The Case Study 3.1 On Emerging Market
3 THE CASE STUDY
3.1 About Emerging Market
3.2 About ABC
ABC is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. ABC has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its approximately 17,000 employees generated annual sales of CHF 5.6 billion in 2014. ( ABC web page )
3.3 About XYZ
Founded in 1973, XYZ Logistics was restructured as an integrated logistics service provider in 2000. XYZ Logistics specializes in four strategic business units: Turkey Domestic Logistics Services, Port Services, International Transportation Services …show more content…
The total inventory (including raw materials, semi-finished materials and finished materials) value against to all sales was 9 %.
3.6 The Reason of Change
The main reasons that force the change are as follows:
1) The COO is the second responsible officer after CEO. COO is responsible from Supply Chain Management (including Logistics, Purchasing and Planning), production, maintenance, quality and investments. COO has also a title in regional and it has been expected CEO in the future. The CEO has a sales back ground. The CEO was afraid of losing his position against COO and CEO decided to change the organizational structure of the company. A new COO was promoted for the company and ex-COO became Plant Manager ad he was only responsible for production and maintenance.
2) The conflict between ABC and XYZ about overtime invoicing.
3.7 Change Process
The new COO began to do business as the instructions of CEO. He decided to manage the organization with less budgeted as buying less material and making no transportation after day shift. He tried to lower the operational costs. This type of making business was very different for the personnel and they showed …show more content…
The purchasing department could not manage to buy the necessary materials when they were needed.
The planning department could not make the master planning in Axapta according to the forecast of sales department. In the lack of raw materials the production could not be done.
The sales department started to accuse operation department as not sending the needed products to the customers.
He increased the budget. He decided to make transportation all day paying overtime. He started purchasing. The inventory also increased. The operational costs increased. According to the Axapta, the system did not let invoice the products less than 20 % contribution margin. The sales department could not manage to sell the products with new high prices. The company lost customers to its competitors.
CEO was behind his decision and he was supporting COO. In quarter based controls, the KPIs were terrible. Because of this reason the department and the personnel of the department could not achieve the targets. The bonuses were not given to the
3.1 About Emerging Market
3.2 About ABC
ABC is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. ABC has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its approximately 17,000 employees generated annual sales of CHF 5.6 billion in 2014. ( ABC web page )
3.3 About XYZ
Founded in 1973, XYZ Logistics was restructured as an integrated logistics service provider in 2000. XYZ Logistics specializes in four strategic business units: Turkey Domestic Logistics Services, Port Services, International Transportation Services …show more content…
The total inventory (including raw materials, semi-finished materials and finished materials) value against to all sales was 9 %.
3.6 The Reason of Change
The main reasons that force the change are as follows:
1) The COO is the second responsible officer after CEO. COO is responsible from Supply Chain Management (including Logistics, Purchasing and Planning), production, maintenance, quality and investments. COO has also a title in regional and it has been expected CEO in the future. The CEO has a sales back ground. The CEO was afraid of losing his position against COO and CEO decided to change the organizational structure of the company. A new COO was promoted for the company and ex-COO became Plant Manager ad he was only responsible for production and maintenance.
2) The conflict between ABC and XYZ about overtime invoicing.
3.7 Change Process
The new COO began to do business as the instructions of CEO. He decided to manage the organization with less budgeted as buying less material and making no transportation after day shift. He tried to lower the operational costs. This type of making business was very different for the personnel and they showed …show more content…
The purchasing department could not manage to buy the necessary materials when they were needed.
The planning department could not make the master planning in Axapta according to the forecast of sales department. In the lack of raw materials the production could not be done.
The sales department started to accuse operation department as not sending the needed products to the customers.
He increased the budget. He decided to make transportation all day paying overtime. He started purchasing. The inventory also increased. The operational costs increased. According to the Axapta, the system did not let invoice the products less than 20 % contribution margin. The sales department could not manage to sell the products with new high prices. The company lost customers to its competitors.
CEO was behind his decision and he was supporting COO. In quarter based controls, the KPIs were terrible. Because of this reason the department and the personnel of the department could not achieve the targets. The bonuses were not given to the