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    I need help with a discussion of a new supply chain process for the electric fans at Riordan.

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    Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion.
    Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. The company's research and development is done at the corporate headquarters in San Jose. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.

    Mission
    Our Focus
    ? Six Sigma, leading edge R&D and exceeding ISO 9000 standards define the attitude and abilities of Riordan Manufacturing.
    ? We are industry leaders in using polymer materials to provide solutions to our customers challenges.
    ? Our R&D is, and will remain, the industry leader in identifying industry trends.
    Our Customer Relationships
    ? We will strive to be a solution provider for our customers and not be a part of our customers challenges.
    ? Long-term relationships will be sought by maintaining rigorous quality controls, innovative solutions, a responsive business attitude and reasonable pricing.
    Our Employees
    ? We will maintain an innovative and team oriented working environment.
    ? By assuring that our employees are well informed and properly supported, we will provide a climate focused on the long term viability of our company.
    Our Future
    ? We must be focused in achieving and maintaining reasonable profitability to assure that the financial and human capital is available for sustained growth.

    History
    The company was founded by Dr. Riordan, a professor of chemistry, who had obtained several patents relative to processing polymers into high tensile strength plastic substrates. Sensing the commercial applications for his patents, Dr. Riordan started Riordan Plastics, Inc. in 1991.
    Initially, the company's focus was on research and development and the licensing of its existing patents, but in 1992 Dr. Riordan obtained venture capital which he used to purchase a fan manufacturing plant in Pontiac, MI. At that time, the company's name was changed to "Riordan Manufacturing, Inc." In 1993, the company expanded into the production of plastic beverage containers when it acquired a manufacturing plant in Albany, GA.
    The company's most recent expansion took place in 2000 when it opened its operations in China. At that time, the entire fan manufacturing operation was moved from Michigan to China and the Pontiac, MI facility was retooled for the manufacture of custom plastic parts.

    The purpose of this sales plan is to help the sales organization prioritize activities and resources for 2006 in an effort to meet or exceed the stated sales objectives. Our two year plan to reach the $50 million revenue mark. This objective was developed collaboratively with Dr. Riordan along with the executive team. It incorporates the input of the line managers closest to the day-to-day operations. This means we need to be moving toward that objective this year, laying the groundwork and achieving results.
    The $50 million goal will be achieved through:
    ? Increased sales to existing customers by increasing sales force promotions, price discounts, and customer user group services.
    ? Expanded sales to new customers by implementing public relations activities, trade shows, brand development and sales force promotions.

    Riordan Manufacturing- Sales Plan 2006
Theme: Reaching the $50 Million Mark!
    ? Increased Sales to Existing Customers
    ? Expanded Sales to New Customers

    Part 1: Strategic sales objectives with corresponding financial goals and roll-out schedules
    Increased Sales to Existing Customers
    Existing customers are expected to account for 60% of the incremental sales that will get us to our $50 million mark by the end of 2007. Therefore, we must take a consultative sales approach to understanding the current needs and anticipate and influence the future needs of our customers. Our plan is to work with customers before they release RFPs, so that they are developed around the products, services, and solutions we offer.
    Quarter Activity
    1Q2006 ? Complete customer information system training.
    ? Input customer information into new system and use it to document customer needs assessment.
    ? Top 20 Large Accounts - complete needs assessment and develop sales growth plan.
    ? Sponsor and coordinate industry specific user group meetings.
    2Q2006 ? 12 Small to Mid-Size Accounts - complete needs assessment and develop sales growth plan.
    ? Large Accounts - RFP updates.
    ? All accounts - Profit margin reports and improvement plans.
    3Q2006 ? Small and Mid-Size Accounts - RFP updates.
    ? Active support of the new services solutions development.
    4Q2006 ? Customer needs action plans due.
    Expanded Sales to New Customers
    We expect 40% of the incremental sales to help us to our $50 million mark will be through sales to new customers. We will reach new customers by attending tradeshows and leveraging market research reports. It is important to input all new information into the new system.
    Quarter Goals
    1Q2006 ? Each sales team ember should attend 6 tradeshows in a new industry or segment. The firm should not have been previously represented in the segment. An expenditure justification report should be submitted before committing to the event. Scan key contacts in the new system.
    2Q2006 ? Attend 3 - 6 tradeshows in a new industry or segment. Scan key contacts into the new system.
    ? Complete 9 sales calls on new customers.
    ? Sign 2 new customers with first orders over $50,000.
    3Q2006 ? Attend 3 - 6 tradeshows in a new industry or segment. Scan key contacts into the new system.
    ? Complete 9 sales calls on new customers.
    ? Sign 2 new customers with first orders over $50,000.
    4Q2006 ? Attend 3 - 6 tradeshows in a new industry or segment. Scan key contacts into the new system.
    ? Complete 9 sales calls on new customers.
    ? Sign 2 new customers with first orders over $50,000.

