Essay about Case Study: Avion, Inc.

Satisfactory Essays

1. 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? It is no doubt that the ultimate problem rising in the case is miscommunication. Communication is utmost vital for both parties – purchasers and suppliers- to interact effectively, hence, to conduct business smoothly. On the other hand, it is also a lack of competency of Avion, Inc.’s procurement managers as they were unaware of such obvious changes in volume and delivery time required for operation though they deal with the flow of material on a day-to-day basis. They could not identify the problem, but also did not even bother initiating inquiries with …show more content…

4. What does it mean to get to the root cause of a problem? To get the root cause of a problem is to investigate thoroughly or to dig the problem deeply to find out the utmost causation of the problem so that it can be resolved accordingly. It is crucial to figure out the root cause of problem, whether it is a part/ a function/ a party or whatever that could not fulfill its responsibility and why that happens in first place. The right way to do is to trace back to every single layer of the problem, constantly wonder “Why?” to filter the surface to discover the hidden root cause of problem. 5. What does it mean to be a good customer? Why does a buying firm want to be perceived by a supplier as a good customer? Provide specific examples of what a firm must do to be a good supply chain customer. A good customer is the one who maintains good manner, is trustworthy, and has a good relationship with the supplier. A buying firm wants to be perceived by a supplier as a good customer so that the supplier would be dedicated to complete his tasks excellently, provide high quality of materials, be willing to share his technology, or even offer favors like exclusivities or discounts. All terms, agreements and guidelines between two parties should be spelt out explicitly to avoid unwanted occurrences. For example, Avion, Inc. should not alter its supplier right after the problem arose without searching for root cause of the problem. 6.

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