities of the best access to information available to reduce lead times and
strengthen supplier partnerships to reduce potential uncertainty in the supply chain. Ultimately, the most

important factor that needs to be considered for Wipro Unza to succeed in maintaining its leading position
in the market is the adoption of the new ERP system (Microsoft Dynamics 365 Business Central), as it is
not just about many functions with different integrations business processes aim to improve a company's
supply chain management flows but also simplify work within each division of operations to increase
corporate sustainability.

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Table of Contents
Introduction ................................................................................................................................................. 5
Identify - supply chain aspect/processes selected .................................................................................... 6
1. Three flow description ..................................................................................................................... 6
a. Production flow .............................................................................................................................. 7
b. Financial flow ................................................................................................................................. 7
c. Information flow ............................................................................................................................ 7
2. Major supply chain activities........................................................................................................... 7
a. Demand Management .................................................................................................................... 7
b. Production Planning ....................................................................................................................... 8
c. Inventory Management .................................................................................................................. 9
d. Warehousing ................................................................................................................................ 10
e. Order fulfillment .......................................................................................................................... 11
Discussion .................................................................................................................................................. 12
1. Discussion A ................................................................................................................................... 12
a. The core competence of the supply chain ...................................................................................... 12
b. Supply chain network characteristics............................................................................................. 12

c. Relationship between supplier and buyer ...................................................................................... 13
d. The recent technological changes/disruptions ............................................................................... 14
2. Discussion B ................................................................................................................................... 15
a. Impact of demand uncertainty ....................................................................................................... 15
b. Impact of Port Congestions: Delay Wipro Unza supply chain ...................................................... 16
c. Impact of Outdated ERP system management: Lack of high competition .................................... 18
Conclusion ................................................................................................................................................. 20
Summary of Teamwork ............................................................................................................................ 21
References .................................................................................................................................................. 23
Appendix .................................................................................................................................................... 33

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Introduction:
Wipro Consumer Care & Lighting, which belongs to Wipro Enterprise, was founded in 1945, specializing
in providing consumer care products. Through many years of development, the company has grown rapidly
and become one of the fastest developing FMCG companies in India. The firm is currently operating in 18
different countries with 15 manufacturing units (Wipro Unza Vietnam n.d.). Officially entered the Vietnam
market in 2007 with the acquisition of many local companies, Wipro Unza has considered Vietnam as a
strategic location and invested heavily in the company's development in Vietnam with one factory and three
offices were built, along with three main distribution channels which are MT, GT and E-commerce. As a
result, the company accounted for 14% of total Wipro’s group revenue in 2017 (Wipro Unza 2020). Wipro
Consumer Care Vietnam’s vision is to become a leader among international FMCG companies. On the one
hand, they aspire to become a place where employees can realize their potential to thrive and be creative.
Additionally, they want to create products that can inspire and support the daily life of Vietnamese people

(Wipro Unza Vietnam n.d.). The-business-activities-associated-with-strategic-and-specific-vision-has
helped Wipro Consumer Care Vietnam accomplish remarkable achievements in the Vietnamese market as
they are rewarded to be the best company to work for in Asian and become the best employees choice by
student in 2020. Moreover, the company ranked among the top 3 of personal care FMCG firms in 2012.
Some well-known brands from Wipro Unza can be mentioned are-Enchanteur, Romano, Izzi, etc. As shared
by Mr. Sanjay, the biggest challenge for Wipro Unza in the current situation of Covid-19 is how to keep
people safe and keep the business operating (Wipro Unza 2020).

As the Covid-19 pandemic is complicatedly happening in Vietnam and all over the world, raising consumer
awareness of hygiene has led to an increasing demand for body wash and shower gel products (Euromonitor
2020). Since Wipro Consumer Care Vietnam offers a wide range of shower gel for customers, the-product
that-stands-out-the-most-is-Enchanteur-as-it-offers-a-wide-range-of-scents-with-the-combination-of
perfumes for customers to choose from. In 2019, Wipro Unza was in the top 2 in terms of company share
of bath and shower, accounting for 11% (Appendix 1). Specifically, its Enchanteur product takes over 6.9%
of brand share (Appendix 2) (Euromonitor 2020). The economic uncertainty and changing demands in
essential everyday necessities pose both challenges and opportunities to the supply chain of Wipro Unza
Vietnam, especially Enchanteur. It is really important for Wipro to rigorously invest in minimizing the
demand forecast error as well as carefully planning for the inventory given that the demand is unstable and
keeps changing over time. Since Enchanteur is a FMCG, products always need to be available at stock, this
requires Wipro to focus more on the demand and inventory management of Enchanteur.

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This report will further discuss the impact of different supply chain activities on the Wipro’s business
operation as well as analyze the core competence, supply chain network system, relationship and

technology currently used by Wipro with a focus on Enchanteur product. Additionally, some challenges
and difficulties that the supply chain of Wipro Unza are currently facing will be evaluated and
recommendations will also be provided for improvement in the future.

