Case Study: Meditech Surgical
Case Study:
Meditech
Surgical
Overview
Endoscopic
surgical instrument maker
Parents company: Largo Healthcare Company
Spunned
off 3 years ago
Primary
competitor: National Medical
Corporation
Same
Development Strategies but different Sales
Strategies
Continuous development of old products continually & increase new product introductions
National sells to surgeons
Meditech sells to material managers, hospital & surgeons
Compete
based on product innovations, customer service, cost
Q1: What are the problems?
Shortage
of new products introduction cause unbalanced supply and demand
The accumulation of back order increase Increasing of lead time
Cause poor delivery service
Thus, creates customer dissatisfaction
Demand Pattern of New Product
Introduction
Q2: What cause the problem?
Systematically
Have poor information system management.
The data collection is not aligned within different areas of organization.
Lack of efficiency in the method used for data tracking of previously forecasted months. So they cannot check the possibility of “panic ordering”
No system developed to track incoming demand, inventory & production rates
Incorrect method in manufacturing strategies
Organizationally
Forecasting problems on the demand of old and new products
No specific person in charged on demand and forecast error
Their current policy of 3 weeks demand safety stock is not relevant with old products due to continuously new product introductions Prioritizing their sales strategies in developing new products while neglecting customer satisfaction (not their priority)
Q3: Why Customer Service Manager is the first one to address the issues?
Customer
Service deals with EVERYTHING from customer complains to establishing strategies to improve delivery service.
Works with dealers/ affiliates to keep them updated on delivery
Meditech
Surgical
Overview
Endoscopic
surgical instrument maker
Parents company: Largo Healthcare Company
Spunned
off 3 years ago
Primary
competitor: National Medical
Corporation
Same
Development Strategies but different Sales
Strategies
Continuous development of old products continually & increase new product introductions
National sells to surgeons
Meditech sells to material managers, hospital & surgeons
Compete
based on product innovations, customer service, cost
Q1: What are the problems?
Shortage
of new products introduction cause unbalanced supply and demand
The accumulation of back order increase Increasing of lead time
Cause poor delivery service
Thus, creates customer dissatisfaction
Demand Pattern of New Product
Introduction
Q2: What cause the problem?
Systematically
Have poor information system management.
The data collection is not aligned within different areas of organization.
Lack of efficiency in the method used for data tracking of previously forecasted months. So they cannot check the possibility of “panic ordering”
No system developed to track incoming demand, inventory & production rates
Incorrect method in manufacturing strategies
Organizationally
Forecasting problems on the demand of old and new products
No specific person in charged on demand and forecast error
Their current policy of 3 weeks demand safety stock is not relevant with old products due to continuously new product introductions Prioritizing their sales strategies in developing new products while neglecting customer satisfaction (not their priority)
Q3: Why Customer Service Manager is the first one to address the issues?
Customer
Service deals with EVERYTHING from customer complains to establishing strategies to improve delivery service.
Works with dealers/ affiliates to keep them updated on delivery