Case study analysis and methodology

¶ … Rewired Supply Chain

Synopsis of Supply Chain Management - Broadly speaking, supply chain management is the way a network of interconnected businesses is managed to provide product and services to clients. It is a broad category that involves retail, manufacturing, and spans the movement of raw materials, work-in progress inventory, and finished goods from the actual point of origin to the consumer (consumption). The process and interconnection between all points of manufacture can, of course, become complex depending on the nature of the product, and the number of parts or suppliers necessary for each part in the chain. The more complex the finished part, e.g. missile components, etc., the more complex the supply chain, inventory management, and nature of the longitudinal event (Jongebloed, 2007). Using the idea of SCM, if there is an excess of supply materials, regardless of what it is or how it is configured, that bulk increases costs. The warehouse does not know what the container contains unless they open it and inventory it, causing time and labor to sort. Similarly, a retail organization does not know what the semi-trucks contain unless the truck is open and the contents sorted and reinventoried. Often, it is not the goods on the truck that are low in stock and then even more time and money are necessary to warehouse the materials that arrived, and then reorder those needed. Time is money, and if items are not on the shelves, they cannot be sold. Thus, what is required in modern supply chain management is both transparency and coordination between manufacture and user -- only the goods necessary shipped and delivered (Perera, 2007).

Part 2 -- Facts of the Case in reference to 5 goals

1. Allow ORUN to minimize costly inventory - Issue revolves around communications and procedures between different plant locations. Change communication procedures to move into real-time communications with plant management so supply-chain issues are eased and productivity over the company as a whole enhanced.

2. Improve the overall supply chain management within the company. Continue with communications improvement. Develop a master procedural rubric for manufacturing, supply chain management, marketing, and financial reporting that aligns with strategic and tactical goals. Increase technological solutions as necessary to maximize yield.

3. Ensure demand requirements are met, avoiding stock outs and reducing overall costs. Revamp initial inventory system (stock) through technology. Develop just-in-time concept with suppliers so that as a certain stocking level alert is received, and order is placed with supplier based on delivery time.

4. Standardize business practices among plants with a given supplier. Using strategic plan, benchmarking, or the continuous process of measuring products and services against the highest standards, toughest competitor, or national requirements, is a way to ensure continual quality. purchasing may be done based on the needs of the firm, billing is automatic and generated from the purchasing process; inventories are keyed in so that out-of-stock or backordered items are known immediately, transfers to and from particular departments are automatic, and at all times there is a real-time picture of the situation for management. In the case of a networked-based supply chain vendors may be evaluated based on past data and models made to ensure efficacy; while the accounting (cash) cycle may be compressed because of monitoring and accuracy in paying and ordering exactly what is necessary. Warehousing activities are easier to predict, as are the human resources necessary to ensure proper supply.

5. Increase supplier efficiency with real time information on firm/planned orders and forecasts. Use a "sense and respond" supply chain paradigm offers much more than many traditional approaches to supply chain management in that it enable the manufacturer to more effectively track and monitor the entire fulfillment process from order entry to proof of delivery. In essence, in supply chain management, entertainment, broadcasting, and marketing, "sense and response" attempts to put the right part with the right organization (or individual with message, product and service) in order to reduce various costs and out of stock items, excess inventory, poor customer service, low responses to advertising campaigns, inaccurate deliveries, and poor time management and use on both ends of the scale. In a way it is the next generation of the supply chain model because it attempts to use all sorts of data to more robust and efficiently move goods and services in a timely basis, resulting in a win-win situation for all sides.