Avion, Inc. Case - Purchasing & Supply Chain Management

1649 Words7 Pages
Avion, Inc. 1. The different parts of the supply chain or value chain's departments associated with this problem are as follows: a. Avion, Inc. - Materials Management i. Their responsibility is to ensure that Production has enough material to meet manufacturing quota. They need to manage the relationship with suppliers and identify new suppliers if necessary. b. Avion, Inc. - Production i. Their responsibility is to produce the goods ordered. If they are running short on supply, or have a change in how quickly supply is required, they need to communicate their requirements to the Materials Management group. c. Foster Technologies - Production i. Their responsibility is to produce the materials Avion, Inc. requires to produce their goods per their contract. If they cannot fill Avion's materials orders in the time requested they need to communicate with Avion's Materials Management group. 2. Problem: a. Initial Problem: i. The initial problem appeared to be Foster's inability to meet Avion's materials supply per their contractual obligation. ii. It looked like Foster's had misled Avion and were not able to produce what they said they could. iii. It also looked like Foster's was trying to push the blame on Avion for their poor production. b. Actual Problem: i. Avion under represented their actual need during the initial supplier review. ii. Avion also switched from requiring the materials within two weeks to 10 days. iii. Finally, Avion ignored or disregarded multiple attempts Foster's made to contact them regarding this issue. c. Potential Root Issues: i. Poor materials forecasting - For whatever reason, unexpected demand for

More about Avion, Inc. Case - Purchasing & Supply Chain Management

Open Document