?What initially appears to be the problem?

What is really the problem(s) in this case

The initial problem seemed to be the supplier's poor performance regarding delivery dates and quality
.requirements

.But is that really the problem here? Let's investigate the roots

1- Increase in demand and supplier capacity.

Currently, the Production group requests monthly orders of 4,000 units with a 10-day lead time, while
the supplier's contract covers 2,500 units with a 2-week lead time. The supplier's capacity stands at
3,500 units, which leads to quality issues and delays.

2- Bad communication between the supplier and Avion.

The supplier has sent many letters addressing the problem, but there has been no response from :
.Avion. Additionally, last-minute changes in quantities before delivery boost the issue

Who are the key stakeholders in case? If this going to be an on-going problem of increased sales,
?what other stakeholders might you consider talking to

The key stakeholders here are the material management team, the production manager and
.procurement team from Avion side, and the production manager from the supplier side

If this will be an ongoing problem of increased sales we need to talk to Avion sales department and the
.demand planning team

.Develop an action plan for Avion that address the issues presented in this case

:The solution here is divided into short-term and long-term as follow

In the short term, we must temporarily find a solution to fulfill our customer orders without sacrificing
quality. We can start by meeting with all stakeholders to manage this problem. Possible solutions
include:

1- Collaborating with the supplier to implement additional shifts and overtime to meet the
increased volume of 4,000 units.
2- Adjusting our orders to align with the supplier's maximum capacity of 3,500 units. This may
involve working closely with the sales and steering team to batch deliveries to our customers if
possible.
3- Exploring the option of identifying a new supplier to bridge the 500-unit gap between our orders
and the current supplier's capacity.

In the long term, Avion should focus on:

1- Developing a performance measurement and supplier management system, recognizing that

procurement responsibilities extend beyond supplier evaluation and awarding.
2- Establishing effective communication channels between the supplier, internal customers, and
the procurement team.
 3- Develop demand planning and forecasting processes, with frequent reviews to anticipate
increased demand accurately.
4- Considering supplier capacity and their ability to handle and increased in demand when
evaluating and awarding contracts.
5- Exploring the possibility of diversifying suppliers to reduce the risk of a single source, especially
if high demand continues, minimizing the risk of supplier failures.

:Paragraph 1

What initially appears to be the problem, and what is the actual issue in this case? The initial problem
seemed to be the supplier's poor performance concerning delivery dates and quality requirements. But
.is that truly the core problem here? Let's delve into the underlying causes

An increase in demand and supplier capacity: Currently, the material group receives monthly orders of
4,000 units with a 10-day lead time requirement, while the supplier's contract covers 2,500 units with a
.2-week lead time. The supplier's capacity stands at 3,500 units, leading to quality issues and delays

Insufficient communication between the supplier and Avion: The supplier has sent numerous letters
addressing the problem, but there has been no response from Avion. Additionally, last-minute changes
.in quantities before delivery compound the issue

:Paragraph 2

Who are the primary stakeholders in this case? If the problem of increased sales persists, who else
?should we engage with

Key stakeholders include Avion's material management team, production manager, and procurement
team, as well as the supplier's production manager. If the challenge of increased sales continues, it
.would be prudent to involve Avion's sales department and the demand planning team

:Paragraph 3

Outline an action plan for Avion to address the issues presented in this case. The solution should
.encompass both short-term and long-term strategies

In the short term, our priority is to find temporary solutions to meet customer orders without
compromising quality. We should convene a meeting with all stakeholders to address the issue. Possible
:short-term solutions include
Collaborating with the supplier to implement additional shifts and overtime to meet the increased
.volume of 4,000 units

Adjusting our orders to align with the supplier's maximum capacity of 3,500 units. This may involve
.working closely with the sales and steering team to batch deliveries to our customers

Exploring the option of identifying a new supplier to bridge the 500-unit gap between our orders and the
.current supplier's capacity

:In the long term, Avion should focus on

Developing a performance measurement and supplier management system, recognizing that

.procurement responsibilities extend beyond supplier evaluation and awarding

Establishing effective communication channels between the supplier, internal customers, and the
.procurement team

Enhancing demand planning and forecasting processes, with regular reviews to anticipate increased
.demand accurately

Considering supplier capacity and their ability to handle surges in demand when evaluating and
.awarding contracts

Exploring the possibility of diversifying suppliers to reduce reliance on a single source, especially if high
demand persists, minimizing the risk of supplier failures.