CHEMTECH INC
Case 13-1
1. What problems are faced by Chemtech in the following areas: logistics and supply chain management, purchasing, and marketing?
Chemtech Inc established in 1980, is a market leader in production of chemicals in Atlanta. Its principal utilities and a distribution center are located in outside Atlanta. Chemtech is facing a problem in logistics and supply of its produce as it has only a single distribution center which is facing a huge requirement of expansion and addition of more manpower. Since Chemtech is a market leader in chemical production hence it is necessary for the company to make proper arrangement for the distribution of its products on time else customers can purchase it from somewhere else.
…show more content…
So in this case company needs to change and modernize its purchasing of
Potash so that it is available in advance to the Chemtech and for this they need to make some international suppliers who can also provide the same thing at the same rate but most importantly on time. When Potash will be available at the factory in adequate quantities then they will be to fulfill their order requirements. In addition to they also need to increase their distribution center which is only in Atlanta.
3. What do you think a supplier such as Potash should seek from its customers?
Potash should seek from its customers that they should keep faith in the company and maintain a strong and friendly relationship with the company. In case of Chemtech, it is the policy of
Chemtech to change suppliers in case of any delays of raw material supply hence Potash is not able to focus to devote time for Chemtech. Potash seek from its customers that everyone should give their order in advance around one month before the actual requirement as the supply from the back chain is slow and we will not be able to process a large order in short duration of time.
4. How can the customers of Chemtech become better customers? What can Chemtech do to become a better supplier to its customers?
Customers of Chemtech can become a better customers by strengthen their relationship with
Chemtech. A better customer is a customer who
There are two components of the supply chain that have broken down in this instance, materials management and production. Materials management is responsible for correctly forecasting the needed supplies and materials and passing that information off to the supplier. Production is responsible for maintaining a good line of communication based of their demand, if they are in need of more material and supplies this needs to be up-channeled to management which in turn should make a decision based on the information at hand. In my opinion, based on the available
4) They should improve customer service and develop a user-friendlier web site that will enable customers to purchase online more easily or get better access to information on the company's products. This approach
Effective management of follow-ups, managing shipping delays, and communicating updated information to the customer is key to our success. Part of this is renegotiating RDD’s with the customer if there are supplier delays, at this time the date in the system must be
They are concerned about the company’s profitability and stability, which affect the ability of the company to pay salaries and provide employee with benefits. They may also be interested in its financial position and performance in regards to their career development opportunities.
P3 – Explain how focussing on the customer, by providing good customer, is essential to retailing
It pay specific attention to deals made with the government, establishing a good relation. And also he investment in quality products.
Customers expect safe and strong products, sold to an affordable and suitable selling price, otherwise they will refuse to buy it. The aim of big companies is to fulfil and exceed customers’ expectations and offer them quality products.
 Good distribution concepts with no one store more than 6 hrs. away from warehouse.
4.Given the 4 areas of the company, choose some supply chain processes and suggest appropriate performance metrics.
Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also
• Have open and honest communication with vendors concerning what is going good and bad with their products
The company aims at ensuring that they are recognized as a leading company in its industry and rise above the noise in the market that is caused by competition.
order to sustain its market position, it still offers its standardized core products and benefits from its wellstructured
2. Then we need to understand the customers with whom we have been successful and why.