Meditech

Meditech now is the main company that captured a majority of the endoscopic surgical instrument market. It manufactures the low cost and good price endoscopy surgical equipment for their customers. The strategy of Meditech’s rapid product development is to introduce flawlessly to protect Meditech’s reputation and sales of other products. Actually, it consistently failed to keep up with demand during the flood of initial orders.
Right now, the distribution operation of Meditech is sending products from central storage warehouse to domestic and international dealers or affiliates. It wants to offer good customer service and make customer satisfy; but the delivery time of surgical equipment is always delay, the process of manufacturing the equipment needs must long time, most of time is over six weeks; both of these make customers unsatisfied.
The main problems of Meditech right now exist on its current supply chain system, especially on the new product introduction and overall products production line. On average, Meditech launches one new product once per month; majority of the new products are directly upgraded based on the previous products. This might shorten the life-cycle of products, however; Meditech did not recognize that the demand dynamics impact along the product life-cycle. Due to Meditech did not take advantage on facing the problem; there has been a huge supply problem launching at every new. Due to the consistent shortage with each introduction, it turns out the sign of complaints and lowers the customer satisfaction level even there are no major problems in the internal operation. Apparently, the main problem in new products introduction is lack of communications between marketing and supply chain departments. The production line is influenced as new products are being introduced. The process backups the release of existing orders so that old and current customers’ orders are all delayed. General speaking, every time a product launches, Meditech