Two years ago, the purchasing management at Anderson Plastics had been a non-centralized function which causes problems with the inventories, stock outs, and etc. One day his boss got angry because of their plant had run out of raw materials. He has been wondering how he could address the problem. Although he had created a spreadsheet to help him monitor the supplies, it seems to be not working because they still experience such stock outs and etc. II. View Point
The case simply tells us that Anderson Plastics has problems with their purchasing although it is really not Roger Grays fault.
III. Statement of the Problem
The problem with Anderson Plastics Inc. is that the purchasing department is unorganized, and they have not figured out yet the best way to monitor their inventories, which causes stock outs of materials.
* To improve the purchasing management of Anderson Plastics. * To provide alternative ways on how to solve the purchasing management of Anderson Plastics.
V. Areas of Consideration (S.W.O.T.)
* It is already a multinational supplier of plastic compounds. * Has been in the industry for a long time already. * Operates 13 manufacturing plants. * Has a lot of human resources because they employ approximately 2,200 employees worldwide.| * Unorganized purchasing management. * Has a high risk of stock outs.| OPPORTUNITIES| THREATS|
* They could use other modes of transportation other than the railway. | * Competitors who could provide orders in a better way.|
VI. Alternative Course of Action
1. They could add some staff to the purchasing department because it is stated in the problem that the plant had expanded and the number of products has increased from 250 to 550 and Roger Gray is the only real real purchasing agent for the company. Advantage: they could...