Executive Summary
ALEX- Meditech is a leader in the endoscopic surgical instrument market. In the past, Meditech has a large market share and received a good customer feedback. However, Meditech is now facing increasing customer dissatisfaction due to the long lead-time and shortage of product.
For Meditech, they are now facing increasing customer dissatisfaction and providing the poor service for their customers. The main problem is that the long lead-time of delivering and shortage of product which cannot meet customer demand.
RUBY- After we analyzed the existing problems, we found that there are three root causes. First one is the inefficiency supply chain management of product innovation. The company spends its sources on launching the new improved product and it leads to the constant shortage because of the production capacity strain. In addition, customer need to wait for 6 weeks for their product it further lead to customer dissatisfaction. The second one is poor customer demand forecasting; the forecast system is adjusted again and again by employee in different departments which lead to inability of using forecast system effectively. Third one is lacking communication, employee in different departments does not cooperate with each other and it leads to distortion of information. The lack of communication related to panic orders lead to the bullwhip effect eventually
JESSICA-
CINDY-The third alternative is using the EDI system. We recommend the EDI system divided into two parts, which are internal and external. Internal part of the EDI can let the departments instantly share the information with other departments. External parts of the EDI provide the clear vision about inventory and demand for supplier and distributor. The report also include several pros and cons about the EDI system. Our finally recommendation is the third alternative, which is using the EDI system. EDI system is a general information integration system that can solve three basic root cause of problems at the same time. Clear demand and inventory through the inventory sharing can increase the efficiency of supply chain management and improve the demand forecast. Simplify the structure can reduce the lead time. Through increases the communication across departments can improves the accuracy of information and efficiency of the overall supply chain.
Introduction
Meditech is a leader in the endoscopic surgical instrument market. Meditech has managed to capture a huge market share. Currently, the distribution network of Meditech consists of a central warehouse, domestics dealers and international affiliates. In addition, the main strategy of Meditech is to focus on introducing new products and offer them to hospitals and surgeons. In the past, Meditech has been experiencing a good customer service and feedback. However, Meditech is now facing increasing customer dissatisfaction due to the long lead-time and shortage of product. The on-time delivery of products to...
