1 Hershey’s poor supply chain management system and operations resulted in undercut of business in 1999
Situation: Hershey, the candy giant decided to bring radical changes in its IT business processes like introducing new order and customer management system and overhauling its supply chain. It started it in real time simultaneously in its peak season of sale before Halloween festival in US.
The result was that product was on the dock but was not visible to its order assignment and processing team. Despite having good numbers of orders it failed to arrange its pick and transport to retail destinations. It suffered from gigantic business losses.
In September, 1999 it lost in stocks due to its statements given on conference call to Wall Street analysts that it has issues in its new IT operations.
Proposed strategy to “fix” this situation: Company executives’ should talk to analysts at Wall Street to improve its image and tell them all issues are resolved. The company should devise unified communication systems where various applications can talk to each for coordination.
2 Boeing 787 delay due to sluggish operations and issues in supply chain management system resulted in undercut of business
Situation: In 2000, Boeing created lot of excitement in transport industry by announcing the launch of Boeing 787 Dreamliner commercial airplane. But it was not able to complete the product within time that was May 2008. It took more 3 years for it to render service.
The company took much on its platter and following a aggressive approach to bring transformation without calculating the risk moved ahead to do all of above by altering its assembly line and supply chain system in one go.
Proposed strategy to “fix” this situation: Boeing needs to focus on constant improvisation of its assembly so to get back in line with its production systems.
It should resolve all technical problems to get certification from US authorities to get orders.