desired outcomes for Evergreen Products is to keep a satisfying quality, lower
lead time and decrease inventory in order to satisfy consumers demand.
Evergreen should wish to have accurate and timely entry orders in the system.
However, this is the bottleneck in the supply chain in our case. Indeed, the
challenging point for the company 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.
A way to
resolve this loophole is to have Evergreen centralizing their order via an
electronic 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.