Identify - supply chain aspect/processes selected

Figure 1: Supply Chain Network of Enchanteur product

1. Three flow descriptions:
a. Production flow
Production flow of Wipro Unza is the combination of Enchanteur’s product movements, started when the
raw materials are sourced from different tiers of suppliers until the product is received by the end customers.
After the raw materials are transported to Wipro Unza's factory in Binh Duong, they are checked for quality
before being put into production. The commodity then will be delivered to warehouses located at Binh
Duong and Bac Ninh provinces with the objective of serving customers in different geographic locations
quickly while minimizing transportation costs. The Enchanteur product will then be distributed and
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supplied to supermarkets, retailers, e-commerce channels for later purchased by consumers. Moreover,
product flow also has the reverse direction as defective products can be returned back to warehouse by
customers, where it will be checked, modified or destructed for the aim of improving customer service

b.

Financial flow


In terms of the financial aspect of SCM, two perspectives need to be taken into account are cost, investment
and flow of fund (Bsaikrishna 2016). Costs and investments rise as the supply chain enlarges (Oleghe 2019).
Therefore, the management of financial flows in supply chains offers great opportunities and challenges
(Luo 2013) and it has a significant impact on the company's cash flow status and profitability (Xu et al.
2016). The financial flow goes from Wipro Unza to suppliers and from customers back to the company. As
the company needs to pay suppliers upfront for raw materials and receive revenue back only after their
distribution partners have made a sale to customers. The challenge for Wipro Unza is how to balance
between the receivable and payable accounts to effectively manage their financial capital.

c. Information flow
The administration of the supply chain requires a lot of different information, product data or delivery status
(Madenas et al. 2014). Such information systems play a pivotal role in data and information management
and integration into the supply chain as the supply chain information flows are bidirectional (Yousefi &
Alibabaei 2015). Since information flow has the ability to encourage cooperation and improvement across
the supply chain (Madenas et al. 2014), it has become a crucial part of Wipro Unza's SCM process as the
company adopts the S&OP model in their process of planning and forecasting. Wipro Unza’s information
flow moves from customers through manufacturers to the suppliers. The company collects consumers’ data
to generate the demand forecast and production plan. They also have a team to receive feedback from its
consumer to make timely adjustments related to production and planning, hence, improving product quality
and customer service.

2. Major supply chain activities:
a. Demand Management:
Demand management was one of the preliminary processes of supply chain management (Baltacioglu et al.
2007) that was defined as the ability to balance the requirements of customers with the business’s supply
capabilities (Rexhausena, Pibernik, Kaiser 2012). It involved not only forecasting demand but also planning,
communicating, and synchronizing demand with other departments within the supply chain (Croxton et al.
2002). Indeed, companies need to have good demand management processes that can positively affect the
overall supply chain performance (Rexhausena, Pibernik & Kaiser 2012) as proper demand forecasting can

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reduce the bullwhip effect, total supply chain costs, and improve service levels (Jaipuria & Mahapatra
2014).

As presented by guest speakers of Wipro Unza, their consumer goods products are make-to-stock that are
mainly based on forecasting (Wipro Unza 2020). Hence, it is very crucial for Wipro Unza to have a proper
demand forecasting that can allow companies to have large scale productions and avoid opportunity loss
due to stock-outs. Although most of the customer-driven variabilities are unavoidable, it is an important
role in the demand management process to reduce demand fluctuation (Croxton et al. 2002). Recently,
Wipro Unza needs to consider some factors that can affect their forecastings such as competition (as there
are many major competitors in Vietnam like Unilever and Masan Consumer that also provide personal care
products like Enchanteur) and the COVID-19 pandemic. Moreover, any risks that occur can easily affect
and disrupt the matching of supply and demand (Dittfeld, Scholten & Donk 2020). Indeed, Wipro Unza
also implemented the Sales and operations planning (S&OP) process that involved their Sales and
Marketing teams into forecasting processes, hence, they can effectively assess and manage risks. As S&OP
is potentially implemented as a risk-treatment tool (Tuomikangas and Kaipia 2014), it can help businesses
not only proactively but also reactively manage risks that can increase customer service levels (Dittfeld,
Scholten & Donk 2020). Lastly, based on some main KPIs including MAPE, MAE, and RMSE (Vandeput
2018), Wipro Unza can measure the accuracy and error of forecasting in order to assess and improve their
processes.

