Case Study: Meditech Surgical

Mediated Surgical Overview Endoscopies surgical instrument maker Parents company: Largo Healthcare Company Spurned off 3 years ago Primary competitor: National Medical Corporation Same Development Strategies but different Sales Strategies Continuous development of old products continually & increase new product introductions National sells to surgeons Mediated sells to material managers, hospital & surgeons 0 Compete based on product innovations, customer service, cost IQ: What are the problems?

Shortage of new products introduction cause unbalanced supply and demand The accumulation of back order increase Increasing of lead time Cause poor delivery service Thus, creates customer dissatisfaction Demand Pattern of New Product Introduction SQ: What cause the problem? Systematically Have poor information system management. Rhea data collection is not aligned within different areas of organization.

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Lack of efficiency in the method used for data racking of previously forecasted months.

So they cannot check the possibility of “panic ordering” No system developed to track incoming demand, inventory & production rates Incorrect method in manufacturing strategies 0 Organizationally Forecasting problems on the demand of old and new products No specific person in charged on demand and forecast error Their current policy of 3 weeks demand safety stock is not relevant with old products due to continuously new product introductions

Proportioning their sales strategies in developing new products while neglecting customer satisfaction (not their priority) SQ: Why Customer Service Manager is the first one to address the issues? Customer service deals with EVERYTHING from customer complains to establishing strategies to improve delivery service. Works with dealers/ affiliates to keep them updated on delivery schedule and problems. As the person in charged, Dan Franklin will also be con acted TA directly by customers En there are questions regarding order ND problems like delays in product delivery.

SQ: How to fix the problems? Renewal of information database system Synchronize information system in all areas of organizations so that the data can be track easily. Improve the production plan of the products to synchronize with the customer orders.

Keep a systematic product inventory to handle existing and new orders Increase forecast accuracy of old and new products Develop relevant new policy regarding their safety stock High Inventory Level of Finished