Case Study: Meditech Surgical

Topics: Forecasting, Customer service, Surgery Pages: 4 (355 words) Published: April 18, 2014
Case Study:

 Endoscopic

surgical instrument maker
 Parents company: Largo Healthcare Company
 Spunned

off 3 years ago

 Primary

competitor: National Medical
 Same

Development Strategies but different Sales
 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
 Increasing of lead time
 Cause poor delivery service
 Thus, creates customer dissatisfaction

Demand Pattern of New Product

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
 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...
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