Eagle Manufacturing Case Study

Posted: November 28th, 2013

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Eagle Manufacturing Case Study

I) Major Facts

1. Eagle manufacturing company has employed a qualified head of supply manager and they pay him a huge salary.
2. He works with a team of professional buyers, expediters and support staff.
3. The performance of the department is satisfactory.
4. Staff morale is down. One of the senior buyers has submitted his resignation for a better paying job with their competitor.

II)  Major problem

1. How will Ted improve his department’s performance so that it can have an impact on the company’s profitability?
2. How can Ted generate more co-operations with the other departments?
3. How can communication be improved among all departments for the smooth running of the company?
4. How can Ted ensure that the goods bought are of high quality?

III) Possible Solutions/Alternatives

A)    Ted has to get the best deals and highest quality goods and services at the lowest possible cost like in the case of the quality of papers and the purchase of the robot. He needs to study the sales records and inventory levels of the current stock so that they do not run out of parts as this had affected the operations and marketing departments. He has to identify a supplier who is competent while getting updates of any changes affecting both the demand and the supply of the products and materials. At the same time, he has to consider reliability, price, availability, quality and technical support when choosing a suppliers and merchandise.

B)     Ted has to verify that there are no loopholes in the agreements he enters into with contractors and suppliers of goods like the robot. He should have signed up the agreement and agreed on a price with Fenwick Electronics last year before the prices went up.

C)    The agreement they had entered into with the company that offers janitorial services was poorly described and had no enforceable specifications. Since Ted has, numerous contacts and two years industry experience, he will find a good price for services that are needed in the company. In addition, he has to use his strong negotiation skills to help him get contracts that will help the company increase their profits.

D)    One advantage Ted has is his work experience in the industry. The disadvantage he has is the he has to hire a new employee as a replacement for the one who left.

IV) Choice and Rationale

Solution A requires all employees in the purchase and supply department to work together. Solution B requires the managerial skills of Ted to be put into practice.

V) Implementation/The Action Plan

Ted will be required to boost the morale of the staff so that they do not leave the organization. The employees in the supply department will be required to have better working skills and improve their communication with other departments. Ted’s department should start immediately try to know when to order materials before they are out of stock. Everyone in Ted’s department should be aware of the quantity of goods needed and when deliveries are made from the supplier.  The supplies department should set a meeting with the supplier of the robot in order to negotiate the price. The organization should have set guidelines for purchasing of goods and services. Ted should ensure that all employees adhere to these guidelines. Ted should assist other employees towards cost optimization while purchasing goods and services needed by the organization.