After reading Chapter 11 Supply Partnerships and and Supply Chain Power and discuss the Case #7, Butler System and how it relates to the chapter. 500 words.
The case being referred to includes Butler Systems Company, which is in a coupling contract with SDX Company. Butler Systems has some expertise in the production of energy molding gear and also natural control systems and depends on battery supplies from SDX. Butler Systems utilizes HD-5 battery as the principal part of crisis supply framework. SDX is in a five-year contract with Butler Systems for the supply of batteries.
This will include legal advisors and the batteries supply contract between Butler System, and SDX would be looked into. This is because neglecting to watch and regard legally binding assertions adds up to a rupture of the agreement. SDX has broken the agreement on two events. Initially by neglecting to watch the typical 90-day battery supply assertion and furthermore, is when SDX changed battery costs without telling Butler System sixty days before doing as such as the agreement plainly states. This rupture of agreement has left Butler Systems unfit to serve its client base proficiently.
When the five-year contract of the organization expired then the contract will be removed for a year. In this case, if any of the organization does not notify the intention of other than this contract will be renewed in next sixty days. The contract will be renewed before the expiration declared by the opponent organization. Therefore, I think the assess to the quality and improvement for the services provided by the organization. The SDX delivers the services that are provided by the Butler organization. The delivery of the SDX is used to decide that whether the contract renewal is valid according to the contract condition and the expiry date of the contract.
According to the expiry date of the contract, if the services of the contract should not be improved, then it will stop the contract. According to me, in this case, the butler system organization will have to go to the new supplier after this. To buy the new supplier, the buying organization that has to be used to identify the expectation of the supplier. The identification between the supplier and buyer is beneficial in taking appropriate decisions that result in the appropriate decision that will be most suitable for the organization and other associated employee.
The other major problem that is faced by the butler system organization is related to the shortage of the battery system. Due to the shortage of batteries, the other problem that arises in the organization is related to the on-time delivery of the product. The time of delivery of the product impacts on the production and sales of the organization. This will impact on the whole manufacturing organization. The delay in the delivery of the product will also impact on the profit level of the organization. The chances of gaining the competitive advantage at the local and global level will also be affected with this. Therefore, the delivery of the batteries and the increment in period is the best solution to the problem that is faced by the organization.