    Part 2: Tactics by marketing mix, timing, and relationship to strategic sales objectives
    Product
    Marketing and product development are committed to developing products and value added services to help us compete to win bids. If you find that you need a specific service or product to gain a new customer, bring it to the attention of your management. We will assess whether the new service is feasible and in line with our positioning and objectives and act accordingly.
    Pricing
    Our pricing strategy will remain the same as in previous years, a cost-plus method. However, sales managers now have more leverage when working with customers and can assign discounts to customers without approval of headquarters provided the sale still meets the minimum profit margins.
    Promotions
    Sales Team Promotions:
Employees reporting under the sales group are eligible for the sales bonus program if all goals and initiatives for existing customers are successfully completed in the given quarter. For every new customer added that spends $100,000 in their first order, the sales manager will receive a $5000 bonus, plus an additional $2000 to allocate to any supporting team members. There is no upper limit to the number of $7000 ($5000 + $2000) incentives that one can obtain.
    Customer Promotions:
Customers will be excited about our promotion to buy 100 cases of the same item and get 5 cases for free. We encourage you to use this promotion, as it is outside of the minimum profit margin requirement and can help us reach our revenue targets.
    Place (expansion, emphasis on locations or customer regions)
    We are in the process of completing a comprehensive market study which will be available early 2Q2006. Based upon that plan, we will have better direction regarding with industries, segments, and geographies provide the best opportunities for growth.

    Part 3: Customer Relationship Management Strategies
    This year, we want to strengthen our relationship with our existing customers. The new sales information system will help us better understand our customers' needs so that we can shape products and solutions to respond to those needs. This can only work with your help. Part of your annual assessment will reflect the extent to which you support and use the new system.
    In addition, we are shaping and nurturing relationships with new customers. We need every member of our team to get out there and connect with new customer segments. We are providing resources such as financial incentives, tradeshow funding, and market research reports to support your effort.

    Marketing and sales

    The firm is attempting to consolidate customer information to deliver better value to the customer. The firm has historical records in many disparate databases, as well as in paper files and microfiche. Below is a listing of information the firm has available to consolidate into a CRM system.
    Historical Sales
    Riordan has a system to track historical sales. In the past, most sales data was recorded using paper and pencil. In the last few years, the firm has managed the information electronically. Information available includes the following:
    ? Dates including order, delivery, and payment dates by order.
    ? Unit and dollar volume of each product including plastic bottles, fans, heart valves, medical stents, and custom plastic parts rolled up to be examined by product group and customer.
    ? Sales by customer to include price paid, cost, margin, and discount given.

    Files of Past Marketing Research, Marketing Plans, and Design Awards
    The marketing organization wants to build on past knowledge. As a result, past marketing plans and results from past market research studies are stored in a file cabinet in the marketing department. The firm has a showcase in the lobby to display the various design awards earned. The firm is assessing the possibility of hiring a part-time college student to scan the documents electronically.

    Sales Database
    The company has 15 - 20 major customers, including a government contract for fans. The firm has 12 minor customers. Each member of the sales force maintains his/her own set of customer records using a variety of tools. Some sales team members use paper and pencil, others sales management software such as Act, and others a hybrid. In order to better understand and anticipate customer needs, the firm is evaluating a new integrated customer management system to accompany the new team selling approach that will be soon rolled out.

    Production Records
    The production plan maintains records of the number of units produced of each item by shift, which can be rolled up to the product group and year.

    Profit and Loss Statements by Item and Group
    The marketing department, with the support of the finance and production departments, maintains profit and loss statements, by item and by group.

    Marketing Budget
    The firm has historical and current annual budget allocations for marketing communications and marketing research.

    Marketing Communications activities include:
    ? Sales force promotions
    ? Price / volume discounts to key accounts
    ? Public relations
    ? Brand development
    ? Tradeshows, events, and sponsorships
    ? Customer user group underwriting
    ? Literature and other collateral material

    Marketing Research expenditures include:
    ? Market size / opportunity studies
    ? Customer focus groups
    ? Brand development research

    Marketing Budget Anticipated Results
    Two year plan to reach the $50 million revenue mark. This objective was developed collaboratively with Dr. Riordan along with the executive team. It incorporates the input of the line managers closest to the day-to-day operations. The objective will be achieved through:
    ? Increased sales to existing customers by increasing sales force promotions, price discounts, and customer user group services.
    ? Expanded sales to new customers by implementing public relations activities, trade shows, brand development and sales force promotions.

    Operations

    The R & D Department at Riordan's Corporate Headquarters consists of 5 product development personnel. Their job is to research and develop the next generation of heart valves, medical stents, and complementary medical devices. Since new product development efforts require only a small amount of raw materials and components to build proof-of-concept models or initial working models of potentially new products, their material and component requirements can be described as very minimal. Consequently, the R & D Department does not have the same supply chain problems as its other plants have.

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    This solution of 302 words provides a discussion of a new supply chain process for the electric fans at Riordan Manufacturing.

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