1.0 Time contextThe realization of the inability of ABC GmbH Company to supply the required contents by Success Inc was highlighted at personal level by concerned dedicated employees. One of them is Jill Turner a business analyst o suppliers. The next person is Jack Smith from sourcing section. The concern was explicitly analyzed by the two during their 7 P. M phone chat. In this event, Jack Smith noted that ABC GmbH Company could do the investment on its own to supply the required contents as stipulated in the agreement.
This is as result of ABC Company being involved in a management buyout without any venture capitalists. Hence, meaning that financing has to be very tight. Thus, this meant that Success Inc entrusted a Small Supplier with big volume of work. 2.0 Viewpoint The supply chain relation between Success Inc. and ABC GmbH Company is not in the line with the theoretical and practical expectations of integration and cooperation. In one instance, ABC GmbH Company is not able to meet its contractual obligation and thus, operations of Success Inc. are nearly grinding to halt.
However, this was as a result of Success Inc procurement department not being able to see the financial abyss that the contracted company was. Moreover, even from the outlook and present ability of the ABC GmbH Company employees and premises, it showed a total failure. In addition, the same company was small in capacity yet it was entrenched with the duty of supplying voluminous contents. From the above instance, it seems most of the managers at Success Inc. pegged their decision based on the old approach of unilateral domination and completion in supply chain.
To curb this, there is an agent need for Success Inc. to shift their focus into another supply with higher capacity and ability to finance the process. Moreover the company should try and invest in a mutual relationship with its suppliers since they are integral part of their lifeline, success and market leadership. Supply chain management philosophy is pegged on the system view approach rather than a set of fragmented parts. This translates to the fact that supply chain management extends the concept of partnership into a multiform effort to manage the total flow of goods from the supplier to the ultimate customer.
Thus, each firm in the supply chain directly and indirectly affects the performance of all other supply chain members, as well as ultimate, overall channel performance (Mentzer, 2001, p. 9). Hence a firm should not keep any supplier that is not functioning as agreed. In relation to the current situation between Success Inc. as the contracting firm and ABC GmbH Company as the contracted company, there has been the lack of fulfillment of contractual obligation.
Due to this kind of scenario, Success Inc operations are nearly grinding to halt as result of lack of raw materials. There has been some let down since the contracted company has not been able to fulfill its obligation as result of the Company being involved in a management buyout without any venture capitalists. Hence, meaning that financing has to be very tight. Thus, this meant that Success Inc entrusted a Small Supplier with big volume of work. But for future survival and with the situation on the ground, to avoid further losses Success Inc.
should discard this inefficient supplier.