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Acme Communications

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ACME COMMUNICATIONS EQUIPMENT, INC CASE STUDY Identifying the Problems ACME Communications Equipment, Inc. appears to have a number of issues within their supply chain. ACME has one problem that is described as “considerable annoyance” to customers, their flawed order system. This is a huge issue that needs particular attention as the ordering process correlates directly with other problems ACME is facing. We will address this issue and others and attempt to correct the problems noticed. The order management system represents the principal means by which buyers and sellers communicate information relating to individual orders of product. According to the customer survey cited in the case, it appears the order process is the biggest concern for ACME. There are frequent errors in recording/filling orders, and there is no confirmation when the order is received. Reducing error in this order process can improve the company’s ability to reserve inventory and determine delivery date/time. The flawed order process ultimately affects ACME’s inventory reliability. Errors in recording orders can lead to promising customers inventory that is actually not available. ACME’s inventory reliability performance is comparable to major competitors. ACME fulfills roughly 80% of item demands from stock on hand. However, when orders are picked, there are occasional errors, which results in items having to be returned. This causes significant confusion on ACME’s part. ACME’s lack of understanding closed-loop supply chain prohibits them from capturing additional value from the returns process.
Another issue expressed by customers deals with delivery time. Although ACME’s average delivery times are considered to be acceptable, their performance has slipped in terms of reliability. Customers can’t be sure when their orders will arrive. On a local basis, this is caused by ACME’s

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