SCM Case Study - 10

Submitted By: Roshan S Andrews

1 Ans.)
Var provide values like distribution of product to hospitals from
Canada. They also distribute 3m health care items to approx. 350
customers that are of Canadian hospitals. They also gave chance to
customers to elect and buy good goods. They provided value added
service like storage, product handling, transportation etc and inturn
they got 8% agency fee. Var also provided electronic data
interchange for order processing and sales tracing for 3M. Var also
provided inventory management, replenishment and small lot
shipments.
The current system does not provide as much as VAR provides
in distribution.
2 Ans.)
I don’t recommend for shifting to direct distribution model as VAR is
handling it very well with technology for inventory management and
its updated regualry. For shifting to direct model it should have
updated technology which tracks all supply chain process which
incurs less loss.