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Supply chain management - Case Study Example

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Case study 13.1 Answer 1 Chemtech, a flagship chemical company faces huge problems in its various areas of operations vis-a-vis logistics and supply chain management, purchasing and marketing. The logistics and supply chain seems to have flaws because its main supplier, Potash needs at least three months time to fulfill the demands for slow moving products whereas Chemtech just uses one month’s forecast for its inventory supply…
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Supply chain management
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Download file to see previous pages The marketing area of Chemtech is primarily concerned with taking orders from the customer for their next month’s requirement. It then makes forecast and relays the same to the purchase department for timely delivery of the same. The department feels that lack of effective planning by supply chain management is responsible for the problems in meeting the customers’ demands. Answer 2 Chemtech needs to streamline its coordination between the departments and ensure that the logistic planning for at least three months is made in advance. This would give the suppliers more time to make arrangements for slow moving products as well as ensure availability of inventory that is often required at short notice. The company should also show more confidence on its long term suppliers and help understand their problems. Logistics and supply chain is vital part of business strategy and therefore concerted efforts for efficient receipt and delivery of goods and services need to be implemented. Effective computerization of its various in house operations and functions would ensure smooth flow of information leading to improved performance outcome. The computerization would also help to forecast the products requirement so that it can maintain the inventory and meet the requirements of the customers at short notice. Answer 3 The suppliers like Potash should seek trust and at least three months time from its customers like Chemtech for delivery of products which are slow moving. The repeated threats of change in the suppliers by Chemtech have also significantly lowered the morale of Potash. As a result, the company has also started looking for fresh long term customers who could give them realistic time margin to meet their demands. The three months advance order would also enable the company to increase its stock of products which could be required by customers at short notice. While suppliers maintain large stock of products that are in high demand, the short supply of slow moving products often becomes huge liability for them. Hence, longer lead time for such products would facilitate the suppliers to coordinate its own logistics and supply chain. The linkages with external agencies are important part of logistics and supply chain management. Thus companies that are able to develop trust and mutual understanding would greatly benefit from long term relationship. (words: 500) Case study 15.1 Answer 1 There general challenges and issues ...Download file to see next pagesRead More
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