Domestic and International Supply Chain Changes
Seth Dummer, Sara French, Ricky Hinson, Tammie Solomon, Mike Yanke, Karen Walker
ISCOM/476
December 20th, 2011
Adrian Crystal Martin

Domestic and International Supply Changes As Riordan Manufacturing proceeds with their new line of perfume bottles, they realize that their production facility in Albany, Georgia, is at capacity. With a new line of plastic bottles to manufacture, Riordan has purchased a plastic molding facility in Hermosillo, Mexico. In addition, Riordan has learned that customers want them to ship perfume bottles to Howard Beach, New York as well as Vancouver, Canada. These changes will force Riordan to make changes to their supply chain to ensure they can continue to service their customer at a high level.
Solution(s) to the changes and/or problems
The new plastic molding plant in Hermosillo, Mexico will present Riordan Manufacturing with a new set of problems and changes to contend with. A new manufacturing facility in Mexico and an additional delivery point in New York will force Riordan to expand their supply chain operations to include the two new locations. Challenges Riordan may face include increased lead times to get raw materials to the new manufacturing plant in Mexico, and increased lead time to get the perfume bottles to the Vancouver and New York locations. Riordan may also experience increases in freight costs for customers, and the potential for quality issues with the new manufacturing plant.
To combat these potential issues, Riordan Manufacturing must research and implement solutions. One solution to consider is researching how the plastic manufacturing plant in Mexico is accustomed to doing business. The plant, under previous ownership may have excellent relationships with local material suppliers, which would eliminate the need to ship in raw materials from Riordan’s