Inventory Requirements for Riordan Manufacturing
On September 10, 2003, Hugh McCauley, Chief Operations Officer of Riordan manufacturing sent out two memos with regards their China relocation and the IT Special Project. The persons contacted were Charles Williamson, VP of International Operations; Dale Edgel, Chief Financial Officer; Lowell Bradford, Chief Legal Counsel; Clyde Cousins, VP of Transportation; Maria Trinh, Chief Information Officer; Robert Lord, Director of Plant Operations who lives in China; and the company’s namesake, President, and CEO Michael Riordan. Persons in all levels of the organization have been made aware of needed changes that have taken place and problems that must be solved in order to maintain growth and continue with satisfactory customer service.
Riordan Manufacturing has enjoyed measurable success due to good customer service and satisfaction by delivering a quality product. With growth changes are inevitable and new problems arise. Even though problems exist at all levels of the organization Learning Team D has chosen to resolve issues directly involving the inventory department.
Currently inventory and control is a paper based inventory management system that has become outdated and obsolete. The system is a seven step process that includes a separate document for each step. These steps or processes are expensive and time consuming, and hinder future growth toward expanding into a global organization. The seven steps are; 1) Receiving documentation; 2) Scheduled orders documentation; 3) Orders received documentation; 4) Raw materials/sub-assemblies documentation; 5) Sub-assembly/final product documentation; 6) Sales order form documentation; 7) Shipping documentation. Along with each of these steps an inventory technician is responsible for putting the information into a computer, which could conceivably be seen as 14 separate steps.
Riordan’s paper based inventory management system has to be updated to accommodate not only the inventory of its plants and
Riordan Manufacturing has enjoyed measurable success due to good customer service and satisfaction by delivering a quality product. With growth changes are inevitable and new problems arise. Even though problems exist at all levels of the organization Learning Team D has chosen to resolve issues directly involving the inventory department.
Currently inventory and control is a paper based inventory management system that has become outdated and obsolete. The system is a seven step process that includes a separate document for each step. These steps or processes are expensive and time consuming, and hinder future growth toward expanding into a global organization. The seven steps are; 1) Receiving documentation; 2) Scheduled orders documentation; 3) Orders received documentation; 4) Raw materials/sub-assemblies documentation; 5) Sub-assembly/final product documentation; 6) Sales order form documentation; 7) Shipping documentation. Along with each of these steps an inventory technician is responsible for putting the information into a computer, which could conceivably be seen as 14 separate steps.
Riordan’s paper based inventory management system has to be updated to accommodate not only the inventory of its plants and
References: Reynolds. G., Stair, R. (2006) Fundamentals of Information Systems, Retrieved October 2, 2008, from University of Phoenix, rEsource, CIS 319 Web site http://www.taltech.com/TALtech_web/resources/intro_to_bc/bcpwork.htm http://bar-code reader.khs.co.uk/2008). Retrieved October 10, 2008.