Essay: Operations of Meditech Company
As a result the company typically launches about a dozen new products every year. However the company has also been facing massive problems pertaining to new product introduction to the market.
The products are well received in the market by the customers but the introduction problems which are faced by the company are mostly to do with the supply management on the distribution side of the business. Each of the products introduced by the company in the market faced high demand which resulted in shortages of the product at the supply end of the company, creating a need in the market which was not being filled. This was incremental to the bad reputation of the company in the hospital and health care based industry where technological products are required frequently and often in emergencies.
The main reasons that were there behind the problems of product introduction being faced by the Meditech Company included the incorrect and insufficient forecasting of demand of the products from the supply management function through the systems being used. This created a gap where the unsatisfied level of demand exists causing shortages of the product at the end of Meditech when supplying as per the orders of the warehousing businesses, wholesalers and retailers.