Meditech Case Study

1. What are Meditech’s problems in introducing new products? In manufacturing ALL products?
Meditech was the leading company in endoscopic surgical instruments. New products were critical to its growth. However, Meditech was unable to keep up with demand, customers lead times was over six weeks for delivery, since they consistently have shortages with each introduction they received a poor reputation. Forecasting and Inventory controls are key to the issues surrounding the introduction of new products and for all Meditech’s manufactured products.
2. What is driving these problems, both systemically and organizationally?
One focus in Supply Chain Management is to look at an entire system within an organization, from transportation, distribution, inventory, work in process, finished good, warehousing, etc. From a systemic standpoint, Meditech problems arise from using a poor document system, a decentralized purchasing function, no procedures, “panic ordering” from dealers, poor forecasting and inventory controls. Organizationally, inventory control and forecasting create major issues for the company. Also, the fact that there is no data gathering system for the company.

3. Why is the customer service manager the first person to recognize the major issues?
Dan Franklin, manager of Customer Service and Distribution was able to realize customers’ frustrations through meetings with hospital material managers. Franklin also has a staff member to collect data and investigate the introduction problem for new product and inventory/service level paradox. He had data on patterns of demand, production, and in forecasting.
4. How would you fix these problems?
In order to fix the issues in Supply Chain within Meditech, I would suggest that the company use an ERP system for the entire organization, so that information is in a central