b. Production Planning:
Production planning is a process that involves deciding in advance what will be produced and how to be
produced, which is a key process in Wipro Unza when competing with competitors. Based on the research

of De Sampaio (2017), it provides businesses with up-to-date information on-demand estimates and
production capacity on available resources throughout planning periods to maintain production plans
effectively without difficulty. There are five production planning steps: Predictive Planning, Determining
Potential Products, Optimal Product Selection, Operational Self-Assessment, and Adjustment. Besides, the
Corresponding steps above gives managers the ability to aggregate data from previous year data to capture
customer needs, thereby predicting buyers' needs, capture production quantity to meet demand, and avoid
financial risks such as inventory and storage fees. Moreover, this approach is one of the most important
steps that can help a company's manager to differentiate and outperform other competitors. Additionally,
based on Townsend & Baker's (2014) research, a leading company is always a differentiator in the product
segment while being able to meet customer needs and surpass knots. Moreover, it not only supports
managers to decide on the most suitable outcomes to ensure the company goes through a complex
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manufacturing process without wasting resources (Gerdes 2017) but also assists managers of production
planning management can self-evaluate the execution of the production chain, which to examine product
functionality and capabilities to avoid the risk of discrediting Wipro Unza (Fayezi & Zutshi & Loughlin
2017).

Furthermore, as mentioned by guest speakers of Wipro Unza, their new product lines are based on the BDM
meeting in the projects developing production process for pre-launching (Wipro Unza 2020). Therefore,
there are some necessary methods in the KPIs model such as Expected Production Time vs. Actual Time,
Expected Production Cost vs. Actual Cost, and Planned Material Consumption vs. Real consumption which
gives production planning managers the ability to optimize their production processes strategies with
reduced time and resources required to create the most competent products for the end consumer and earn
more profits for the Wipro Unza sustainable development in the future (Kaganski & Eerme & Tungel 2019).


c. Inventory Management
Inventory management is the process of manipulating the availability of stocks or items including current
sales and new products, MRO, work in process goods that used to support the company operations and
customer service (Shenoy & Rosas 2018). Inventory is considered to be the backbone for a smooth
operation of other supply chain activities. (Wild 2017). To effectively manage the inventory, companies
need to implement an inventory management system, which informs the manager about the quality, quantity
of available stocks and their movement, helping them to locate exactly the inventory’s position when
needed (Ala‐Risku et al. 2010). This system will make it easier for the manager to decide as when to
purchase new inventory while knowing exactly the quantity of stocks left. This will help the company avoid
unfavorable situations like running out of stock or interrupt the production process, and also reduce the cost
of carrying inventory (Ogbo & Ukpere 2014). As a result, customer-service-will-be-improved-leading-tohigher satisfaction.

Inventory-tracking-is-important-to-Wipro-Unza-as-it-involves-all-four-steps-of-production-Since
Enchanteur is a FMCG product and frequently purchased by customers, the first priority is to ensure stock
availability to meet the needs of customers. Wipro Unza uses the made-to-stock product operation, they
have a special system called MRP SAP that allows distributors to place orders based on stock availability
(Wipro Unza 2020).

Additionally, carefully evaluating suppliers is also a key factor in efficient inventory management. It is
believed that quality, delivery, performance history and prices are the most important criteria commonly
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used by companies to select suppliers. As suppliers have a huge impact on the inventory management
process, firms must source materials from suppliers best suited to the company's objectives (Chen 2011).

Besides, businesses should maintain a long-term relationship with suppliers to be able to communicate,
dealing with problems or concerns effectively (Soh et al. 2016). Sustainable supplier evaluation will enable
the company to smoothly operate the inventory, ensure product quality, availability and price stabilization
in the market, reduce-lead-time, which will enhance business performance and improve customer services
(Luthra et al. 2017). Additionally, some KPI such as the inventory turnover rate and total inventory cost
should be set out and serve as a benchmark for better evaluating the performance of inventory managers.
(Wang et al. 2011)

Since-Wipro-Unza-have-their-own manufacturer factory in Vietnam, they mostly sourced the materials
from local suppliers. They always try to engage their suppliers into the integrated and collaborate supply
chain and share information with each other, together building a win-win relationship (Wipro Unza 2020).

d. Warehousing
Warehousing is an integral part of logistics and supply chain management that is defined as a crucial
component of the supply chain with the ability of facilitating the movement of goods through the supply
chain to the end customer (Rushton et al. 2014). The main warehouse activities include receiving, put away,
storage, picking, packing and shipping. Each of the activities has their own functions that contributed to
overall warehouse performance (Richard 2018). Indeed, the companies need to ensure an efficient
warehouse that can affect the whole logistic system since a good warehouse performance can enhance
quality performance, delivery time, and customer satisfaction; and reduce the logistic cost for the company
(Marco & Mangano 2011).

