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Supply Chain Class--Company analysis - Case Study Example
Pages 4 (1004 words)
Running head: supply chain 26th November 2013 Introduction Local and international companies have taken initiatives to maintain an effective supply chain in order to ensure that their products are appropriately distributed in the market…
For the last 25 years, many companies have been negatively affected by the failure of their supply chain an aspect that has caused some of these companies to be acquired by their competitors at very low prices. Other failed companies have resulted to loss of a lot of investor’s funds thus resulting to their closure and court litigation as the investors seek for compensation. This paper will discuss common mistakes that are done by the company leading to supply chain disasters. One of the key mistakes that companies make is failure to do an extensive research on the suitability of the technology in improving their supply chains. For example, in its effort to improve production, Foxmeyer failed to research on how effective the new ERP system and the highly automated DC would be. Despite the efforts by the consultant to notify the company management that some areas of the new technology were not properly functioning, no step was taken. That ignorance has also greatly contributed to the supply chain disasters. Lack of undertaking feasibility studies that involves the evaluation of the benefits and costs associated with the supply chains is also a mistake that led to their failure. It is vital to note that before any company invests in new technology or a supply chain, it is essential to calculate the returns that are expected. ...
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