Pain in the Chain
Exceso is a taken from a Harvard Case Study. In reference to the four assigments we want to present our analyze. The Case study describes the situation of Exceso, which is a manufacture and the supply chain of Exceso. The Situation shows that they are obviously in trouble. In the following we try to summarize their problems. As the manufacture in the supply chain they have many different problems. It seems to be that they have over-ambitious sales targets, which affected the whole supply chain process. Furthermore Exceso heavily discounting their products in order to increase their customer base.
Perhaps that leads to more trouble in the next period. “If we go with deeper discounts, we’ll move more product. Duh! But it’s not going to sell through. It’ll end up in their warehouse. We know that. ” This quotation shows that Exceso could have problem to increase their turnover in the next period because the market is saturated. Based on your analysis we want to offer some solutions in order to improve the situation of Exceso. We try to provide a suggestion on an optimal supply chain design. As a start Exceso have to change their output obsessed outlook and shall adhere to their customers’ demands.
All participants in the supply chain have to work together. They need a collaborative, planning system. This involve a strong tie relationship between Exceso and their distributors. Furthermore they have to work out a shared interest business plan. They have to amalgamate their forecasts, where possible. Finally they need a demand-based product mix planning. How could be this aims be achieved? What is necessary to be done for implementing your suggestion? In our opinion they could implement an electronic data interchange system (EDI) for example a supplier – portal based on an internet-platform.
EDI is very useful in the supply chain because it helps to structure the information flow. Moreover the communication with EDI leads to more speed in which trading partner receives and incorporates the information in comparison to paper documents. Likewise it could reduce errors such as shipping an billing errors. Finally it will hopefully keep disparities between over- and underproduction to a minimum. Sharing information could replace high stocks and perhaps they are able to handle increasing demands.