KERSIA CASE STUDY Help
How can Kersia continue supply while maintaining creditability, increasing volumes all the while keeping costs to an acceptable level?
There are various key elements that could work as the strength of Kersia Ireland’s supply chain, such as: relentless investment, innovation, optimum inventory planning and management, multi-level supply chain, supplier code of conduct, product development,robotics technology andlogistics options. As the T&G does not provide on-time delivery, it could create a domino effect that could put the growth & success of the company at stake. Furthermore, the company could not end up a contract for suppliers for a number of reasons including an increase in the production cost, lack of expertise and knowledge and so forth. It should have effective terms in the contract to make sure that the issues related to performance are promptly solved without any requirement of terminating the contract with T&G. It might also include requirements for the continuity of the project, service level and benchmarking, along with suitable financial credit for the failure in order to meet the level of service. The company should include T&G in the quality management process as well as in production, so that T&G would accept the responsibility for the satisfaction of the end-users or customers.
The company should conduct the supplier quality audits to ensure that its products that are supplied by T&G meet the pre-defined performance, quality specifications and quality standards. The company should motivate the suppliers for on-time deliveries. It should send improvement requests to T&G once per month. It should also explain T&G about how more flexibility in cash could allow it to grow the order volumes. Taking a relationship with support to the next level is mandatory for the company in order to look for value-added future contracts with T&G as well as to create an effective and streamlined supply chain. Lastly, the company should offer benefits to suppliers in order to make them motivated and enthused to satisfy customer needs. By doing so, the company would be able to generate more value for the business through improving the credibilityand reputation of the company, reducing the cost incurrence, strengthening the overall quality of the product, and driving superior performance of thebusiness operations………………….
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