hgStatement of the Problem: A new division manager is called upon to make some changes in the Test Equipment Division so that supply chain management is more effective and efficient.
Background: Originally the supply chain manager was placed under authority of the production manager who lacked the knowledge and twenty years’ experience of the supply chain manager. In addition the marketing manager had authority over the supply chain manager concerning specialty products that were usually made based on customer specifications. The marketing manager did not consult the supply chain manager when working with suppliers which produced some tension and avoidance between the two.
Discussion: The supply chain manager is a very crucial position in order for the Test Equipment Division to be successful. Its primary function is not to “see that production had what in needed when it needed it” but to view the division as a whole. The production manager and the marketing manager need to work with the supply chain manager in order to get things done more efficiently and effectively. The supply chain manager has experience in production, engineering, and supply and will make helpful contributions concerning these aspects in the division. This will reduce costs by ordering efficiently and resolving contract complications.
Recommendations: If the supply chain manager works directly under the division manager to overlook the Test Equipment division then we will see higher profits as a result of lower costs. The production manager and the marketing manager are advised to work with the supply chain manager to avoid making harmful decisions for the company without proper consultation.