Leitax Case Essay

1662 Words7 Pages
How did the rapid maturing of the digital camera marketplace affect Leitax's supply chain challenges and opportunities?

Improved technology and reduction in price made the digital camera industry grow rapidly and inject life into a very stagnant sector. Worldwide sales growth rate for the digital cameras had double digit growth for almost 15 years. However that growth was slowing and was starting to reverse from a strong 25% in 2005 to a weak 5.2% in 2006 and into negative territory 2007 and beyond. This growth masked the problems in Leitax's supply chain.

Other external factors magnifying Leitax's supply chain challenges was that digital camera technology over the last 15 years had grown dramatically to the point where the
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Define the core interests/incentives of key actors in the forecasting process and identify the most pressing alignment needs/priorities among key actors?

The concept of demand forecasting more accurately measures and predicts the changes and opportunities in the supply chain.

Based on the case, there were two fundamental changes to standardize and improve the accuracy of forecasts. The first area was to "switch the focus of the focus of the forecasting process from sell-in to sell-through". This meant tracking closely what was sold in one region and shipped from another made forecasting market demand a more accurate exercise. The second area centered on ignoring capacity constraints to estimate demand. In the past, "forecasting was affected by perceptions of present and future supply chain capacity".

These forecasts were critical to the success of the company's refocused financial strategy. To accomplish this, there was high priority and core interest to align the master production schedule through the improvement of the demand planning process. This included the Redesign Project which among other things focused on the implementation of a decision support system (DSS) to create a more accurate MPS that can be published more frequently.

What was the critical mission and scope of work of the Forecast Re-Design Team? What supply chain leadership qualities and skills had

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