OPS FPX 5620 Assessment 3 Implementing Global Operations and Supply Chain Infrastructure Changes OPS-FPX5620 Supply Chain Foundations and Management

 

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Optimizing Operations at Mainland Tools: Effective Infrastructure and Supply Chain Enhancements

Implementing strategic recommendations can drive significant improvements in operational efficiency. At Mainland Tools, a well-planned approach focusing on “easy wins” can ensure quick, measurable benefits. This article outlines the priority steps to enhance the company’s global operations and supply chain infrastructure.

Step 1: Redefining Department Layout for Efficiency

The first recommendation involves reorganizing the physical layout of key departments. By positioning the shipping and receiving department next to the warehousing area, the flow of materials can be drastically improved. Currently, these two departments are located on opposite ends of the building, which leads to inefficiencies and increased downtime as warehouse staff must walk back and forth frequently.

Relocating warehouse equipment such as forklifts, shelving units, and office furniture will require some time but no major capital investment, making this step both cost-effective and impactful. Once completed, the shorter distance between departments will reduce delays, ensuring faster processing of shipments. The expected implementation time ranges from 3 to 5 days, depending on the amount of inventory on hand. By allowing staff to work overtime over weekends, this timeline can be shortened to 2-3 days, yielding immediate improvements.

Step 2: Introducing ERP for Streamlined Communication

The next major step is adopting an ERP (Enterprise Resource Planning) system to enhance intradepartmental communication. Currently, paper documentation is often used to process orders and track shipments, which leads to delays and potential errors. Implementing an ERP system would digitize the majority of these processes, making order information accessible in real time across all departments.

With this system in place, employees involved in the supply chain can easily access and update the data they need, significantly improving on-time delivery rates. Although some paper documentation, such as pick lists and packing slips, will still be used, most communication will shift online. This will streamline workflows, reduce the risk of miscommunication, and foster a more efficient operational structure.

If feasible, the existing ERP system used by Thompson Tools in the U.S. should be expanded to Mainland Tools in China. This would not only reduce costs but also ensure compatibility across both locations. The cost of an ERP system varies, with prices ranging from $50 to $150 per user for small businesses, plus additional setup, training, and customization costs that could total between $75,000 and $750,000. Despite this significant investment, the ROI is expected within a few months as the system increases operational efficiency.

Step 3: Expanding ERP to Sales, Marketing, and Planning

The final recommendation is to fully integrate the ERP system across all departments, including sales, marketing, and material planning. While this step will take longer to implement, it will have a profound impact on how the company operates. Comprehensive training will be necessary to ensure employees are comfortable using the new system.

This full-scale adoption of ERP will provide a single source of truth for the entire organization, covering areas like finance, inventory management, and customer service. Managers must lead the way by actively using the system and demonstrating its benefits to staff. Although this step could take up to a year to fully realize its benefits, the long-term impact will position Mainland Tools ahead of its competitors by optimizing internal processes and customer service.

Enhancing Global Supply Chain Infrastructure

A successful global operation relies on a well-aligned supply chain infrastructure. For Mainland Tools, improving the coordination between physical and informational assets is essential for achieving efficiency. By viewing the organization as a connected ecosystem, where each department functions as a vital component, the company can ensure that all processes work seamlessly together.

Aligning the warehouse and shipping departments, as suggested in Step 1, will significantly reduce the internal movement of materials, boosting productivity. Furthermore, integrating the ERP system as detailed in Step 2 and 3 will ensure that all data is accessible in real time, allowing employees to respond to customer needs more effectively.

Investing in both physical and digital infrastructure is crucial for the company’s growth. As observed, companies that lack a holistic approach to infrastructure often face operational setbacks due to fragmented systems. For Mainland Tools, the key to success is adopting a unified stra