Question

Malaysia’s Top Glove Corporation Berhad, the world’s largest glove maker, expects a product shortage as demand from Europe and the United States spikes because of the widening Covid-19 coronavirus outbreak is exceeding its capacity. The company has extended shipping times to cope with the almost double demand surge based on the company’s production capacity. Top Glove can produce 200 million natural and synthetic rubber gloves a day. The demand increased to 100 percent more, the company only can increase 20 percent of their production so there is a shortage of about 50 percent to 80 percent. The exceptional buying momentum could last another three months but orders are expected to remain strong for up to nine months even as demand from Asian markets has started to slow slightly. Top Glove said its supply chain is well-diversified and was optimistic it would not have issues sourcing materials in the next few weeks. Malaysia has approved some manufacturers in the essential goods sectors to continue operating under specific conditions during the nation’s lockdown that ends on 9 June 2020. As operation manager, you are responsible in logistical arrangement to ensure the sufficient supply of rubber gloves to global demand. Write an assignment of this case study to analyse the situation critically and discuss the following issues.

Analyse 5 any information technologies to overcome the issues and attend all global orders. (60m)

Answer 1

The following are some Information technologies that will help in overcoming the issues and attending all global orders:

A computerised inventory system or an ERP system: These systems will help in preventing stock outs. Also, business process can adapt to varying demand conditions. This will be an asset for the company. It will keep track of all the stock worldwide

Frequency RFID (Radio Identification) helps in identifying and tracking tags which are attached to products. It helps in giving real time data to take necessary actions and increase efficiency, reducing errors and improving quality.

Electronic Data Interchange: It involves the exchange of business related data or documents. This helps in processing information quickly, improved customer service, reducing or eliminating paperwork, cost efficiency, competitive advantage and so on. Any overestimates or underestimates in supply and demand can be identified and corrected by resorting to this technology.

Bar-coder and scanner: These can be used to track items in the supply chain. As the items move around the supply chain, these technologies can be used to track the gloves.

Data warehousing: It refers to a separate consolidated database which is kept separately from the production system database. It helps in integrating data from various modes, for example, systems and applications.

IOT (Internet of Things): It helps in integrating Information Technology and Operational Technology. IT connects just about anything and everything, including products and personnel. It enables real time tracing and tracking of goods. Thus, it helps in achieving operational efficiency, predictive maintenance on resources such as assets and a lot more.