Executive Summary- 1-2 pagesThe following system changes are recommended to address described inefficiencies in current supply chain processes. The changes are designed to take advantage of available technology to transform or replace current systems and processes for long term cost savings and improved customer satisfaction. These changes will produce improvement in timeliness of inventory updates and order accuracy which will result in increased customer satisfaction. The current Inventory and Control Processes at Riordan Manufacturing were reviewed in three primary categories; raw materials receiving, manufacturing with inventory, and final product shipping. Inventory reconciliation was considered as well.
Raw Materials Receiving- During this process raw materials from suppliers are received at the receiving area throughout the day. The receiving supervisor reconciles the shipment with the anticipated shipment schedule expected to be received. The product is then moved to the factory. At the end of the day the raw materials received are entered into the inventory system by an inventory clerk.
Inefficiencies include the manual intensity of checking shipping orders with scheduled orders, the hand off to the inventory clerk, and the time lapse before the products are visible in the inventory system.
Manufacturing with Inventory- As raw materials are taken from inventory a form is completed to record what parts were removed. The forms are given to the inventory clerk to update the system. As the manufacturing team builds sub-assemblies and products they record the inventory on forms that are submitted to the inventory clerk for entry into the system. Inefficiencies include the use of paper forms and the time delay between use and entry into the system.
Final Product Shipping- As customer orders are received via phone or fax they are entered into the shipping and billing system. The shipping/billing system generates a shipping order to have the product loaded into...