ACME COMMUNICATIONS EQUIPMENT, INC CASE STUDY Identifying the Problems ACME Communications Equipment, Inc. appears to have a number of issues within their supply chain. ACME has one problem that is described as “considerable annoyance” to customers, their flawed order system. This is a huge issue that needs particular attention as the ordering process correlates directly with other problems ACME is facing. We will address this issue and others and attempt to correct the problems noticed. The order management system represents the principal means by which buyers and sellers communicate information relating to individual orders of product. According to the customer survey cited in the case, it appears the order process is the biggest
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This can be accomplished through the application of technology such as electronic data interchange (EDI) or the Internet. The application of technology will significantly reduce order errors. To the extent that ACME performs all activities relating to order management in a timely and accurate manner, it follows that other areas of company activity can be similarly coordinated.
ACME’s back-order performance is better than average. Customers know that back-orders from ACME will always be filled, even if it takes a couple of months. A more consistent back-order process would have a direct effect on delivery time and order fill rate. The back-order process can improve by effectively communicating within the supply chain, both upstream and downstream. The majority of stock out situations occur from customers arranging their own special promotions and not communicating the schedule to ACME’s logistics department. This issue can be resolved by simply communicating between parties.
Another issue arising is occasional errors when orders are being picked. The accuracy of picking can be affected by the company’s ordering process. There are ways to improve picking accuracy. Eliminating walking and reducing fatigue can lead to more accurate picks. Order pickers should spend more time picking than moving to picks, and that usually does not require facility redesigns. Inaccurate picking means