As presented by the guest speaker of Wipro Unza company, SAP helped Wipro Unza to design warehouse
structure as dividing it into four main storage locations for each stock level to ensure the product quality
and manage the stock level easily (Wipro Unza 2020). Moreover, Wipro Unza implemented a new
information system such as Warehouse Management System (WMS) and barcode scanner technology to
operate the warehouse activities and efficiently manage inventory. It is crucial for Wipro Unza to implement
the WMs since it can allow the company to manage the inventories and avoid the stock out by providing
the real-time stock traceability, accurate recorded information on stock and improving the customer service
level (Richards 2018). Besides, stock keeping unit (SKUs) is a crucial inventory measurement in warehouse

operation of Wipro Unza since any failure in tracking inventory can affect the smooth operation and lead
to an increase in stock-outs (Avlijas et al. 2015). Therefore, Wipro Unza also implemented the Barcode
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Scanner technology that can help the company to handle the stock level and avoid the risk of stock-outs.
As the barcode scanner is implemented as a tracking inventory tool by scanning the SKU label, it allows
the Wipro Unza to handle the movement and sort products into various bin locations or high rack (Pak et
al. 2019). Besides, there are some most important KPIs on each activity that can be used for warehouse
performance evaluation such as receiving productivity, put away cycle time, space utilization, order picking
cycle time and shipping productivity (Kusrini, Novendri & Helia 2018), it is necessary to identify the KPIs
in order to help the warehouse manager measure and evaluate the warehouse activity performance
efficiently

e. Order fulfillment
It is the process defining the approach, the partnership to be established and the degree of quality and
effectiveness to be set up to achieve sustainable competitive advantages in a robust delivery network (F.
Espino-Rodríguez & Rodríguez-Díaz 2014). There are six types of order fulfillment in supply chain
management for a firm to conduct, consisting of Integrated fulfillment, Dedicated fulfillment, Outsourced
fulfillment, Drop-shipped fulfillment, Store fulfillment and Flow-through fulfillment. Order management
consists of monitoring and controlling the processes that are necessary to execute orders entering a retail
company. Everything from the moment they are requested, to shipping, to after-sales experience and any
related returns are covered (Glover 2019). The company might make a decision to follow a strategy based
on some elements such as its business size, order volume, location and so on; and the reliability of strategies
to minimize the detrimental impacts of complexity, for example modularity, integration, late setup and
choice bundling, relies on the company's order fulfillment approaches (Pil & Holweg 2004). Thus, it can

be seen that Wipro Unza opt for Store fulfillment. To be more specific, in Vietnam, Wipro Unza has a Mega
Distribution Center located in Vietnam-Singapore Industrial Park, Binh Duong Province. From this,
products are sold to a large number of retail outlets, comprising hypermarkets, supermarkets, department
stores, mini markets, general provision shops, convenience stores, pharmacies (Wipro n.d.). After that,
customers can purchase items via online or offline channels through these retail stores, putting Wipro at a
competitive advantage compared to other companies who just opt for traditional channels (Binder 2014).
There are some KPIs for order fulfillment, including orders received on time, orders received complete,
orders received without damage, orders filled accurately, orders billed accurately. Achieving these criterias
enables Wipro to increase customer satisfaction which contributes to company’s profitability as satisfaction
of consumers leads to frequent sales, brand loyalty, and encouraging words (Pooser & Browne 2018).

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Discussion
1. Discussion A
a. The core competence of the supply chain
A supply chain is a network between an organization and its vendors that includes a variety of activities in
order to reach the customer with a product or service. The processes include refining and manufacturing of
raw materials into final goods, the distribution of these items and their supply to end users (Triplett
2017). The key expertise and competence of the supply chain are known to be the incorporation of
coordinating tasks which; therefore, plays a pivotal role in the success of companies (Derwik & Hellström
2017). As for Wipro Unza, the fundamental expertise of its business model is focused on the ability to
achieve high quality, productive supply and superior distributors to fulfill the demands of the consumers.
The business takes care of the sourcing process on the basis of guest speakers to boost the capacity to give
consumers greater value. In particular, Wipro Unza consistently aims to enhance its manufacturing

sustainability efficiency to protect the environment and fulfill consumer needs, exploiting its experience in
sustainable home healthcare goods. Thus, Wipro Unza focuses extensively on effective supply chain
management for its customers including innovative, sustainable home care goods worldwide. On top of that,
distribution is also worth mentioning for the core competence of Wipro Unza. Moving on to the details, in
the distribution process, the organization enjoys its strategic relationship with 3PLs. Through partnering
with 3PLs, the business will lower the delivery burden and concentrate on providing better product and
efficiency for customers. To sum up, it can be concluded that the core competence of the supply chain for
Wipro Unza is to focus on their ability to procure high quality raw materials, have an effective production
as well as offer competitive service that satisfies the requirements of customers.

b. Supply chain network characteristics
About the push-based strategy, production is initiated based on the long-term demand forecast (JanvierJames 2012). At the end of the supply chain, assembled products are available for customers to purchase
them on the shelves. Hence, applying a push-based system enables firms to generate mass production,
increase productivity, and lower costs (Zheng & Lu 2009). However, with the push strategy, companies
need to carry high inventory levels and take longer times to respond to demand variations. Hence, if any
inaccuracy occurred in their long-term demand forecasting, they would easily face a bullwhip effect and
reduce service levels (Nag, Han & Yao 2014).

