Major Facts
The major facts of the supply chain case study are as follows. First, the inventory carrying cost was extremely high due to the accumulation of large amounts of obsolete and slow-moving inventory and managing a broad mix of products. The products were a mixture of expensive long-lead time engineered system and low-value independent units. Secondly, the company found it necessary to initiate a change in inventory management, manufacturing, and product support.
Major Problem
The major problem was; how would the changes to regularly dispose of slow-moving inventories without having a negative impact on the balance sheet and profit and loss accounts be instituted?
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Possible Solutions
The following three solutions are likely to address the problem. First, the firm needs to centralize the platform that handles all supply chain management. Second, the firm needs to keep an updated information flow. Lastly, they need to collaborate with customers to refine the accuracy of the various lead times. The advantages and disadvantages of the specified solutions are as follows:
Centralization of the Platform That Handles All the Supply Chain Management
Advantages
Facilitates real timesharing of information between the departments to enhance timely implementation of processes,
Elimination of duplication of roles and inventories gave that they are sourced, supplied and managed on one platform (Fredendall & Hill, 2001) .
Disadvantages
The centralization of the process gives one department an autonomous control of all the supply chain and eliminates the existing checks and balances that are instituted by the various departments (Fredendall & Hill, 2001) .
Updating Information Flow
Advantages
Equips the forecasting team with reliable information to facilitate their forecast on demand on the items with long lead time (Emmett, & Granville 2007) .
Disadvantage
It is expensive to track all the dispatched items (Emmett, & Granville 2007) .
Collaborating With the Customers to Refine and Redefine the Lead Times
Advantages
Accurate definition of the lead times on the various items minimizes the unnecessary keeping of inventory and facilitates the company's ability to meet its demand and supply (Emmett, & Granville 2007) .
Disadvantages
The data used in the refining of the lead times may not be accurate due to the inaccuracy of their sources especially it emanates from only one client (Emmett, & Granville 2007) .
Choice and Rationale
Centralization of the Platform That Handles All the Supply Chain Management
The strategy involves the centralization of the platform that handles sourcing, transportation, warehousing, manufacturing, stocking and sales aims at making all the information accessible to all the departments. As a result, it eliminates the untimely introduction of items in the supply chain. A centralized platform is likely to enhance the inventory management of both the slow moving and fast moving items (Fredendall & Hill, 2001) .
Updating Information Flow
Although it is prudent to keep expensively engineered products with long lead-time in stock, their long stay in the warehouse impacts negatively on the overall cost of the supply-chain management. As a result, one of the strategies of managing their disposal is developing reliable information flow on the supply and demand cycles tracking of the already installed long lead-time products. The acquired information should be utilized by the various departments of the firm to effectively manage their inventory and prediction of demand and supply (Fredendall & Hill, 2001) .
Collaborating With the Customers to Refine and Redefine the Lead Times
The correct establishment of lead-times enables accurate planning of replenishing stocks. The firm can solve the keeping of obsolete items by having an accurately define the lead time of all the items required in its production and the associated products. The lead time combined with product forecast is likely to reduce the time of keeping the finished products (Emmett & Granville 2007) .
Implementation
Centralization of the Platform That Handles All the Supply Chain Management
The centralization of the platform that handles all the supply chain management can be implemented by having representatives from the various departments appointed to form the supply chain management team. The main responsibility of the team is to avail and audit department specific details such as the specification of the item. Information, on the other hand, should be availed using the implementation of information technology information sharing platforms (Fredendall & Hill, 2001) .
Updating Information Flow
The implementation of the information flow should start by setting up a record and maintaining information of all the dispatched long lead time items. Furthermore, information about previous dispatched items can be sort and updated into the developed record (Fredendall & Hill, 2001) .
Collaborating With the Customers to Refine and Redefine the Lead Times
The process involves the establishment of a record that keeps all the lead-time of the various systems. An information technology solution such as software can be implemented to utilize the various parameters in determining the said lead-times (Emmett & Granville 2007) .
References
Emmett, S., & Granville, D. (2007). Excellence in inventory management: How to minimise costs and maximise service . Cambridge, U.K: Cambridge Academic.
Fredendall, L., & Hill, E. (2001). Basics of supply chain management . Boca Raton, Fla: St. Lucie Press.
