Supply Chain Management Case Studies

1650 Words Oct 3rd, 2013 7 Pages
Case Study #1 – Randall Corp.
1. What is the relationship between financial soundness and supplier performance? Quality of product produced and shipped can become weaker when suppliers experience financial issues stemming from contractual performance. This happens primarily when flawed products are shipped to meet present currency requirements. Because of the fact that management is highly interested in cash flow, deliveries start to get behind schedule. Late deliveries or bad quality product is not acceptable so financial ratios must be monitored and acted upon professionally.
2. What action should Bill take? Bill should try to work out fiscal issues with Qualco. He should also look into contract modifications that will meet
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The department has weak control over supply management performance with the entire supply system. Examples include requisitions being submitted without management support, having outside personnel explain the technical specifications for complex orders, and the expediter is permitted to issue purchase orders,
3. How could these weaknesses be corrected? Improvement of supply processes could be improved by defining the role and responsibilities of the expediter and ensuring all shipments are delivered to the receiving clerk. Proper inventory on hand is important as well. The supply department should be responsible for interpreting technical specifications. Training should be provided where needed. Complex orders should be done by the supply. With regard to the expediter, he or she should perform follow-up services and expediting responsibilities as needed. The receiving clerk should always receive incoming merchandise and provide inspection to ensure the products are within company standards. Verification of orders versus receipts should also be performed accurately and in a timely manner. The requisitioner is then responsible for picking up the goods and signing a receipt. Accounts payable should then receive a copy of all receipts to ensure timely payment is made. All receipts and supporting documentation should be kept on file for future reference or investigation.

4. What activities should the expediter be responsible for in
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