However, as it works in foreign production markets like China, Riordan must remain conscious of its strategy capacity for output of its product and for the input of the resources required for this product. Establishing this balance means determining the pace at which the company should import and stock fan motors as these relate to peak and slow sales peariods for the seasonal product line. This is to say that at this juncture, Riordans priorities are in an expansionist strategy whereby it must maintain a substantial stock of the necessary resources in order to attend to a long-term effective capacity. The increased output required for an expansionist strategy means that Riordan is focused today on a design capacity that is based upon the different needs reflected in different market places. In the U.S., the 7% delay on a 93% delivery proficiency means that market demand remains ahead of supply. A new inventory and warehousing emphasis in America could significantly alter this predicament.
Clearly, in operations contexts such as the United States, where Riordan is already entrenched as a reputable source for commercial plastics, its actual output will have achieved a symbiosis with the design capacity such that this output is something in the range of 75% of the anticipated design capacity during peak sales seasons for fans.
In determining a strategic capacity for increased focus on inventory and warehousing, its effective capacity must also account for variables of cost in terms of facilities, labor, environmental regulatory adherence and a projection for the estimated space of time which is used to account for the consumption of certain resources and to mark a point at which it is necessary to replenish these resources.
Dear CEO . . .,
I am pleased to report that Riordan is handling the challenges of the global market admirably and boldly. Indeed, its production operations in Hangzhou, China reflect a positive, ethically responsible and quality-driven global manufacturing strategy. Still, as we move into the next decade of global supply chain management, there are opportunities to significantly refine the opportunities to be had therewith.
This proposal here provides a coordinated plan for the aggregate operations at Riordan, relating its reliance on MRP technology and its relationship to the China operations in a strategy that will drive domestic operations toward a smarter inventory balance. The shift of warehousing and inventory focuses domestically toward imported fan motors as opposed to plastic polymers represents the kind of adjustment that can differentiate the survival from the victim of global economic transitions.
For Riordan, this is truly a great opportunity. The current delay between production and market instigated by shipment delays coming from China actually demonstrates a positive problem. That is, in spite of our success, we are yet to achieve the best of our potential. Filtering the new Design Process strategy through a Total Quality Management philosophy will help to recast Riordans global production and supply chain approach not just as functional but as flourishing.