'Avion, Inc. Case Essay\r'

'What parts of the depict strand atomic number 18 most closely involved with the situation in this fictitious character? What is the responsibility of each part in order to maintain a smooth draw of stuff?\r\nThey ar Foster Technologies as the provider, and Avion, Inc. as the buyer. To maintain a smooth string up of material, it is the supplier’s responsibility to comply with the buyer’s requirements and standards, and provide the correct quality and quantity of yield and service in a clock sequencely manner. On the buyer’s end, responsibilities include: to body of work internally in spite of appearance organization to determine organisational needs, to bugger off requirements and standards for the supplier, to select the right supplier, to comply with the supplier’s requirements (making on-time payment etc.), and to overlook the supplier’s performance. What initially appears to be the line? What really is the problem(s) in this for tune?\r\nThe problem initially appears to be lacking of material quality and delayed preservation moved by the ugly performance and communication from the supplier, Foster Technologies. The real problem in this gaffe is caused by extremely ridiculous planning, ineffective communication, lack of alternative supplier sources and inconsistent organizational structure deep down Avion, Inc. How balmy is it to defeat suppliers? What could complicate a firm’s skill to with to a new supplier? It is non easy to switch supplier at all, especially when a firm has never prep atomic number 18d any alternatives/ nominee suppliers.\r\nDepending on the type and quantity of proceedss needed, and required delivery time, it might be less easy for a firm to switch. For example, time constraint and/or freehanded demand will significantly narrow mountain possible suppliers to switch to; and a special product that requires customized machinery or tools in the issue process, will wit hal complicate the switch. What does it mean to get to the root cause of a problem?\r\nIt means to not plainly to fix the problem at the moment, but in any case to develop a solution and strategy to hold open the problem in a long run. For this case in particular, it could mean a redesign of the organizational structure of Avion, Inc., changing precaution and consolidating procurement, production and materials management teams. What does it mean to be a good guest? Why does a buying firm deficiency to be perceived by a supplier as a good customer? allow specific examples of what a firm must do to be a good proviso chemical chain customer. I think a good customer gives clear and consistent instructions and expectations of the products and service receiving, is ready in communicating with the supplier to ensure high-fidelity delivery of the instructions, and comply with the supplier’s requirements.\r\n amongst suppliers and buyers, credibility goes both ways. Like debateed in class, it is not buyers’ world anymore. There is no longer exclusively competition between suppliers, but also between buyers as well. To be a good cede chain customer, a firm must be making payment on-time and meet any separate requirements of the supplier, convey the firm’s necessitys and needs intelligibly and consistently to the supplier, and perform measurements on supplier’s performance and maintain an open and consistent communication. justify the role of performance measurement in managing proviso chain activities. Performance measurement in managing supply chain activities is extremely important.\r\n1. The results atomic number 18 fact-based rather than subjective. They are clear and quantifiable, which means they are easy to follow, to quantify upon, to communicate, and to support an objective decision making. 2. When suppliers know that they are monitored, and what they are monitored upon, it can help them to make give performanc e. 3. The results can easily be used to differentiate performance of suppliers. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain? Organizations within a supply chain are linked together, and a supply chain is still of interrelated activities. Goods and service, finance, and information flow in a set direction and sequence. Each step is undeniable for the next step to happen. Therefore, any change within a supply chain can mend the normal flow of goods and services.\r\nWhy might Avion want to reduce the lead times on its purchased materials and components? I think one reason is to reduced the time of cash invested in purchased materials and components, hence to increase Avion’s cash flow. Just as they are a customer to Foster Technologies, there must be customers on the other end of Avion, Inc. that might be demanding after delivery. Why do firms single-source contracts?\r\nSingle-source contracts can be court effec tive. It will be lower cost to source a high saturation of supply from one vendor, rather than source less volume from several vendors. Another benefit of single-source is that, it is easier and requires less resources in maintaining a relationship with a vendor. I sham firms that choose to single-source contracts are usually smaller in size, and they use this way to be conserve resources. cave in an action plan for Avion that addresses the issues presented in this case. Be on the watch to fully explain your recommendations.\r\n1. Susan Dey should work with Avion’s production group regarding monthly projected volumes, delivery time frame, and requirements about altering final material push button quantities. 2. Bill Mifflin should begin identifying alternative suppliers, in case contract with Foster does not continue. 3. Kevin O’Donnell should work with Foster’s production manager, firstly, to establish a sincere communication; secondly, address issues writ ten in the memos and letters from the production manager and seek solutions; thirdly, discuss about next step to take and future tense production volume. 4. Avion, Inc. should redesign management and structure within its organization, to prevent similar problems in the future.\r\n'