surgical instrument maker
Parents company: Largo Healthcare Company
off 3 years ago
competitor: National Medical
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?
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?
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
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?
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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