Case Study:
Warner-Lambert Collaborates with Retailers
In 2000, Warner-Lambert (WL) was acquired by Pfizer (Website-pfizer) creating the world’s fastest-growing pharmaceutical company. A major product is Listerine mouthwash. The materials for making Listerine come mainly from eucalyptus trees in Australia and are shipped to the WL manufacturing plant in New Jersey. Like all manufacturers, WL wanted answers to “What are we going to sell this week or month?” They forecast overall demand to determine how much Listerine to produce. Once demand is determined, WL calculates how much raw material is needed and when. Forecast errors lead to excess raw material or finished product inventories, or shortages. Excess inventories drive up costs; and stock-outs reduce sales revenues. WL forecasts demand with the help of JDA Demand Management System (Website-jda/). Used with other SCM software, JDA analyzes manufacturing, distribution, and sales data against expected demand and business climate information. Its goal is to help WL decide when and how much Listerine and other products to produce. For example, the model can anticipate the impact of Warner-Lambert Collaborates with Retailers seasonal promotion or a production line being down. WL’s supply chain excellence stems from the CPFR program. WL’s demand management system analyzes manufacturing, distribution, and sales data against expected demand and business climate information to help WL decide how much product to make and distribute. Because WL can smooth seasonality in forecasts, it has dramatically cut manufacturing and raw materials inventory costs. Data transfer between companies is done using electronic data interchange (EDI) (see Figure). EDI is a communication standard that enables the electronic transfer of routine documents, such as purchase orders, between business partners. It formats these documents according to agreed-upon standards.
Q1. What other supply chain management solutions are offered by JDA?
Q2. For what industries, besides retailing, would such collaboration be beneficial?
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Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.