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ORUN inventory and supply chain management problems

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A synopsis of the inventory and supply chain management problem(s) as you perceive them to be.

2. Using the facts of the case, as well as theories and best practices of Operations Management, prepare a short description as to what you intend to do to address each of the 5 goals above.

3. Explain how you would identify and use measures of effectiveness (identify appropriate metrics) to assess progress in resolving these issues.

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This case discusses regarding an organization ORUN, which is a 4th generation family owned company with a corporate headquarters and 4 plants located in three states, each of which manufactures nearly identical product lines. This organization and its all plants are considered a leader in the development, design, manufacture, marketing, and distribution of metal cabling and related products used in the telecommunications and automobile industry but in present the company owners had confronted some core issues in regard to its inventory and supply chain management. All these issues confronted by the organization will be discussed in this analysis along with suitable recommendations and resolutions.

Solution - 1
Synopsis of the Inventory and Supply Chain Management Problems

Throughout the beginning of operations in ORUN, the company is doing well but in present due to increasing globalization and competition the company is confronting a number of strategic and operational issues that are basically related with the flaws in its inventory and supply chain management. Over the course of time, the ORUN remote operations have become very self-governing in their local procedures and due to this a momentous communication gap had risen between the corporate headquarters and the 4 plants (Case Tool for Assessment of Program Outcomes 2 and 3).

As a matter of fact, very much information is moving between plants by facsimile and email that daily operations had become dependent on the speed and availability of these processes. The plant's functioning outcomes are not getting to local and headquarters management on time and due to this the further processing are getting delayed along with their effective management. In addition to this reporting done by the headquarters staff is quite confusing and the metrics used by operating units are explicated at each remote site and are not distributed all through the company.

Various plants of the company are making use of different procedures in regard to manufacturing, supply chain management, marketing and financial reporting and due to this the company is not becoming capable in managing the inventory which in present is needed to be managed effectively as it is getting costly day by day. In addition to this, there does not is any agreement within the company regarding whether certain products or long-term contracts are prolific or not. The value contribution of individual vendors to company's on the whole process is unidentified for certain.

Moreover, there are no processes in place to assure incorporated supplier management all around the company leaving this in lieu to the individual plant purchasing managers. The material purchase cost is quite fluctuating and raw material and finished goods inventory is increasing prominently that need to be reduced. In the end, on the whole we can confer that the entire organization ...

Solution Summary

The expert examines ORUN inventory and supply chain management problems.