Case Study: Just in Time for the Holidays
Problems in North Pole Workshop
North Pole Workshop (NPW) is a kind of agency in which the children place their letters to make a wish to Santa Clause and Santa will fulfill their wish by giving them toys on Christmas. Due to the changes in the technology as well the demands of the children, North Pole Workshop is facing many problems. One of the biggest problems faced by North Pole Workshop is the manufacturing problem. Manufacturing problems means, problem in the design of toys that are not preferred by the children.
According to the given case study, the children are not getting the toys as per their expectations. Due to the lack ...view middle of the document...
They are not very innovative as per the changes of the internal and external environment (Pierce & Robinson, 2005). This creates a problem for the workshop management to fulfill the demands of all the children. Another concern issue for the North Pole Workshop is global warming (Stern, 2009). All the problems are aroused because of shifts in demands of the children, thus, it is necessary for the workshop management to resolve these problems and improve their IS system as well as supply chain management system.
Gaps in NPW’S Supply Chain Technologies
North Pole Workshop works according to the just in time approach. This just in time approach of the workshop is related to the one market, the children all over the world, and one deliverable: right toys to right kids. Even the workshop has only one date to deliver their products to the target market, 25th December. So according to them just in time approach means delivery of the goods on the right time to the right person within the definite timeline (McNulty, 2005).
In this concern, it is essential for the workshop that their supply chain system should be effective and innovative. Just in time approach allows the workshop to produce only what is required by the next procedure in an uninterrupted flow (Lewis & Slack, 2002). Although this is a good approach for the management to control the wastage material because after 25th December, the workshop can’t move for extra merchandise but lack of enough knowledge about the Just in time approach and new innovative technologies creates gaps supply chain process of North Pole Workshop (McNulty, 2005).
One of the biggest gaps in the supply chain process of NPW is the lack of retail outlets and stores to sell the toys directly to the children. Thus, the distribution channel of the workshop is very weak, which increase the set up cost and needs high time for the improvement and distributes the toys to the children. Another gap in the supply chain management process is the technological gap. Eastern Europe and China are much powerful in the technological penetration in comparison to North Pole, which restricted the workshop to deliver the services all over the world children (McNulty, 2005). In order to distribute toys in United State America and Canada the distribution technology used by the workshop management is ‘teen scene circulation’, whereas the firm has also decided to open some new units in Africa because of cell phone penetration (Lewis & Slack, 2002). Uses of different SCM channel and technology develop a complicated system for the workshop for the distribution of toys on time (Gattorna, 2003).
The ERP system of the company was not well established because the link between the letters received from children and the manufacturing and procurement system of the workshop. These gaps in the supply chain management create a difficult situation for the workshop for the uninterrupted flow of the goods. The employees cannot focus on their...