Problems Faced At A Chemical Pump Manufacturing Plant

1300 Words Nov 14th, 2014 6 Pages
This review will discuss the issues currently faced at a chemical pump manufacturing plant in Plymouth, UK. The plant currently suffers from various issues such as poor product quality, late delivery and lack of communication from suppliers and frequent breakdowns of machinery. These issues have resulted in customers not wanting to place long term repeat orders with the company. It is expected that the literature being reviewed will provide short term and long term solutions that can be implemented successfully to turn the loss making manufacturing plant into a profitable one.
Sheth and Sharma1 discussed the issues and challenges of supplier relations. They highlight that a good working relationship with your supplier is a very important aspect in a company 's marketing strategy as it provides them with a next generational competitive advantage. They have identified four reasons why this is important:
• Increased cost efficiency - A good relationship with suppliers allows the manufacturing firm to receive improved services which will result in on time delivery of materials.
• Increased effectiveness - Allows easier implementation of strategies to control the quality of the products being produced.
• Enabling technologies - New technologies allow manufacturing firms to select customers and suppliers based on profitability potential.
• Increased competitiveness - Competition from other firms will force a manufacturing firm to develop better relationships with its suppliers to…
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