Hunt Co.: Struggles of Outsourcing & Change Management - Essay Sample

Introduction

Hunt Company is privately owned, and it supplies office and graphics. It used to manufacture and source its products. However, recently, the company decided to outsource and manufacture its highly valued products from China and to use other low-cost offshore supplies. The decision has incurred numerous problems within the company, including long lead times due to new sourcing. Also, it has brought strain within the organization because of change (Bresnahan, 2005). The paper entails the Hunt Company's major problems, their solutions, and their rationale, and the steps that should be taken to implement the new strategy.

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The Major Problems facing the Hunt Company

Every decision has its benefits and challenges faced once the decision is made. Long lead times due to new sourcing. It took a long time for the company's orders to arrive at the shipping dock, which could take days or weeks. On the other hand, manufacturing took an estimate of around 95days. With an increased number of days came the increase in inventory and overnight charges (Bresnahan, 2005). The long lead times led to the forecasts that were not quite accurate, which led to difficulties in the management of unplanned spikes on demand. Additionally, the long lead times led to the increment of inventories and a lack of efficiency in managing returns while experiencing challenges in fastened customer services.

Issues with vendor selection oversee. A production that is in-house oriented is quite easy and realist as compared to outsourcing products. On Hunt's Company's case, they add issues with the Chinese who were their new vendor after deciding to outsource. They could not meet the demands of their consumers due to them being delayed with the long lead times. The quick response time changed and reduced, especially with the supply of products to their consumers.

The other issue is the effects of unplanned changing in the business model. The Hunt Company seemed to have no choice but to have a model change. They had been fast responders to the demands of the consumers, such as pens, clips, among others, when they were a manufacturing entity. According to Bracey, the company was reduced to relying on its partners. The company aimed at ceasing from being a manufacturing one to becoming a distribution and supply chain prowess. Hunt implemented new processes of chain supply that were aimed at improving collaboration and communication with suppliers.

The Solutions

A well-run supply chain to ensure that their consumer's demands are met and in good time. Besides, a well-run supply chain should also ensure that the business can afford the cost money for their new manufactures can be able to supply them with products that are of quality and quantity. A good management model also ensures that the company can attain a good inventory even for proper stock-taking. Working efficiently with suppliers to cut down on the increased lead time also another solution. Developing an appropriate chain of supply should ensure that the consumers have products that have a continuous flow to increase their competitive factors with other suppliers. This entails proper communication, collaboration, commitment, and continuum with the suppliers to reduce the extended lead times. The company improved by establishing what Bradley said, "Firm, slushy, and free zones within the forecast." Also, through supply visualization, the lead times can be reduced immensely. Hunt should be in a position to choose a proper vendor partner that can meet their demand in the supply chain and one that will meet its forecasts. Through this, the company can have stocks that meet their consumer's demands.

The Rationale for the Solutions

Demand solution forecast-this process entails making, checking, correcting, and using forecasts by determining the forecast horizon (Chase, 2013). It entails acquiring the proper information so that the whole team, including the suppliers, producers, and manufacturers, can work as a team and effectively together to meet customers' demands. Through this, information is shared, especially the forecasting data and the inventories with the executives to deduce the impact of every sale that has been made. This strikes a balance within the high and low costs incurred during the whole process.

Effective communication among the suppliers, producers, manufacturers, and consumers help in the flow of information, including the benefits and challenges of the product (Yen et al., 2011). Moreover, with the use of a browser-based system that will enable information concerning the company and the products or services provided through the internet web technologies. Information can reach the executives together with the producers and the consumers without impartiality. They can acquire similar information that is communicated through the browser-based system. The company can advertise itself to the public altogether.

Supply chain management is also another rationale that goes hand and with a well-run supply chain. It opines a flow of the goods and services that involves all the processes that alter raw materials to come up with a final product (Blanchard, 2010). It also entails the active streamlining of the activities of the supplying side for the customers to have ultimate value and for the company to increase their competitive advance against another supplier. For Hunt's company, they need to use the supply chain management to meet the demand of their customers.

Steps to Implement New Strategy

Plan- developing is necessary to assess whether the products are satisfactory to the consumers. The plan should be able to yield maximum profits for the designing company. It should develop several metrics for the company. The analysis is made on the strategy. Developing it entails sourcing and building effective relationships with suppliers of the raw material that will be used in manufacturing the end product (Wiley & Sons, 2006).

Make- this involves manufacturing the product to meet the customers' demands. The products are designed, manufactured, tested, branded, packaged, and arranged for delivery (Wiley & Sons, 2006). The companies can weigh the quality and quantity of the products.

Deliver-the products are then delivered to customers by their suppliers at their located destination. Companies are in collaboration to meet the orders of the consumers. A network is also established.

Return- the consumer returns products that are defective or damaged. Queries faced by the customers regarding the goods are addressed in a manner that is responsive and flexible to accept the damaged products.

Conclusion

In summary, Hunt's company is a privately owned company that stopped manufacturing its products and decided to outsource from a chan. This brought numerous problems, including long leading times, unplanned change in the business model, and issues with their supply vendor. Suggested solutions may include proper communication, meeting demands of the client, reduction of lead time, among others. The company has to land on its feet by making more changes that will benefit them, including demand solution forecast, effective communication, and supply chain management.

References

Blanchard, Product. (2010). Supply chain management best practices. John Wiley & Sons.

Bresnahan, J (2005). Supply Chain Operations: Planning

Wiley, J. & Sons (2006). Supply Chain Operations: Sourcing Materials and Making

Yen, Y. X., Wang, E. S. T., & Horng, D. J. (2011). Suppliers' willingness of customization, effective communication, and trust: a study of switching cost antecedents. Journal of Business & Industrial Marketing. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/08858621111126992/full/html