Susan Dey and Bill Mifflin, procurement managers at Avion Inc., sat across from each other and...
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Susan Dey and Bill Mifflin, procurement managers at Avion Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. Susan I do not believe what I am seeing. This supplier was clearly a star when we performed our supplier visits before awarding the contract for the new Amrod product line. Bill I am not pleased. I was on the team that performed the audit and site visit. Foster's management was so smooth-they indicated they could meet all our requirements. I feel like this supplier has misled us. Susan : Didn't you look at their processes and quality systems? Bill: Sure we did. Everything checked out fine. Now every other shipment has some problem, and the delays are hurting our ability to get our product to our customers. What really struck us about this supplier was how innovative they were. Foster's biggest drawback was their size- they lacked some depth at key manufacturing engineering positions. Maybe that is why they are having problems. It could be that someone has left the company. Susan: We are going to have to address these problems quickly. Bill: I will tell you what I am going to recommend. We should begin immediately to look for another supplier. I never was a fan of these single-source contracts. They leave us open to too much risk. Susan: But will that take a long time? Bill: Sure. We will have to perform another supplier search with team visits. New tooling could really cost, too. This could take months. Susan: Has anyone talked with the supplier about these problems? Bill: Kevin went over personally today and talked with the production manager. He did not have much time to explain, but he indicated on the phone that Foster's production manager said we should accept responsibility for a good part of the problems that are occurring! Susan Dey and Bill Mifflin, procurement managers at Avion Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. Susan I do not believe what I am seeing. This supplier was clearly a star when we performed our supplier visits before awarding the contract for the new Amrod product line. Bill I am not pleased. I was on the team that performed the audit and site visit. Foster's management was so smooth-they indicated they could meet all our requirements. I feel like this supplier has misled us. Susan : Didn't you look at their processes and quality systems? Bill: Sure we did. Everything checked out fine. Now every other shipment has some problem, and the delays are hurting our ability to get our product to our customers. What really struck us about this supplier was how innovative they were. Foster's biggest drawback was their size- they lacked some depth at key manufacturing engineering positions. Maybe that is why they are having problems. It could be that someone has left the company. Susan: We are going to have to address these problems quickly. Bill: I will tell you what I am going to recommend. We should begin immediately to look for another supplier. I never was a fan of these single-source contracts. They leave us open to too much risk. Susan: But will that take a long time? Bill: Sure. We will have to perform another supplier search with team visits. New tooling could really cost, too. This could take months. Susan: Has anyone talked with the supplier about these problems? Bill: Kevin went over personally today and talked with the production manager. He did not have much time to explain, but he indicated on the phone that Foster's production manager said we should accept responsibility for a good part of the problems that are occurring!
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1 Parts of the Supply Chain Involved and Responsibilities In this case various parts of the supply chain are involved Procurement Managers Susan Dey Bill Mifflin Kevin ODonnell Responsible for supplie... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
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