Within the pull system, actual customer orders will pull materials into the supply chain that customers are
willing to wait for receiving the finished products (Sarbjit 2017). Businesses can be beneficial from pullbased systems that can reduce lead times, enhance high service levels, and react faster to demand fluctuation
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(Mazahir, Lassagne & Kerbache 2011). Especially, different from push-based systems, pull strategies also
allow companies to avoid carrying inventory cost. However, it is difficult for businesses to leverage and
take advantage of economies of scale as the pull system did not have long-term plans (Ahn & Kaminsky

2005) that might lead to higher costs in the supply chain (Mazahir, Lassagne & Kerbache 2011).

As presented above, Wipro Unza indicated that their products are mainly focusing on economies of scale
and applied the make-to-stock production strategies. Indeed, they are mostly based on demand forecasting
for determining their inventory levels and making production decisions. They also did not provide
customized options on Enchanteur products that they finished assembling them before transporting to their
distributors. Since Wipro Unza is one of the top consumer goods companies in Vietnam and Enchanteur is
an FMCG product that usually has a high and stable demand, they need to make sure their products always
have enough inventory for meeting customers’ demands. Thus, Wipro Unza cannot wait for receiving actual
orders from customers to initially assemble and deliver products. Because of that, it is reasonable to state
that they are applying the push system for the mass production of their Enchanteur products. Hence, they
can ensure that they have enough product availability to satisfy customers’ demands and avoid opportunity
loss due to stock-out. Moreover, due to economies of scale, Wipro Unza can improve productivity and save
production costs. However, if there are fluctuating demands occurred or any errors in their forecasting, it
will negatively affect stocks of Wipro Unza and they might face a bullwhip effect, increasing their total
supply chain costs and reducing service levels. As push-based systems require companies to carry lots of
inventory, they also have to deal with high inventory costs.

c. Relationship between supplier and buyer
Findings helped to clarify the application of the partnership incorporation by suppliers in respect of
decisions trade-offs included in the creation of contracts. The results have also demonstrated that
partnership convergence is dramatically necessary and impacts mobility in the supply chain as well as
improving flexibility (Fayezi & Zomorrodi 2015). Because of this reason, the connection between supplier
and Wipro Unza is already present and may be complicated as both supplier and Wipro Unza want to
optimize their money, time and cash investment. There are 2 types of supply chain relationships, vertical
and horizontal relationships. To begin with, vertical integration applies to movements of various chain
layers such as retailers, distributors, manufacturers and parts and material suppliers. A case in point is that
Wipro Unza enters collaboration with 3PLs, considered as an external supplier conducting all or part of the
logistics functions of an organization (RMIT University 2017), for acquiring raw materials and shipping.
Through dealing with different 3PLs, the company purchases the raw material in multiple places. This

would allow a company to quickly purchase bulk since 3PLs could have more connections with vendors as
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compared with Wipro Unza. 3PLs will also offer swift and timely goods to suit the amount of online and
offline market requirements (Rodrigues et al. 2018). Besides, in case there is a disparity in the price of raw
materials between different suppliers, that fact that Wipro Unza does not have a single company's
commitment can be conducive to its overall costs as the firm can opt for the ‘optimum’ price. Taking
horizontal relationships into consideration, it is to comply with the company arrangement in the logistics
process (Martin et al. 2018). A joint venture, Wipro Airport IT Services Ltd, was signed in October 2009,
with the international airports Delhi Pvt Ltd (Business Standard n.d.). The benefits of horizontal integration
are economies of scale, greater competition, greater pricing strength and the potential to penetrate new
opportunities as well as more characteristics that differentiate them from their rivals (Moatti et al. 2015).

d. The recent technological changes/disruptions
Radio-frequency identification (RFID) - the application of Internet of Things
As presented by guest speakers of Wipro Unza, they are recently using barcode scanner technology in order
to help them with inventory control (Wipro Unza 2020). Although this technology might still be working
well, Wipro Unza should be concerned about changing to RFID technology that can potentially improve
their supply chain to be more efficient. RFID is one of the key applications of the Internet of Things which
is implemented widely in WMs (Lee et al. 2018). It is an automatic technology that enables businesses to
identify and manage objects through two main parts including electronic tags and readers (Wang et al. 2013,
figure 2). With this system, companies can scan and read multiple tags at the same time which is faster than
barcodes as they need to scan each tag individually (Qian et al. 2012). As indicated above, Wipro Unza has
high inventory levels that changing to RFID can help them save a large amount of time and satisfy
customers’ demand faster. Moreover, businesses can store more data with the RFID tag than using the

traditional barcode (Lee & Lee 2015). Unlike barcodes with human involvement, RFID has more consistent
results of inventory records, improved product traceability, and inventory visibility (Cakici, Groenevelt &
Seidmann 2011). Hence, adopting RFID can improve inventory flows, reduce out-of-stock problems, and
avoid the bullwhip effect (Sarac, Absi & Dauzère-Pérès 2010) which is very critical to Enchanteur products
of Wipro Unza. Because if any stock-out or excessive inventory occurred, it will generate loss and reduce
service levels.

