Leitax Case Essay

1677 Words Sep 18th, 2006 7 Pages
How did the rapid maturing of the digital camera marketplace affect Leitax's supply chain challenges and opportunities?

Improved technology and reduction in price made the digital camera industry grow rapidly and inject life into a very stagnant sector. Worldwide sales growth rate for the digital cameras had double digit growth for almost 15 years. However that growth was slowing and was starting to reverse from a strong 25% in 2005 to a weak 5.2% in 2006 and into negative territory 2007 and beyond. This growth masked the problems in Leitax's supply chain.

Other external factors magnifying Leitax's supply chain challenges was that digital camera technology over the last 15 years had grown dramatically to the point where the
…show more content…
Why was the role of the Business Assumption Package such a revolutionary one in transforming the forecasting process?

The ‘Redesign Project' was created to transform the supply chain processes ultimately effecting organizational change at Leitax. According to the case, "the Redesign Project had four objectives: to reduce inventory levels across the supply chain; to increase supply velocity and accuracy of planning information throughout the supply chain; to increase supply chain upside and downside flexibility; and to improve on-time performance to customers".

To ensure success, the teams had to have leadership qualities and skills in the following areas:
• Supply/demand planning process and systems
• Distribution and channel inventory reduction
• Supplier and contract manufacturer inventory liability reduction

To overcome the stovepipe or silo problem, the teams implemented a series of activities for each areas. According to the case, "planning processes and systems included improvements to the demand planning, master production scheduling and customer commitment processes and installation of IT systems to support these processes". For channel inventory reduction, the case documents that "the process improvement was to add cannel operations managers who understood the larger supply chain implications of the product requirement decisions reached by the account managers and buyers". The goal with channel

Related Documents