Case Study: Avion, Inc.

997 words 4 pages
1. What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material?
It is no doubt that the ultimate problem rising in the case is miscommunication. Communication is utmost vital for both parties – purchasers and suppliers- to interact effectively, hence, to conduct business smoothly. On the other hand, it is also a lack of competency of Avion, Inc.’s procurement managers as they were unaware of such obvious changes in volume and delivery time required for operation though they deal with the flow of material on a day-to-day basis. They could not identify the problem, but also did not even bother initiating inquiries with
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It provides the metrics to monitor the progress, to assess the effectiveness and efficiency of the on running process, to evaluate how well the firms handle its business in terms of speed, inventories, sales, customer satisfaction, etc. Weaknesses would be easily spotted and fixed quickly when arise.

7. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?
Changes within a supply chain can disrupt the normal flow of goods and services within a supply chain. Nowadays firms are interdependent, creating a dynamic supply chain. If one failed to perform its task, other components in value chain would also get affected. Anything from miscommunication, political instability, “acts of God”, technical problems, terrorism, just to name a few, can jeopardize the continuity of supply chain.

8. Why might Avion want to reduce the lead times on its purchased materials and components?
Avion might want to reduce the lead times on its purchased materials and components so it will have more time for production, so as to fulfill more orders from the customers in a shorter time manner. This leads to a more efficient supply chain helping the company to gain competitive advantage so it can enjoy more profit down the road.

9. Why do firms single source contracts?
There are several reasons why firms single source contracts. It

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