Supply Chain Management Issues

Based on the case study for Oregon production facilities there are certain problems that are realized and that should be addressed in order for the supply chain to run smoothly and to avoid some of the problems that come up as a result of poor supply chain management.

There are three facilities that should be properly coordinated in the organization since they are all related and operations within one facility have direct effect on the other facilities. Some of the problems that are experienced in the organization are related to poor materials inventory management, communication and coordination between the three facilities, poor order entry process as well as poor management that is revealed through supervision of the different processes within the facilities.

In order to solve these problems information transfer among the facilities should be coordinated and fast. This is because some of the problems like delay and production shut downs are as a result of poor communication. In the case whereby facility T and P waited for inventories from facility S, which facility S claimed to have sent to these facilities and yet they were not received, they were later found in a container outside. These shows poor information transfer among the facilities and at the same time reveals weaknesses in supervision department since they should have ensured that the inventory from facility S reached the two facilities and handed over to the facilities. (Trkman, Stemberger & Jaklic, 2009)

The organization should come up with a supply chain system that will help in reducing some of these problems experienced. Though there is argument that tone of the facilities practices just in time system it can not work out effectively if all the facilities do not have similar type of system. In order to solve some of these problems it is important that all the facilities have similar system because for the activities to be coordinated properly. (Bates, 2006)

The other important factor that should be considered is the proximity between the facilities. This is because when facilities are close there are certain problems that are avoided. The first thing is that the transportation cost will be minimized as well as costs of inventories may be minimized since it can be easier to practice just in time system. One of the solutions to the problems experienced in the organization is the practice of cellular production whereby all the resources that are required to complete production of a product are grouped together. (Bates, 2006)

In order for the supply chain to be effective and to benefit an organization or department there are certain things that are very important and that should be looked into. The information flow within the organization and departments should be effective, this is because the supply chain in usually coordinated by effective communication of information from one department to the other. (Trkman, Stemberger & Jaklic, 2009)

The other important factor is inventory controls that are used within that organization or department should be effective in that there should be clear and accurate records of inventories at hand, in the production and that are needed in different departments for production. This is to ensure that some of the problems that come up as a result of poor inventory management are avoided. For instance low production or even production shut downs can occur. (Burbidge, 2008)

The other factor that may affect production and the supply chain within an organization is the process of order entry. At times if the process is not effective and accurate it means that will be transferred to each and every other department in the organization. For instance when material order are not in accordance to the requirements in other departments that rely on the materials for production it means that there will be delays in production in other departments and at the same time the production may not be sufficient or in accordance to the requirements. (Burbidge, 2008)

After going through the challenges that the organization has been going through an action plan was developed to guide implementation of recommendations that were suggested. The guiding principle of the action plan is based on preventing the source of the problem rather than trying to solve it, this is because when the source of the problem is dealt with it means that the problem will no longer come up.

The challenges experienced are mostly in areas of communication, material and inventory control management, order placement and supervisory. Since the problem areas have been identified and the areas that need immediate action then implementation of the recommendations are possible.

Objectives, goals and targets

The main objectives, goals and targets of the action plan are to come up with action lines that will help eliminate completely the problems that are experienced in the organization. After the action lines have been identified then implementation process of the action lines is going to take place.

Action lines

  1. To build effective information system. One of the major problems that have been realized in the case study is the issue of communication; under such a situation where there are many facilities working under one firm communication and information coordination is very important. In order to enhance effective communication to avoid some of the problems that arise there is need of setting up an effective information system that will be coordinated in all facilities and departments hence avoiding problems of delay and many others. (Trkman, Stemberger & Jaklic, 2009)
  2. Development of efficient materials and inventory controls within the organization. When inventory controls are poor in an organization there are many problems that arise for instance, stock outs and even overstocking which are very costly for the organization. The organization can come up with a system that involves all the facilities and all the materials and inventory controls should be carried out in one department. This is to ensure that everything is coordinated properly and there are no stock outs at any one facility since this will affect the general production in the organization hence failure. (Bates, 2006)
  3. Improve management system within the organization. The management system is very essential since all the activities that are carried out in the organization originate from the management. If the management is poor it means that everything else will not be carried out properly in the entire organization. Supervisory is under management and should be organized and managed properly. The number of supervisors should be added and trained properly since is out of this some of the problems in the organization will be avoided. There should also be proper coordination within the organization since when there is proper coordination some of the major problems of communication and delays will be avoided. (Trkman, Stemberger & Jaklic, 2009)
  4. Order entry process should be coordinated within the organization and among all the facilities. If possible it should be computerized such that the order information can be transferred very fast among all the facilities. It should then be coordinated from one point in order to avoid poor order information. (Burbidge, 2008)


Implementation of all these action lines will help the organization in coordination of all the facilities within the organization. At the same time all the problems that are experienced in the organization will be avoided hence the organization will be a better working place and the general production will be improved.

List of references

Bates S, (2006), The manufacturing systems, Cellular manufacturing. Web.

Burbidge J, (2008) production flow analysis. Web.

Trkman P, Stemberger M.I, and Jaklic J. (2009) Information transfer in supply chain management. Web.

Find out your order's cost