Thedesired outcomes for Evergreen Products is to provide consumer satisfaction bymaintaining good quality, lowering lead time and decreasing inventory.
Evergreen should wish to have accurate and timely entry orders in the system.However, this is the bottleneck in the supply chain of Evergreen Products.Indeed, the challenging point for them is their order entry system which bearsa negative effect on the company. As it is explained in the case, clerks recordthe customer number on a sheet which creates issues in the form of inaccuracyand inefficiency as soon as they record an error. Therefore, there is a need toeliminate such constraints which limit the flow of activities and to enable aflow of information. A way toresolve this loophole is to have Evergreen centralizing their order via anelectronic online system where customers would order their product online.Customers will be then responsible for populating correct information digitallyregarding what they are willing to buy. It would remove bottlenecks andincrease productivity since it is a centralized and shared system betweencustomers and the shop floor.
Sales account manager will view ordersinstantaneously, and not wait to pick up the pile of orders once a day. It willincrease speed to the process. Since fewer people will connect the overallprocess errors should diminish.
Another way of thinking is that clerks shouldput orders directly to a system shared with members of the supply chain. Thus,sales account manager would be in a position to review and report errors morerapidly than in the first or second process of the Evergreen case. Moreover,the salesperson could also report to the system orders, instead of makingmistakes through the phone. Thus, when the top floor receives orders, they canprepare them and correct any mistake. This patch should reduce by 15% theissue. It would also eliminate the repeat process as soon as a clerk ortraveling salesperson perform an error. We can observethat the entry system is dysfunctional.
40% of the orders of the company sufferfrom an error. Thus, the order system is not effective. For instance, for atelephone placed an order to call the sales accounting manager will take half aday to process it, and it takes between half a day to two days for employees toliaise with sales accounting managers. The order entry system needs significantimprovement in order to improve the efficiency of the overall process.