The Case of the Rewired Supply Chain - Coursework Example

Organization lacks a linkage between their various arms. These problems are discussed below with appropriate solutions. Problems The problems in the company can be classified in two categories i.e. strategic and operational. Both of them are discussed below: Strategic ORUN have become very independent in its local procedures. Communication is present in the plant but not in local headquarters. Due to this problem of communication, results of various transactions are not reaching to the headquarters on time.

All plants are so independent that they have their own metrics and measurement systems. This is resulting in confused staffing reports. There is no agreement in the companies that which products are profitable and which are not. Company is not working on the value contribution in its products. Supply chain procedure of the company is quite traditional and long. It should revise its supply chain management system. The overall cost of the company in conducting business is high. There is a lack of proper planning, organizing and forecasting.

Operational Inventory management in the company from production to final delivery has become quite costly, because all operations are performed by its own departments. This involves more workers, raw material management, pay scales etc. Due to lack of proper management systems there is excess in raw materials and finished goods inventories. There is not a balance between supply and demand of products. There is a problem in its manufacturing operation systems. Contribution of suppliers is unknown by the company.

There is an absence of supplier management program. This analysis shows that company is facing many issues on both strategic and operational level. It is imperative to control the present condition of the entity in order to be competitive in future. 1.2 Using the facts of the case, as well as theories and best practices that you have learned in the PROC 5820, Operations Management course, prepare a short description as to what you intend to do to address each of the 5 goals above Many methodologies can be used for operations management such as SCOR, it is a supply chain management model proposed by Supply Chain Council.

Another model which is frequently used for management of operations is SCM which is proposed by global supply chain forum. These five goals of the company can be achieved by using SCM model. Supply chain management system SCM will help the company to change management functions of individuals and will help to integrate all the activities in the supply chain process. It will result in efficient communication among all departments and will reduce the excess inventory. For instance, the purchasing department places an order with all known information.

Marketing department will be able to respond to the customer demand. It will enable to communicate with suppliers in order to fulfill customers demand. This kind of information shared among various supply partners will promote integration in the whole system. This will promote standardization among suppliers and will lead to improvement in the overall supply chain management system. Procurement Company should consider bulk shipments, through this supplier will reduce the transportation cost on imported raw materials and one will be able to receive more credit by suppliers.

This can be done only through implementing effective information technology systems, so that the communication gap between different plants can be reduced. This should not