Case: How Kimberley-Clark Keeps Client Costco

in DiapersSupply Chain Management

Presented By,Sumeet S. Neeraj+917842888751GITAM School of IBVisakhapatnam

*Distribution based Strategic Alliance

*Kimberly uses VMI (Vendor Managed Inventory)

*Mutual benefits (Retailer Supplier Partnership)

*Kimberly Clark (1) Cost savings in SC

(2) Huggies more popular than Pampers

*Costco (1) Saves money on staffing in inventory dept.

(2) Saves money on storage.

*Strategic Alliance

Downsi

d

es

*Question 1

Why VMI?

*Rare Stock-outs

*Curb Bullwhip

*High Service Levels

*Responsibility, Shared Risk

*Reduced Managerial Expense

*Higher compliance rate of customer

*Improved numbers

*Question 2

When to go for VMI?

*Risks & Trade Offs

*Confidentiality

*Supplier dominance

*Performance of POS retailer

*Cost to benefit ratio

*Responsibility appetite

*Question 3

Other types of alliance may help businesses

*3rd Party Logistics: e.g. Gati, DHL

*Distributor Integration: Huminsulin Injection- Eli Lilly

*Revenue Sharing: e.g. Dabur India

*Expired/Outdated Stock Replacements (Part): e.g. Ranbaxy

*Contract Manufacturing & Supplies

*Buybacks: e.g. Haldirams

*Question 4

How much can we emulate this case situation in other business set ups as

advantages?

*Cost reduction, Customer benefits

*Retailer benefits, Inventory management

*Immediacy to challenges (High)

*Overall Supply Chain Cost reduction

*Efficient working capital management

Thank You