desired outcomes for Evergreen Products is to provide consumer satisfaction by
maintaining 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 bears
a negative effect on the company. As it is explained in the case, clerks record
the customer number on a sheet which creates issues in the form of inaccuracy
and inefficiency as soon as they record an error. Therefore, there is a need to
eliminate such constraints which limit the flow of activities and to enable a
flow of information.
A way to
resolve this loophole is to have Evergreen centralizing their order via an
electronic online system where customers would order their product online.
Customers will be then responsible for populating correct information digitally
regarding what they are willing to buy. It would remove bottlenecks and
increase productivity since it is a centralized and shared system between
customers and the shop floor. Sales account manager will view orders
instantaneously, and not wait to pick up the pile of orders once a day. It will
increase speed to the process. Since fewer people will connect the overall
process errors should diminish. Another way of thinking is that clerks should
put 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 more
rapidly than in the first or second process of the Evergreen case. Moreover,
the salesperson could also report to the system orders, instead of making
mistakes through the phone. Thus, when the top floor receives orders, they can
prepare them and correct any mistake. This patch should reduce by 15% the
issue. It would also eliminate the repeat process as soon as a clerk or
traveling salesperson perform an error.
We can observe
that the entry system is dysfunctional. 40% of the orders of the company suffer
from an error. Thus, the order system is not effective. For instance, for a
telephone placed an order to call the sales accounting manager will take half a
day to process it, and it takes between half a day to two days for employees to
liaise with sales accounting managers. The order entry system needs significant
improvement in order to improve the efficiency of the overall process.