Case of the Rewired Supply Chain Study Example | Topics and Well Written Essays - 1500 words

Of the Rewired Supply Chain - Case Study Example The inventory problems are exacerbated by the fact that communication is disorganized and may not consist of real time communications. This lack of real time information is particularly problematic in an industry where inventory moves quickly. This lack of real time information sharing can increase supply cost unnecessarily. For example, a plant running short of supplies may communicate this shortfall to headquarters while another plan with excessive supplies may not communicate the excessive supplies to headquarters on time or too late to have any benefit to the business. As a result, the business is bound to purchase supplies for the plant that has a shortfall and increase inventory unnecessarily when the same supplies are available at another plant. To this end, it has been reported in the literature that real time information serves two primary purposes: processing an order to the customer’s satisfaction and sharing inventory data â€Å"quickly† throughout the supply chain (Cachon & Fisher, 2000). Relying on information exchanges between the four plants and headquarters through facsimile and email communications have proven to be inadequate for facilitating real time information sharing objectives. There is significant room for improvement through information technology which allows for the sharing of information between the four plants and headquarters â€Å"quickly and inexpensively† (Cachon & Fisher, 2000, p. 1032). The use of facsimile and email information sharing between the four plants and headquarters is complicated by the confusing reporting system adopted by the staff at headquarters. Information technology can be adopted for resolving all of these problems and especially the problem with forecas ting and planning. A lack of coordinated and shared metrics for measuring inventory and manufacturing process and effectiveness is also problematic. This is especially important for management at headquarters