CII Institute of Logistics PGDSCM & Certificate Programs Semester-end Examination June 2011 LOGISTICS TECHNOLOGY & e-BUSINESS

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Which of the followi g stateme ts is not true with res"ect to <)P% a& ot "erform i ter1e ter"rise "la i g (& <)P s#stems com"leme t tra'itio al *)P s#stems (# "ro!i'i g i tellige t 'ecisio su""ort ca"a(ilities c& <)P s#stem collects 'ata from e!er# ste" i the su""l# chai '& Pla i g ca"a(ilit# of <)P s#stems is su""orte' (# 'ema ' a ' su""l# chai eBecutio "roce'ures Part B Answer any four (4 x 15 = 60 marks) 1. +. /. 1. +. /. Discuss i (rief the !arious o"eratio s ge erall# automate' (# eS0* Write (rief otes o *12usi ess .rchitecture a ' .cti!ities 9 tegratio i *12usi ess Discuss software s#stems a ' 'ata resources i i formatio <)P ca

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/&%%, the mass-market stores had different re0uirements than the smaller retail stores, making the supply chain even more essential to Levi Strauss s success. 'he focus on the supply chain #egan with a whole new approach to supply chain management. 'his approach was not something Levi Strauss was familiar with and re0uired a major rethinking. 1ontrol was one of the major issues. 'he lack of information and control resulted in a poor performance, with only 62 percent of Levi Strauss s products reaching the customers on time. 1hief Information 3fficer, 4avid +ergen addressed these pro#lems, implementing information technology that allowed e*ecutives to #e provided with the information they needed to control the distri#ution process. 'his included implementing Demand Replenishment Systems and Forecasting Technology. 'his gave Levi Strauss the information and control they re0uired to manage their operations #oth for their own #enefit, as well as to meet the needs of ,al-.art. 5n e*ample of the #enefits of the system where it refers to the stocking of Stain 4efender pants in the third 0uarter of $%%$. 'hese products were e*pected to sell around $ million pairs, #ut information on sales figures revealed that sales would #e much higher. 'his information allowed Levi Strauss to 0uickly respond and increase manufacture and distri#ution of the products. 'his resulted in two major #enefits. 6irstly, they were a#le to take advantage of the increased demand and supply that demand to increase sales. 'his resulted in Levi Strauss 0uickly recogni)ing an opportunity and taking ma*imum advantage of it. Secondly, they were a#le to increase supply so that ,al-.art shelves would remain stocked. 3ther changes made #y +ergen to improve the supply chain included developing scanning tools for manufacturers to use to check the accuracy of cartons ready to ship and implementing 5S$ technology to allow e*change of 74I transactions with ,al-.art, with this supporting colla#orative forecasting. 'hese changes illustrate how technology allows the various companies in the supply chain to interact and work together. 'he end result for Levi Strauss so far is a much improved supply chain, where control and information issues have #een largely improved #y the use of information technology. 'hese improvements were significant enough that ,al-.art and Levi Strauss decided to go ahead with the stocking of the new Signature line of jeans. . swer the followi g ;uestio s: a& What situatio i itiate' ?e!i Strauss teami g u" with Wal1Mart a ' what im"act it ha' o ?e!i StraussC Su""l# Chai Ma ageme t% What o"te' the C94 of ?e!is Strauss to im"leme t a ' the Dema ' )e"le ishme t S#stem a ' $orecasti g Tech olog# as "art of SCM% What s"ecific i formatio #ou thi k the eBecuti!es coul' get from the Dema ' )e"le ishme t S#stem a ' $orecasti g Tech olog# to ma age a ' co trol the o"eratio s i ?e!is Strauss%

Levi Strauss is a company that was once highly successful and highly competitive in the denim jeans market. Like many companies, as times changed, Levi Strauss found that its success levels were rapidly declining. In 1996 Levi s sales reached their peak at !".1 #illion. In $%%$, their sales had declined to a low of !&.1 #illion. 'he company s market share followed the same trend decreasing from 1(." percent in 19(" to 1$ percent in $%%$. Levi Strauss recogni)ed their pro#lems and #egan to take action. 'he first step involved responding to market needs and providing a less e*pensive product in a more convenient location. +ased on this idea, Levi Strauss introduced their Signature jeans line, a new line with a more #asic jean product for a lower price. Levi Strauss teamed up with ,al-.art, who will stock their product to provide customers with easy access to the product, while providing Levi Strauss with the volume of customers they need. 'his #usiness decision then had a major impact on Levi Strauss s supply chain. Since the num#er of ,al-.art stores is over

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