Avion Case
What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material?
They are Foster Technologies as the supplier, and Avion, Inc. as the buyer.
To maintain a smooth flow of material, it is the supplier’s responsibility to comply with the buyer’s requirements and standards, and provide the correct quality and quantity of product and service in a timely manner. On the buyer’s end, responsibilities include: to work internally within organization to determine organizational needs, to develop requirements and standards for the supplier, to select the right supplier, to comply with the supplier’s requirements (making on-time payment etc.), and to overlook the supplier’s performance.
What initially appears to be the problem? What really is the problem(s) in this case?
The problem initially appears to be lacking of material quality and delayed delivery caused by the poor performance and communication from the supplier, Foster Technologies. The real problem in this case is caused by extremely poor planning, ineffective communication, lack of alternative supplier sources and unsuitable organizational structure within Avion, Inc.
How easy is it to switch suppliers? What could complicate a firm’s ability to with to a new supplier?
It is not easy to switch supplier at all, especially when a firm has never prepared any alternatives/candidate suppliers.
Depending on the type and quantity of products needed, and required delivery time, it might be less easy for a firm to switch. For example, time constraint and/or large demand will significantly narrow down possible suppliers to switch to; and a special product that requires customized machinery or tools in the production process, will also complicate the switch.
What does it mean to get to the root cause of a problem?
It means to not only to fix the problem at the moment, but also to develop a solution and
They are Foster Technologies as the supplier, and Avion, Inc. as the buyer.
To maintain a smooth flow of material, it is the supplier’s responsibility to comply with the buyer’s requirements and standards, and provide the correct quality and quantity of product and service in a timely manner. On the buyer’s end, responsibilities include: to work internally within organization to determine organizational needs, to develop requirements and standards for the supplier, to select the right supplier, to comply with the supplier’s requirements (making on-time payment etc.), and to overlook the supplier’s performance.
What initially appears to be the problem? What really is the problem(s) in this case?
The problem initially appears to be lacking of material quality and delayed delivery caused by the poor performance and communication from the supplier, Foster Technologies. The real problem in this case is caused by extremely poor planning, ineffective communication, lack of alternative supplier sources and unsuitable organizational structure within Avion, Inc.
How easy is it to switch suppliers? What could complicate a firm’s ability to with to a new supplier?
It is not easy to switch supplier at all, especially when a firm has never prepared any alternatives/candidate suppliers.
Depending on the type and quantity of products needed, and required delivery time, it might be less easy for a firm to switch. For example, time constraint and/or large demand will significantly narrow down possible suppliers to switch to; and a special product that requires customized machinery or tools in the production process, will also complicate the switch.
What does it mean to get to the root cause of a problem?
It means to not only to fix the problem at the moment, but also to develop a solution and