Supply Chain Management Capstone Course (ODPG) Case Study Analysis
Logistics and Warehousing
Under the process of logistics and warehousing after the processing of procurement,various steps need to focus on by the organization that raised challenges in the process of operations. Firstly, include the holding lines of general inventory and replenishment because in various situations most of the needed parts are out of stock. It noticed that the organization works constantly on it too much as compared to its coming orders. The analysis presents the inventory system considereda standalone database under Microsoft Access by using barcodes. Under the MRP process, the organization again uses a standalone database with a combination of spreadsheets. However, all the platforms are working alone which ultimately creates uncertainty in the operations of purchasing, manufacturing, sales, and inventory holding. Because the data in the spreadsheet is updated manually for scheduling on daily basisit is analyzed that the data is not updatedregularly and it impacts the working procedure and createsa delay in the processes.
Alternatives
After the analysis of the overall process of the supplychain inside the organization and identifying the challenges that are raised under the products categories. The organization must come up with a new initiative in the working procedure to overcome the rising challenges and problems.Now various alternatives are neededto be the focus of the organization to get sustainability in their purchasing process and the supply chain process.
- Organizing the Audit Committee
- One Point Data Base System
- Directly deal with Manufacturers
Evaluation of Alternatives
The evaluation of alternatives is necessary for the organization to understand and identify the best-fit alternative with the working procedure of the ODPG. It helps the organization to understand the benefits and issues of using these alternatives in its operations. After the evaluation, it makesclear identification of the best alternative that help to reduce the rising challenges and helps to increase the gross margin (profitability) of the ODPG.
Organizing the Audit Committee
The main benefit of organizing the audit committee it provides active mistakes under the financial reporting process and helps to control the internal operations of the organization(Zraiq, 2018). Implementation of this alternative helps the ODPG to get clear reports for each Replenishment product, which sellsat different prices because of various events that occur. This audit committee helps to improve the practices of operation and helps to reduce the time-consuming overall purchasing to distributions process. This implementation is beneficial for the organization to improve its IT systems and technology used for record keeping.
One Point Data Base System
It is a data system that is used for easy access to all the information on one platform that helps the organization in the management and updating of data(Halchenko, 2021). The 1-Point Data System is used for storing all the data or files that obtain all the relevant information of every department in one platform, which includes purchasing orders, suppliers contact, sales transactions, customer data, inventory records, financial, and product information on all categories. This database is an electronic base software that is used in the computer systemand it considersbeing controlled by the data management system. It considers all the data in the system in the form of electronic and digital formats that become easy for the organization to use the information whenever it needs.
Directly Deal With Manufacturers
The overall analysis of the purchasing process of the ODPG presents that most of the purchasing of custom products and general inventory are purchased from various suppliers which ultimately increases the uncertainty in the quality of products, negotiation in prices, and high time-consuming in purchasing and distributing. The main and key benefit of dealing directly with the manufacturers provides the best purchase price for materials and the benefit of negotiating in purchasing the bulk of amounts(Matsui, 2020). This process is consideredfor cutting the intermediaries between the processes it ultimately helps the organization to get the best quality and best prices. However, a few issues raise directly dealing with the manufacturers that affect the relation with suppliers,and mostly some various parts or materials need to be purchased from different countries. There is no alternative considered by the organization to purchase those materials inside the country so somehow directly dealing with the manufacturers is not supposed to be implemented in a few situations.
Decision Criteria
After the evaluation of all three alternatives, different benefits and issues are determinedthat may beraised after its implementation. The decision criteria are based on selecting the alternatives that provide the highest number of benefits to the ODPG and help to reduce the rising challenges in the overall process of managing and scheduling. It helps to increase the profitability ratio in the overall operations, which ultimately helps the organization to increase its total revenue that generates from the three different categories of the product under the process from pre-production to production process. The evaluation identifies that (Organizing the audit committee and introducing the 1-Point database system) provide a high level of potential in operations.
Recommendation
The process of selecting the best alternative with the help evaluation process and identifyingthose alternatives (1 and 2) is the best alternative for the organization. The audit committee helps the ODPG in allocating the information of all financial records and operations. It mainly helps in recognizing the changing prices because of different events. 1-Point database system reduces the time consuming of data recording separately for each department and all the information is present in oneplatform helps to reduce the cost of using the different databases. This database system mainly helps to improve the efficiency in scheduling and record keeping that considersrecording manually for the scheduling. Both of the alternatives help to reduce the uncertainty in operations and improve the gross margin in Replenishment after the implementation of alternatives that consider a large percentage of total revenue.
Conclusion
The overall case revolves around the challenges of low gross margin and uncertainty in operation because of consuming high time under the authority of Suhani as a CEO. It presents that organization has three main product categories in which ODPG considersa few issues of unrecognizable information of price changes for orders and the low gross margin in the replenishment category. The overall supply chain process of ODPG presents a decentralized procurement process, which includes the issues of high time consumption in air shipments and the last scheduling process records data manually that is not updated regularly. All of the departments record data separately that increase the risk of uncertainty of getting the right information from their dependent department in less time. To reduce all of the issues and challenges there are two alternatives recommended to the ODPG to reduce its overall challenges in its operations and help to increase the profitability that considersbeing down from the last 10 years.....................
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