Essay: Meditech Company Business Drawbacks
The problem pertaining to the poor service level of the company was also investigated upon and the research provided that the poor service level of the company was directly due to the stock outs being faced by the company for new products the dealers and the affiliates of the company tended to panic order the new products striving to stock up on the new products to protect themselves against any increase of demand for the products in the market.
This caused the stock outs at Meditech, creating a doubt in the capacity planning and production level of the company. This also affected the service level of the company in an adverse manner, as the company was unable to fulfill the contracts in time, creating a reputation and image problem for the company in the market. The dealers had their own systems for managing demand and supply and placing orders while the Meditech Company had a separate system for its supply side of business which forecasted for demand of product in the market based on past trends. The decentralization in the market as a result caused a rift in the systems of the dealers and affiliates as well as that of Meditech, resulting in discrepancies in demand and supply schedules. This directly caused, reputation and brand based problems for the company through reflection of poor service level, delivery time and standards of operation of the supply function.