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Avion, Inc.
Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery.
At this point, Kevin O’Donnell, another procurement manager, entered the room.
What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material?
To explain: The part of the supply chain that is most closely involved in this situation and the responsibility of each part to maintain the smooth flow of materials.
Case summary:
Person SD and Person DM are the procurement managers at Company AI. They sat with each other and were reviewing the poor performance report from a key supplier Company FT. The report was directed towards the deteriorating quality of Company FT on the quality of material and on-time delivery.
Material quality and on-time delivery:
The quality of the materials plays an important role in the success of an organization. The quality of the materials plays a vital role in product quality. The on-time delivery of products is the delivery of products at the right time which makes it important for an organization to be competitive.
Explanation of Solution
The components of materials management and production are involved in this scenario. These two components are broken down in the supply chain in this scenario. The job of the materials management is to forecast the needed supplies and other materials and passing off that information to the suppliers.
Production is responsible for developing and maintaining a good line of communication-based on demand. The production team will inform on the need for any supplies to the management. The management will have to make a decision on the supplies based on the information present on hand.
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Chapter C Solutions
Purchasing and Supply Chain Management
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Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning