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Supply Chain Reengineering: A Case Study
Abstract
This chapter describes a debacle that occurred when a large assembler of fast moving consumer electronics commissioned the set up of a new supply chain. Four key players undertaking five processes were involved. These companies planned to operate sell-buy relationships. Upon starting to ramp-up of the first product component sets, it became clear that companies did not trust their successors to pay for all goods delivered. Similarly, suppliers were not trusted to deliver perfect goods. Companies receiving component sets refused liability for damage or defects introduced by companies further up the supply chain. A remedial quick-fix using centralised inspection at the principal supplier soon was adopted to facilitate supply of complete sets of mechanical parts to the assembler. Significant similarities exist between the case study supply chain and the concepts used in business process reengineering. The chapter identifies stages undertaken to improve an inbound supply chain for complex plastic mouldings assemblies. The principal research methods used were participant-observer and action orientation. All company names have been disguised to comply with confidentiality agreements. The author was a Logistics Project Leader during the period of this research. He acted as an internal consultant for Alpha Co, with responsibilities for encouraging new product development teams to modify the products to take into consideration ‘design for logistics’ concepts.
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