Spartan Heat Exchange

Owned equipment and supplies are often in need of repair and staff sometimes fail to keep accurate inventory and order on time of need.

Changes within the supply chain can disrupt the normal flow of goods and services because each change hasn’t been fully scrutinized. A firm can plan and speculate that a change with have a certain effect on the supply chain, but until those processes have been measured it is impossible to know the true cause and effect of any disruption.

| |iv. Service quality cost savings – Controllable and relevant – With the 6 supplier option the company saves $100,000 in|

i. With regards to suppliers delivering goods, they simply sent the goods without any prior notification. This led to a variable rate of arrival of stock in the ware houses.

Furthermore each operating office is required to develop a strategy and action plans to support the suppliers’ performance for continuous improvement and more important is that to bring the suppliers and theirs supply chain into line with the entire code. The codes of

Wally is trying his best to setup a quick response system based on whatever little data he has based on past numbers and experience of his production managers and suppliers. He does not have the luxury of looking at retailer feedback in a timely fashion and the facts that the peak season for the line of business he’s in and that the supplier lead times are extremely long do not help him much. Despite some very aggressive moves to reduce lead times and to have a better forecasting model, Obermeyer has been unable to deal with the

Office Depot uses multiple inventory strategies to order products. 90% to 95% of goods are ordered through automatic replenishment, manual replenishment, pull replenishment, and global sourcing are also used depending on channel, volume, velocity and cost. (Office Depot, 2015). The accuracy of the inventory from both a DC and store perspective is critical to the organizations success. Heizer and Render (2014) state that record accuracy is a prerequisite to inventory management, production scheduling, and sales. Accuracy is maintained by either periodic or perpetual systems (p.479). In Office Depot, the stores are required to cycle-count technology items such as laptops, desktops computers, and tablets five days a week. Discrepancies are entered in the system and bounced off the local DC’s on-hand inventory discrepancies. Office Depot is a “blind receive” organization meaning the stores receive pallets of products and simply unwrap and put them away. The only way a store knows if a product is missing is through the cycle-count program. This system was put into place to speed up the receiving process and eliminate unnecessary steps once the product was received at the store level. Office Depot conducts a full physical inventory once a year through a third party and trues up the inventory shrink at this time.

1. Faster delivery times due to decrease in lead time causing an increase in reliability

Second, the classification in inventory management is still inaccurate. That results in some problems such as: the severe lack of some products which are in growing demand (1 inch valve series 230), the redundancy making storage expenses go up and the stagnancy in storage area (to products like gear driven rotary and monitor controller)

Westminster’s domestic operations comprise three separate companies that are wholly owned. Each company manufactures and distributes its own unique product lines. Distribution centers are a spread out across the US but not shared between the companies. Management is decentralized and each company maintains a unique and independent product development and ownership. The companies will have come under the light of new SCM techniques to advance and stay competitive in the mew market. Pressure form global consumers, domestic customers and competitors have made it difficult for Westminster to stay competitive and maintain current profit margins. Westminster’s current CEO, is aware of the situation and asked to take the company in new directions. Westminster’s own plan will take the company into stronger relationships with customers and foster better partnerships. It will also improve timeliness and attentiveness it fills its orders. Is short, our actions coincide with Westminster’s; we seek to consolidate warehousing, thereby reducing warehouse transfers, ship fuller truckloads, implement RFIDs and also add the use SCM technology and KPI’s to enhance their supply chain flow and implement key performance incentives to foster better overall management of their supply chain and allow more flexibility to improve and enhance their growing supply chain. Implementing these

The change in order frequency was accompanied by a four week reduction in total lead time.

The entire organization relies on the linked inventory management and point of sale systems (POS) to maintain their standards for business and sales. Walmart has used different methods to improve inventory tracking system (Mathews, 2006). These resulted in decreasing the out of stock grocery store and empty shelves problem that leads to a better customer satisfaction. In addition, Walmart improved the inventory level management system by using advanced information technology systems and communication systems to effectively track sales and merchandise inventories in stores (Greenspan, 2015) . The store level information system allows suppliers to be notified as soon as items are purchased. Retrain employees in charge of inventory to ensure proper

lead-time of 12 weeks (it is now down to 5 weeks). To be able to keep cutting prices on

Harley Davidson’s success with the implementation of JIT had a lot to do with the fact that when JIT was put into practice, process problems could no longer be hidden by costly inventory that helped to meet ship dates. The inefficiencies in the processes were quickly identified and solved.

Inventory management is an important part of running a business. Having an accurate count of inventory along with how you record the inventory is important, especially when preparing financial documents. Inventory is considered an asset on the balance sheet, but information that is related to inventory, such as cost of goods sold, are also tracked on other financial reports such as the income statement. This data is factored into the information that is used when determining a company’s fiscal health. The type of inventory cost method a company chooses can have a significant impact on reported profits and tax liability. Without proper utilization of inventory management systems multiple issues could arise including misstated gross profits and net income.