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Evaluate the Effectiveness of the current ordering System

   

Added on  2023-01-18

12 Pages2644 Words91 Views
Business DevelopmentData Science and Big Data
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SUPPLY CHAIN 1
Logistics and Supply Chain Management
By (Name)
Name of the Course
Title of the Instructor
Institutional Affiliation
City and Date
The final date of Submission
Evaluate the Effectiveness of the current ordering System_1

SUPPLY CHAIN 2
Evaluate the Effectiveness of the current ordering System
The ordering system in every organization is one essential parameter that has the
capability of adequately determining the condition of future outcome. As far as this case study is
concerned, the ordering system is not that effective compared to what any other ordering system
is capable of doing (Stank, Keller and Daugherty 2016).
Moreover, there is only one exciting thing about the ordering system where the Eastern
Power storeroom appears to be much concerned about carrying out a reduction in terms of lead
time through an adequate assurance to their consumption of a regular spot in the entire
production schedule of their supplier (Wang et al. 2016). On the other hand, a very efficient
ordering system has the capability of providing a discount for a specific amount of goods
purchased by a given customer or consumer, the ordering system in the case study does not have
any room for offering any quantity discount for the product thereby disqualifying it from being a
useful kind of ordering system (Mangan, Lalwani and Lalwani 2016). Additionally, there is no
need for the supplier to give a high value in terms of the total number of that needs to be on an
order because this is one condition that is set to provide a hard time to Eastern power storeroom
since it has a lesser space where it can only store 90,000 meters of the aluminum service capable
which is far much below the value that is expected to be on order (Mason-Jones and Towill
2016). In conclusion, this current ordering system is not useful since it doesn't have the
capability of meeting the needs of the customers according to their expectations.
Can an improvement be made to the current system?
Adequate and reliable improvement can be made to the whole current ordering system to
ensure that it is capable of meeting the needs of various personalities within the stipulated time
Evaluate the Effectiveness of the current ordering System_2

SUPPLY CHAIN 3
frame (Sheffi 2016). This improvement can be carried out through the implementation of quite
several adequate and reliable strategies that can be easily understood by various individuals and
organizations involved in the process. One of the major improves that can be carried out is to be
able to offer reasonable discounts depending on a certain amount of order that a customer intends
to make. This will further motivate the customers and even allow them to make more orders
since they will develop a feeling of being valued.
Recommendations
In order to ensure that the entire business becomes a success in terms of meeting the
needs of all the customers in real time without experiencing any forms of delay, there is the need
of the top management officials to come together in order to evaluate some of the best strategies
that will help them to attain one of the best ordering systems that value a good number of their
operations and objectives (Christopher and Towill 2016). Moreover, the top management
officials should also work closely with the employees for them to figure out some of the areas
where loopholes might exist thus allowing coming up with appropriate recommendations in real
time.
Assessment 2
What are the major global issues that will be relevant to the entire area associated with
strategic sourcing?
As far as the market platforms together with the supply sources of Auscotton are concerned,
there appear to be quite several global issues that will be adequately relevant to the entire area of
strategic sourcing. One of the significant problems is product quality. The qualities of the
products that are attached to AusCotton are known to have quite a several ramifications over and
Evaluate the Effectiveness of the current ordering System_3

SUPPLY CHAIN 4
above and above the relevant unit cost in as much as the balance sheet is concerned (van Damme
and Ploos van Amstel 2016). The poor quality of products that are being produced by the
contract manufacturers makes it quite tricky to appropriately address the goods with a particular
vendor or even customer through various aspects of cultures and geographies. Moreover, the
poor quality of the products produced and sold through a good number of gray market channels
is known to have the capability of affecting everything downstream with the major one being the
rate of return that is obtained from those customers who are not satisfied with the products
(Croxton et al. 2016). On the other hand, performances will be able to drain the entire business
thereby taking up quite a several resources most so the ones that are typically focused on various
aspects of doing away with good products from the market as the whole platform.
On the other hand, the second major global issue that will be relevant to the area of strategic
sourcing is the time taken to reach the targeted market. As far as the worldwide business
environment together with the positioning of the AusCotton is concerned, it is clear beyond any
reasonable doubt that the total time to the market is among the critical factors when it comes to
the implementation of quite several sourcing decisions (Min and Mentzer 2016). This mainly
emerges as a result of the Intensifying competition received from various types of manufacturers
who at some point tend to have multiple products that are available more quickly thus leading to
a severe loss of market share together with market revenue.
What are the impacts associated with less than perfect demands for Auscotton products
The problem areas are known to have quite several effects. Firstly, there will be difficulties
being experienced in terms of transportation services most so when various products are being
moved from the areas where contract manufacturers are situated to the areas where there are
Evaluate the Effectiveness of the current ordering System_4

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