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AVION INC SUPPLY CHAIN CASE STUDY

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Avion Inc Supply Chain Case Study

Supply chain parts and their responsibilities

From the case study, the supply chain parts closely involved are Procurement managers

and the production and Material Management teams.

Procurement managers are responsible for finding reliable suppliers and negotiating and

managing any contracts that may arise. They are accountable for choosing reliable vendors and

drafting agreements outlining all the details, such as production quotas, delivery schedules, and

contact information. The production team is in charge of monitoring production and making

required adjustments to fulfill demand. They tell the supplier the quantity necessary and the

quantities to maintain a continuous flow of materials. The material Management team

coordinates the flow of commodities throughout Avion Inc.'s supply chain. They are responsible

for reacting to suppliers' complaints about changes in production rates and order quantities.

Initial problem and the problems in this case

Initially, the problem appears to come from the supplier. Susan and Bill, Avion Inc.'s

procurement managers, are concerned about the quality and timeliness of Foster Technologies'

products. However, it becomes evident that there are several other problems; (1) the production

requirements and capabilities considerations. The production team at Avion Inc. had projected a

monthly output of 2,500 units, but that number boosted to more than four times that amount, at

over 4,000 units; (2) Second, there was a failure to communicate clearly. Foster Technologies

was expected to receive operational challenges from Avion Inc.'s materials management team,

but the group failed to do so, leaving Avion Inc. in the dark about any required production

modifications; (3) there was an insufficient investigation of suppliers. Foster Technologies

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appeared inventive and competent during early supplier visits; however, the purchasing team

from Avion Inc. did not adequately analyze the supplier's competence to handle changes in

production requirements.

Switching suppliers and the ability to switch to a new supplier

Changing suppliers is not always easy for a company. Many factors can hinder a

corporation from switching providers: (1) Selecting and evaluating. Potential suppliers require a

firm to research and interview several candidates to select an effective new supplier. Any firm

must identify potential suppliers and assess their capabilities (Taherdoost & Brard, 2019); (2)

switching providers will likely increase your costs. The organization must assess the possible

financial consequences and ensure that the long-term benefits outweigh the costs; (3) ensuring

consistency in manufacturing and process is essential. Vermunt et al. (2019) state an organization

must ensure the new supplier can integrate easily into the present production procedures. The

company's manufacturing systems and processes may need to be modified to facilitate the

relocation.

In conclusion, Avion Inc. illustrates the need for open lines of communication, supplier

evaluation, and collaborations to sustain a reliable supply chain. Although the supplier's poor

performance drew instant attention, underlying issues such as manufacturing needs and

inadequate communication were discovered. Supplier transitions are complicated because of the

need for evaluation, costs, and manufacturing processes. Avion Inc. must develop relationships

with suppliers, better match requirements with their capabilities, and improve communication to

ensure a regular flow of products and overall supply chain success.

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References

Taherdoost, H., & Brard, A. (2019). Analyzing the Process of Supplier Selection Criteria and

Methods. Procedia Manufacturing, 32(32), 1024–1034. sciencedirect.

https://doi.org/10.1016/j.promfg.2019.02.317

Vermunt, D. A., Negro, S. O., Verweij, P. A., Kuppens, D. V., & Hekkert, M. P. (2019).

Exploring barriers to implementing different circular business models. Journal of

Cleaner Production, 222, 891–902. https://doi.org/10.1016/j.jclepro.2019.03.052