Operations and Logistics

Introduction

Operations and logistics are intergral parts of a company's core planning process. According to "Southern Fulfillment Services" (2010), "Logistics is generally defined as the management of the dissemination of goods, services or information between two parties, the producer and the consumer" (The Importance of Logistics to the Average ransport Company). Logistics is the process used to store a company's raw materials, services and inventory. It is curcial that Riordan has a very effective and efficient logistics department in order to stay competitive with other companies in the business. Riordan like other companies have to make sure that they deliver goods to customers in an expedited fashion. Customer relation is key in any business and that should be the focus of the company. No company can be successful without an operations department. Operations oversees the whole planning process of a company and influences a company's decsion-making.

It is apparent from looking at the different manufacturing sites in Riordan that they are in need of a supply tracking and accounting system. They also need to be able to analyze the market. Riordan is estimating their production from past years marketing data to forecast future supplies and production. Should their suddenly be an upswing on their product consumption, this could leave them in dire straits for supplying the demand. By instituting a common cloud based computer program HQ could monitor inventory, supplies and personnel at each location providing accurate resources at each site in real time. Following is a breakdown by location of strengths and weaknesses at each facility:

Supply Chain

R&D - Minimal use of resources develops heart valves, medical stents and complimentary medical devices. Does not have the supply problem related to the other locations due to prototype development only.

Albany Georgia Facility - Standard and customer unique bottles made on a yearly quantity contract basis. Riordan keeps a safety stock and supplies available to ship to customers. Limited space for storage of raw materials makes this a virtual trouble spot should product request increase. .

Pontiac Michigan - Custom Plastic fabrication, parts, design and color. This site maintains sufficient stock on hand to quickly respond to custom plastic parts fabrication.

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