Essay on Case Analysis Meditech Surgical

2656 Words Nov 6th, 2011 11 Pages
SUPPLY CHAIN MANAGEMENT
Final Examination

QUESTION 1: Case Analysis: MEDITECH SURGICAL.

1. What are Meditech’s problems in introducing new products? In manufacturing ALL products?
When Meditech introduces new products, the company’s output is exceeded by a higher demand, consequence of a great amount of initial orders from customers. As a result of this situation, the company faces shortage at the beginning of introduction, product cannot be delivered at the agreed time, back orders accumulate and lead times increases.
This company is not matching supply and demand adequately. Next figures (1 and 2) extracted from Simchi, L. & Kaminsky, P. (2008). Designing and Managing the Supply Chain show this situation in a clear way.
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In the case, Meditech is not ready to match its organizational capabilities (resources) with the organization strategy.
The decisions made in the development chain have an impact in the supply chain. * Decentralized warehouses
Regional warehouses are decentralized and dealer has no control over what an individual warehouse is ordering. Warehouses may be incurring in “panic ordering” without the knowledge of the central dealer.

3. Why is the customer service manager the first person to recognize the major issue?
As part of Meditech’s internal structure, Dan Franklin, manager of Customer Service and Distribution is the first person to recognize the major problem because his department has to deal directly with delivery issues and customer complaints regarding delays and poor delivery service. Customer Service representatives work with dealers and affiliates to inform them about product delivery dates and possible problems in the supply chain. As a result, representatives work in direct contact with hospita3l personnel, like in the next scheme.

Figure 5. Direct interaction between Meditech and Hospitals

Through meetings with hospital managers, Franklin realized the magnitude of the customer frustration due to poor service resulting from each introduction of new products.
A close, direct and well working relationship like this is important between Supply Chain players because it allows them to identify

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