Santa Supply Chain Problems - Term Paper Example

The issue of inadequate forecasting and poor communication has also affected the business. The management also faces the problem of too much paper work that gives them a hard time handling. Reports further indicate that the number of toys that are dead on delivery had risen compared to the previous year. The enterprise also faces some serious financial issues as shown in the reports that there is a considerable budget deficit affecting most departments in the enterprise. In addition, the Santa supply chain faces a serious problem due to the constant change in the customer demands.

This has created the need to expand the company to meet the growing and changing demands of the market. Customer satisfaction data of 2011 revels that the there was a drop in customer satisfaction as compared to the year 2010. Most complains from children stated that they either got the wrong toy, or they did not get the toys they wanted. Reports indicate a lower customer rating in Europe: especially England, France, and Germany (Dr, Green 2011). The international consultants suggest that the company should apply the supply chain management programme.

The programme integrates the procedures from manufacturing, operations, purchasing, transportation, and physical distribution into one program. It also involves integrating the activities of all these departments into a seamless process. Additionally, it links the participation of all the partners in the chain. The program aims at bringing a quality product to the market, and creating customer satisfaction. The benefit of supply chain management concept is obtainable when there is the integration of the entities within the organisation, and with the external partners who include suppliers’, distributor’s, carriers’, customers and the consumers (Zigiaris 3).

The idea of supply chain management ensures quick delivery of goods to their destination. These bottlenecks include poor forecasting that has