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Figure 2: Wang et al.’s (2013) Working principle of RFID

2. Discussion B:
a. Impact of demand uncertainty
Identification of issue:
As one of the leaders in the personal care manufacturer (Wipro Unza 2020), Wipro Unza is also directly
impacted by the fluctuating trend in the personal care industry, which has continuously changed due to
higher incomes, lifestyle change and consumer preferences (Alexandra & Miroslaw 2013). Moreover,
Wipro Unza company depends much on overseas suppliers for materials (Wipro Unza 2020) whereas most
ports were delayed by various regulations, which make high lead time in shipping. In addition, the consumer
behavior now has been extremely fluctuating due to the global impact of Covid 19 on the economy. While
Wipro Unza commits the forecast, error is 35% in demand forecasting (Wipro unza 2020), it indicates the
less efficiency in forecasting consumer demand method. Hence, it will be extremely hard for the company
to forecast and fulfill the customer’s order, resulting in time consuming reordering.

Influence on Wipro Unza:

In the context of the Wipro Unza company, the continuous variation in consumer demand will directly
affect the pricing and inventory decisions of the company. The demand variability is likely to trigger
company forecast errors, which will have a negative effect on stocking levels (Beutel & Minner 2012).
Since Wipro Unza company has a high inventory level, they have to pay additional holding costs for the
unused raw materials and products that have to be disposed of ( Shen & Li 2016) or if the company decided
to sell at lower prices, the profit would be decreased or losses. Moreover, the demand variability also affect
order management of Wipro Unza as the company is uncertain about the product specification or mix that
customers will order, resulting in the frequently revised orders (Angkiriwang, Pujawan & Santosa 2014).
In addition, demand uncertainty also leads to poor customer service levels due to unavailability of stock,
resulting in the company’s loss of customer satisfaction and making a drop in sale of the company (Oeser
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2015). For example, Wipro Unza’s gross profit as a percentage of our total revenue decreased by 0.8%
when sale decreased from 7.6% to 7.0% in 2020 (Wipro Unza 2020).

Recommendation:
To deal with this issue, Wipro Unza can reduce the probability of demand uncertainty by reducing the lead
time. According to Mou, Cheng & Liao (2017), reduction of lead time can cut the reorder point, reduce the
loss caused by stock-out and safety stock, which create flexibility for the supply chain. Therefore, Wipro
Unza can avoid the demand uncertainty with reduction of lead time. Moreover, a good method for
preventing demand-uncertainty-is-investing-in-forecast-accuracy. To-do-that, Business Intelligence (BI) is
suggested as a proper method for Wipro Unza since it provides tools to help the company have a clear
understanding of the targeted market through having the best access to the available information (Lim,
Hsinchun & Chen 2018). With the support of BI, Wipro Unza company can have reported on customer
behavior through historical data gathering from the various sources such as social chatting media or market

trend reports (Audzeyeva & Hudson 2017). Based-on-those gathered data, BI will compare existing
business processes and efficiency metrics with historical performance, which allows the company to
quickly identify the change occurred in the market (Munoz 2018). Hence, adopting the BI can improve data
quality, identify the market trends and provide an analysis of the company’s business operation
(Schlegelmilch & Albanese 2014), which is very crucial for Wipro Unza to identify the current market
demand and provide the possible plan action to take. In addition, company should also share information
and build cooperative relationship with suppliers as it can bring good adaptation abilities while working
between supplier and firms, which reduce the potential of uncertainty in supply chain (Xie, Peng & Zhao
2012).

b. Impact of Port Congestions: Delay Wipro Unza supply chain
Identification of issue:
There are two main reasons for port congestion that should be mentioned here are the low standard
infrastructure and complexity of import procedure regulations

The first reason is low standard infrastructure as much of the seaports infrastructure in Vietnam has been
built by government-owned companies that are not experts in handling transportation infrastructure.
Therefore, it leads to the failure in forecasting and balancing between supply and demand in container
handling (Blancas et al. 2014). As a result, the port is unable to handle the flow of containers as well as
transportation means and prevent the incident. Taking Cat Lai port as an example, it was estimated that Cat
Lai faced the risk of overstepping capacity with almost 3000 containers of goods left waiting for clearance,
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causing severe congestion (Saigon Times 2019). Therefore, it is necessary to improve the port infrastructure
for the increasing number of containers.


The second reason is the long-lasting and complex import process. According to Gupta et al. (2011), the
complex import regulations-occurs-when-a-country-tries-to defend their market by imposing quotas and
tariffs, causing barriers to logistic service. More specifically, some complex import import regulations such
as large amounts of documentation requirements, contradictory regulation and inefficient inbound clearance
process contributed to less free trade between nations. For instance: Thai customs authorities usually require
a large number of documents, though often repeated; Myanmar takes at least three weeks to complete the
export or import license. These complex regulations require more time consuming in customs clearance,
causing extreme delay in supply chain (Cho & Kurtz et al 2017).

