Reference no: EM132994592

What are the issues at this organization? What can you do in your business plan that will focus on turning around the overall performance of this organization?

A business organization desires its business strategy to be more responsive to individual customers in its market. The organization wants to establish its competitive advantage by being more efficient than the competition. The organization currently is carrying an abundance of inventory. Inventory turns are only at 2.1. The suppliers' delivery performances are excellent, in that they exceed the customer request date by 96 per cent and there are no quality issues with the materials received. The standard lead time from the vast majority of suppliers is three to four weeks. The organization insists on having receipts from suppliers delivered as early as possible, as it wants to ensure no downturn on the production floor. The cycle time to the work-in-process ranges anywhere from 14 to 16 weeks. The organization's delivery performance to their customers is 68 per cent. The sales backlog represents four and a half months of capacity operation's requirements. The organization never turns down a customer order, for fear the customer may go elsewhere and this could potentially lead to future loss of sales. Payments to suppliers are constantly delayed, and the finance team juggles to schedule these payments on a daily basis. Suppliers are demanding Net 30 days payment terms while customer's payment terms are anywhere from Net 45 to Net 60 days. Payments to suppliers are being processed anywhere from 50 to 75 days. The organization is currently not using the software program's ERP planning system. Customers are upset, staff is frustrated and the finance team is feeling the stress to keep up with payments.