SML Isuzu (SMLI) Ltd is a light commercial vehicle manufacturer based in India where foreign promoters, i.e., Japanese Sumitomo Corporation and Isuzu Motors, respectively have 44% and 15% shareholding, while local public organisations and individuals have 41% shareholding in the Company. SMLI experienced lack of coordination, since each stage in the supply chain wanted to optimise its local objectives without considering the impact on global supply chain. Before SMLI utilised the information system to directly collect customers’ orders online, they overproduced 18.38% vehicles in a fiscal year because of the bullwhip effect (Hasan et al., 2013).

(a) Show the importance of the bullwhip effect at SMLI. In your answer, you should explain the bullwhip effect and illustrate its consequences. Offer your views as to how the information system helped SMLI to reduce the impact of the bullwhip effect.
(b) The outbound supply chain in SMLI extends from the factory to the zone offices, the dealers, and then ultimate customers. An Enterprise Resource Planning (ERP) system and a Customer Relationship Management (CRM) system were adopted to coordinate all aspects of SML’s supply chain so as to improve operations. Examine two (2) potential risks of ERP implementation at SMLI.
(C) Suggest one (1) possible strategy to help SMLI management reduce the risks of implementing the ERP system

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