Impact on Wipro Unza supply chain:
The port congestion can have some negative impact on the Wipro Unza. Initially, as goods are kept in the
port for examination, the company will have to pay a high cost for warehouse storage as well as the high
transportation cost (Loh & Thai 2015). Moreover, Wipro Unza company depends much on the overseas
supplier for raw material (Wipro Unza 2020), the port congestion will prevent the Wipro Unza from taking
the raw for production process, resulting in the lack of product for customer's order. Additionally, as
Vietnam customs procedure for import usually take at least three weeks to approve, customer have to suffer
a long waiting time, which could make them seek for alternative manufacturer and result in the company’s
loss of customer’s loyalty (Bielen & Demoulin 2007).

Recommendation:
Dealing with this issue has not been easy as the port congestion is an external factor and out of control of
Wipro Unza company. Hence, it is suggested that the company should make a strategic cooperation with
other local or foreign companies to improve the logistic service. According to Nam (2019), the strategic
cooperation between the enterprises is required in order to facilitate the sharing of information on the cargo
handling activities of ports, transport means of receiving goods to prevent congestion at ports and to
promote modern multimodal transport infrastructure planning. With this strategic cooperation, Wipro Unza
company will be able to gain experience from other companies about the port handling procedure, avoid
port congestion and implement multimodal transportation infrastructure. Based on Shepherd et al. (2011),
the multimodal transportation infrastructure allows companies to have direct links to major trading partners,

efficiently handle the long-distance cargo delivery and reduce the cost. For Wipro Unza company, the

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Group 04 – Team 05

multimodal transportation infrastructure enables companies to lower warehouse cost by avoiding the port
congestion, delivery long-distance cargo more efficiently.

c.

Impact of Outdated ERP system management: Lack of high competition

Identification of issue:
As a market leader in the distribution of healthcare products in the Vietnam market, it is extremely critical
for Wipro Unza company to immediately respond to customer demand to ensure a high level of customer
service, however, it is challenging to achieve due to unexpected consumer demand. Besides, based on
research by Su & Yang (2010), it shows that to solve the obstacles on satisfying consumer demand,
enterprises must have an ERP system in the software application, as it consists of various integrated
software modules that help companies to manage resources more efficiently on integrating different
business processes and functions such as purchasing, order fulfillment management, and streamlining
workflow. Consequently, not only providing businesses a digital backbone to promptly respond to suppliers
and customers immediately without congestion but also facilitates integration both internal and external of
the business.

Furthermore, in the Wipro Unza's guest speaker, the interviewer appeared not discussing the updating data
about the ERP system in their supply chain management and showed that there are essential flaws in the

demand forecasting system when its accuracy only reached 35% (Wipro Unza 2020). Therefore, leading to
a requisite difficulty for large companies like Wipro Unza on the verse of losing the competitive advantage
in the market when competing with competitors on the road of satisfaction suppliers and consumers.

Influence on Wipro Unza:
There-is-a-high-probability-that-the-company-is-utilizing-an-outdated-ERP-system-in-the-supply

chain-

management-as-mentioned-above (Wipro Unza 2020), leading-to-disadvantages-in-competing-withcompetitors-in-the-same-industry.

Firstly,

the-ERP-system-involves-manual-processes-and-complex-

corporate-documentation-such-as-a-request-for-quotes-and-orders, however, due-to-the-outdated-systemcan-cause-Wipro-Unza-grappling-to-handle-a-large-quantity-of-stock-keeping-units-and-slowing-downthe-order-fulfillment-process (Mohammed Rezaul 2012). Second, it not only slows down the company's
order processing and inventory management accuracy but also affects order approval time due to mismatch
between the warehouse management system and accounting system. Moreover, causing the lack of system
integration in poor material management, as well as incoherent workflow and tracking system disruption,
reduce problem-solving and supply chain visibility (Christofi & Nunes & Peng & Lin 2013). As a result, it

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Group 04 – Team 05

has severely affected the entire supply chain operations of the company in maintaining the leading position
in the market and the reputation of the company brand in the eyes of consumers.


Recommendation:
Wipro Unza can hardly eliminate the effect of obsolete ERP systems on the supply chain. Nevertheless, the
company can still minimize or even eradicate the adverse effects of the outdated system discussed earlier.
Hence, we recommend Wipro Unza to implement the new ERP system, Microsoft Dynamics 365 Business
Central, as it has a variety of functions with different integrated business processes providing for more
automation, single order customization, and streamline supply chain management flows. Moreover, as it
provides managers or executives with direct access to existing business information strategies without the
requirement for a middleman and deducting data to be bestowed more easily among chief decision-makers
within the company so that productivity can be optimized (Joesoftware 2020).

