Typical Problems



1. A customer calls the sales team to buy a particular product (URGENT Basis)

2. The sales team has no REAL Time Inventory Information

3. So they check the inventory department to check the availability of the product.This process takes time and the customer chooses another vendor.

This leads to loss of revenue and customer dissatisfaction.

4. Lets say the product is out of stock and the sales team approaches the production planning team to manufacture the product for future use.

5. The production planning team checks the availability of the raw materials required. Raw material information is separately stored by production planning as well as the inventory department. Thus, data maintenance cost goes up.

7. The particular raw material required to manufacture the product is available in the inventory but according to the database of the production planning team the raw material is out of stock.

8. So they go ahead and buy the raw material. Thus, material and inventory costs go up.

9. Once the raw material is available, the shop floor department suddenly realizes they are short of workers. (No capacity Planning)

10. The approach the HR who temporarily hire employees. Higher than market rates. Thus labor costs increases.

11. The production-planning department fails to update the finance department on the materials they have purchased.

12. The finance department defaults the deadline set by the vendor causing a loss of reputation or even a legal action.