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Celmonze Supply Chain Management Case Study

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Celmonze has been very effective and efficient in dealing with supply chain management. One of their strategy is by reducing transactional cost, helping the organization to save unnecessarily cost. Celmonze will choose shipping the products from road or water rather than paying high cost of transportation for products through airplanes even though it saves a lot of time. Although shipping might take a longer time and slower time to reach, it could help organization to save more cost. The organization also ship products in bulk according to orders so that there will not be any wastage in product shipping, preventing double shipping back to the manufacturers when the space in storage is overload. When all the products reached storage in Malaysia, …show more content…

Information sharing refers to the sharing of information among the supply chain partners about the product, market and customer information (Mentzer, 2001). It enable Celmonze making accurate and faster business decisions (Moberg). Information sharing also described as an important key to terminate ‘Bullwhip effect” which help to deliver efficient supply chain management by reducing the total cost of supply chain(Gavimeni,2006). In Celmonze, the distributor will gather the information from each retail outlet and dealer routinely to observe the sales of Nutricel Sun Protection SPF25++ . The purpose is to determine where consumers will normally purchase the product. If most consumers normally purchase at a certain outlet Celmonze tend to distribute more to that retail outlet but if there is less demand Celmonze tend to distribute less. When Celmonze have all information from retail outlet and dealer their decision making for the next order would be more accurate and faster. Celmonze also collect variety of product information that their manufacturer offer to determine which is the potential products that are more likely welcome by the Malaysia market. Thus, when Celmonze found out that sunblock serum would be a potential product in Malaysia,they intentionally bring in Nutricel Sun Protection

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