More specifically, the new ERP system will first affect the market control of Wipro Unza, such as defining
distinct directions with data about existing customers and collected profiles of potential customers, which
help the administrator on the correct source for the subsequent direction of the business on predicting the
financial and profitability (Lugonja 2018). Moreover, boosting Wipro Unza in innovative design as well as
technical improvement to be renewed more automatically with breakthrough solutions and accurately
forecast the impact of specific products to utilize and distribute the data warehouse solutions with integrated
needs-matching capabilities (Da Conceiỗóo Menezes 2010).

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Group 04 – Team 05

Conclusion
In conclusion, it is clear that supply chain management plays an important role in the success of Wipro
Unza. Indeed, through the diagram of supply chain networks of Enchanteur products, it presents the
complexibility of their supply chain that it is very essential to Wipro Unza to well organize and manage

their processes from finding essential suppliers to delivering products to the final customers. Moreover, the
report describes detailed three product flows as well as provides a comprehensive view of five main selected
logistics processes which are Demand Management, Production Planning, Inventory Management,
Warehouse Management, and lastly Order Fulfillment. Through each activity, the report will explain the
process and how Wipro Unza managed it in their supply chain as well as values that they can gain from.
The second part of the report is-analyzing-some-key-components that are related to and potentially impact
the supply chain of Wipro Unza. It Initially mentioned the core competence of the supply chain including
procuring high quality raw materials, having an effective production and offering competitive service. After
that, the report also discussed push-based systems that Wipro Unza is currently adopting in their supply
chain network as well as their advantages and disadvantages. Moreover, the existing relationship between
suppliers and buyers is analyzed; thereby linking with Wipro with a view to enabling readers to get a deeper
insight into these theories. Lastly, the report indicates how Wipro Unza can be positively affected if they
decide to apply RFID in their supply chain. Moving on to the next part, the report analyse several issues
faced by Wipro Unza, consisting of the Covid-19 pandemic, Port delays and outdated system management,
followed by the impacts on Wipro Unza; thereby making some specific recommendations for Wipro Unza
to overcome these obstacles.

There are several useful lessons that our group can learn in the course and can be applied in the reality. First
of all, in terms of 3 flows of information, finance and products, the report has analyzed carefully these flows
for Wipro Unza to help we get a deeper insight into what these flows are as well as it is of paramount
importance for the success of the company. On top of that, technology is an indispensable aspect of every
single domain, particularly RFID. The report enables us to know the function of RFID and how it is applied
for Wipro Unza, showing advantages that can boost the efficiency of the company. However, the fee for
this advanced technology is costly so this should be applied just by huge companies. Besides, there are
some limitations that we had to deal with while researching for the report. There was lack of real-time
information as well as data of Wipro Unza company that most of information took for our research are
based on the Guest Speaker of the company and from qualitative researches. Moreover, there are some
documents which are not public, hence, it is hard for we to find more specific information and do research.
Lastly, their supply chain has many activities, but we only had chance for analyzing five main activities of
Wipro Unza.

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Group 04 – Team 05

Summary of teamwork:
Team
member’s
name

What was your commitment to the group
project?

Approximate
actual level of
contribution

Team

member’s

signature

Explain the role of the demand management
process in Wipro Unza’s supply chain.
Discussion A:



Analyze which system that Wipro
Unza use in the Supply chain

Tang Nhat
Phuong

network.


Discuss

about

technological

20%

changes/disruptions.
Conclusion: Summarize description of three
supply chain flows, five main selected
activities, two main points of discussion A
(core competence, supply chain in use and
existing relationship)
Introduction: Provide information about the
company and Enchanteur product. State the

Tran

objectives of this report.


Hoang

Supply chain network: develop supply chain

Mai

network of Enchanteur and describe 3 main

20%

flows.
Explain the inventory activity.
Explain the role of order fulfillment in the
supply chain. From that, I link with Wipro
Ho Le Anh
Dinh

Unza to help readers have a deeper
understanding of order fulfillment in

20%

practice. Besides, I did discussion A,
reflecting core competency of supply chain
and analyse whether there is any existing

21


OMGT2085 – Group Report


Group 04 – Team 05

relationship between supplier and buyer;
thereby taking Wipro as an example to
show. Lastly, I aslo contributed to the
conclusion.

Executive summary: provide summarised
information of the Wipro Unza on the
company background, goals, problems, and
recommendations for the readers to have a
more

extensive

understanding

of

the

company.
Le Quang
Duy

Explain the role of production planning in the
supply chain management of Wipro Unza, to

20%


help understand clearly about the functions of
production planning.
Discussion B:


Impact of outdated ERP management
systems of Wipro Unza on the
competitive advantage in the Vietnam
market.

Explain the role of warehousing in the supply
chain to help clearly understanding about
role and function of warehousing.
Tran Duc Discussion B:
Quang

Impact of demand uncertaity on Wipro Unza

20%

supply chain
Impact of port congestion on Wipro Unza
supply chain

22


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Group 04 – Team 05

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