AMayesin Bakes, is a food manufacturing company located in Battle Creek, Michigan. The company was started on May 8, 1993, with the intention of providing fresh baked goods to local businesses and residents at a reasonable price. However, in recent months the company has experienced an increase in the amount they spend on raw ingredients, which in turn caused the company to raise the price of their finished goods in order to remain competitive in the food industry.
Company officials were concerned by the price increase and therefore instructed the Supplier Management team to investigate and determine which raw ingredient increased in price. Upon investigation the company officials learned that there was not an increase in the price of raw ingredients, rather there was an issue with the supply of flour coming in to the plant. The amount of flour that shows up on company records is less than the amount of flour purchased by the company. Research shows a large discrepancy, with over a million pounds of flour being unaccounted for. Unfortunately, there isn’t enough evidence present to make any suggestions as to what could be the cause for this discrepancy. Therefore, AMayesin Bakes will need to hire a third party to help them investigate and hopefully find out where the missing flour could be.
If you have any suggestions as to how we should begin our investigation your comments would be greatly appreciated.
Subscribe to:
Post Comments (Atom)
I've heard in the past that mice love flour... maybe you could start by looking for infestation in the plant or over-weight rodents...
ReplyDeleteHi Katina
ReplyDeleteMy idea for a case study is:
The challanges of communications in acquisitions of privately owned company by a publicy owned company.
Sandra
Hi Katina,
ReplyDeleteMy idea for a case study is as follows:
One issue that many companies find challenging is the communication of policy changes. For this specific case study, the issue at hand will revolve around senior managers that make policy changes and announce them to the entire workforce before identifying what questions and complaints may arise out of the policy change.
Specifically, it has been found that had the senior managers in question communicated the policy changes to their departmental staff prior to making an organizational announcement there could have been a lot of issues resolved prior to the announcement rather than after the fact. By not communicating with the departmental staff these mangers have had to retract and alter policy decisions after the fact at least three times in a row. How can the departmental staff encourage managers to open about the changes that are coming so that all challenges can be identified and addressed prior to the announcement?
Katyna,
ReplyDeleteHave you thought abot the idea of geting the procurement department involved? This would save money by not hiring a consultant. Most procurement departments keep a close eye on ingredient orders.
Katina,
ReplyDeleteI agree with Bonnie, maybe another department should take the lead in overseeing the raw ingredients,before bringing in a third party and adding to the company's expenses.
Hey Katina,
ReplyDeletePerhaps there should be one person incharge of oversee the flour for a while at least until it starts to look better
Katina
ReplyDeleteBeing in the procurement department we do keep track of what comes in and what was on the shipment. Our ingredient department in procurement gets invoices and our inventory control department post against what was shipped in compared to what was purchased. That might be a good route for you.
What a dilema? Buat the overvall goal is to stay competitive with pricing, so it is important to have poolicies to manage these products, but it is better to be proactive rather than reactive. When this happens you get miss communication and policies that may not be the best?
ReplyDelete