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Upgrading the Supply Chain Management Strategy at Sichuan Telecom
Xu Chen ; Zhang Du ; Li Zheng ; Ding Yichao ; Liu Ying
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Reference: IVEY-9B12D013-E
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Year: 2007
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Number of pages: 7
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Geographic Setting: China
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Publication Date: Aug 21, 2012
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Fecha de edición: Aug 20, 2012
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Source: Ivey Business School (Canada)
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Type of Document: Case
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Industry Setting: Information, Media & Telecommunications;
Description
In the process of business development, many enterprises have to deal with issues from all dimensions of operations management including inventory management, distribution management, and network design. Sichuan Telecom, a branch of China Telecom Co. Ltd, which was a Fortune Global 500 company, had achieved its highest market share in its broadband business and maintained strong growth momentum in this segment. However, there was a serious inventory management problem concerning ADSL modems, a component that most broadband users required. The problem was that Sichuan Telecom's ADSL modem inventory was either too high or insufficient. To reduce inventory costs and improve the service level, the procurement manager conducted a comprehensive analysis of the company's sales and demand forecasting, procurement and suppliers, distribution management, warehouse management, and inventory management. This case follows the procurement manager in analyzing the company's existing operational management system for ADSL modems in order to discover the cause of the inventory problem and develop an effective plan to improve operations management.
Learning Objective
·Explore operations management issues such as demand forecasting, inventory management and planning, distribution planning, and network design. ·Learn how to use operations management theories and methods in actual business practice.