The supply chain needs to be analyzed to understand why improvements have to be done.
In fact, the chain is totally backlog and need to be more efficient.
To improve and to increase the supply chain there are many points we can highlight to be more efficient:
- There is a problem of information between the three players of the distribution channel.
The brewery is not even aware of the video song mentioning lover’s beer until week 3. The fact they had not been able to watch the week before week 6 shows a serious lack of reactivity and caused a real delay in the production chain.
- The problem of reactivity is even more important because even in week 14, the factory had still not caught up with its orders. If the retailer does not inform the brewery that there is an increase of the sales immediately, this causes an even bigger delay in the transmission of different orders.
- The production organization seems to be too slow. In fact, two weeks are needed to get a bottle of beer ready for shipment and four weeks to deliver the wholesaler.
- Their system seems to be closer to a “built to stock” model than a “built to order” one. They always have a security inventory level with approximately 12 gross. This system fits to a steady market and not to a fluctuating one.
- The lack of anticipation is a result of the failure of the implementation of the “built to order” system. This is reliable on the fact that they did not imagine the fact that the increase could have been constantly rising.
- For communicating, they just use numbers onto a form. This is revealing of a problem of communication thorough the different players. They don’t know each other and have never met nor talked on the phone.
- Finally, the distribution and marketing manager report the fault on the wholesaler insisting on the fact that they have too many truckloads inventory and does not put...