UdrysThirdSemesterRe Examination

8/18/2019 UdrysThirdSemesterRe Examination

1/23

lillebaelt academy of higher professional education

APRIL 2016

Word count 6!"#


2/23

Table of Contents

$ontents

Introduction%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 2

&alue $hain Analysis%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%'

(upport acti)ities%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% '

Primary acti)ities%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%6

Logistics e*ciency%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 10

Porter+s ,)e forces%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%12

(%W%-%.%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 1/

.ransport la%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 16

Problems of edico lectronics%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1!(olutions%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1#

$onclusion%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 1#

3ibliography%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1#

References%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%20


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Introduction

Medico Electronics A/S is a company stated in Denmark, which specializes in developin and

prod!cin a variety of e"!ipment for medical p!rposes# The medical e"!ipment that Medico

Electronics prod!ce incl!de a sort of stim!lation devices, which are !sed to e$amine a patient for

brain disorders s!ch as depression or m!scle diseases, to add they also prod!ce medical systems

for skin treatment and dianose of !rinary tract disorders# The company Medico Electronics was

fo!nded back in the year of %&&% in a '(m) former reen rocery store in the Copenhaen district

of *rederiksber# The fo!nder of ME, +enrik Carlsen, who is c!rrently the esearch -

Development manaer of the company says, that despite the fact that his newly.fo!nd company

had only '(m) of space to spare, there was plenty of room for creativity# The first prod!ct that

had entered the market was a manetic sim!lator, which appeared in %&&), a year later after the

company had been fo!nded# As the companys rowth was inevitable, in %&&0 the company

Medical Electronics had moved to *ar!m, which is stated north of Copenhaen, and their '(m)

reen rocers store was chaned to premises which were coverin '(( m)# 1ow that the

companys ro!nds have increased by a tenfold, there was eno!h room for contin!ed rowth,

which is what the company was foc!sin on and doin from the start# 2n %&&3, the company was

2S4 &((.% certified, which indicates that Medical Electronics had implemented 5!ality

Manaement System re"!irements for all areas of the b!siness, incl!din facilities, people,

training, services and equipment# Today Medico Electronics has an E1 %6037 certificate and is

entitled to CE.mark its prod!cts and to add they also have 89 certification# As Medico

Electronics is constantly e$pandin and improvin, the space that they need for their activities

rad!ally increases, so ' years later, in )(((, the company had moved aain, choosin to stay in

the same city of *ar!m, b!t seekin o!t larer premises# Since movin in into the new ro!nds,

Medico Electronics rad!ally took over the whole b!ildin, and the c!rrent space they have to

spare increased yet aain, from '((m)

to %3'(m)

, a little bit over threefold# Thro!ho!t the

years, Medico Electronics made m!ch of the fact that bein able to control all relevant processes

of the company is hihly so!ht after, which is why prod!ct development, prod!ction,

distrib!tion and p!rchasin are manaed in.ho!se# Altho!h the idea was to manae these thins

in.ho!se, a variety of parts of prod!ction have been o!tso!rced to :oland, i#e# the man!fact!re of

cables, circ!it boards and mechanical parts, which are s!pplied as semi.man!fact!red oods#


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&alue $hain Analysis

(upport acti)ities

Firm infrastructure

Vision ;


5/23

"uman #esource $anagement

%losed & Open organization – Seein as Medico Electronics avoid !sin any sorts of

advertisements for their prod!ction and the information abo!t the companys feat!re is held

inside the company provides !s an imae that it is a possibly closed oranization#

$otivation – There are no apparent ar!ments between the workers inside the company, aside

the disareement of some ideas, which allows !s to believe that the workers are motivated#

'mployees( qualification – Altho!h there was zero to none information provided abo!t the

"!alifications of employees, this is a company that prod!ces hihly comple$ devices for medical

p!rposes, which provides is with an answer that they are hihly "!alified# Altho!h, hih"!alifications are not needed for wareho!se employees#

#eward system and processes – 2n the medical field, people always need to proress with their

work towards a better f!t!re, there is no apparent reward system c!rrently in the company, b!t

rewardin people for their contrib!tion wo!ld prove to be reat, reward systems also boost

motivation#

$anaging of education – There was no s!ch information provided in the case abo!t Medico

Electronics, b!t we can safely ass!me that there m!st be some kind of ed!cation, as in the

medical field, employees need to be constantly trained how to properly act with the e"!ipment to

both safely and effectively reach so!ht o!t res!lts, as the medical field is constantly improvin#

$anagement style – 2n this company it is apparent that the manaement style is Democratic,

since when it comes down to decision makin, everyone can pitch in their opinion and options

for the company are considered as a whole, the decision is not made by only one person#

)echnology development

'#P *enterprise resource planning+ – There is no real E: system as s!ch in Medical

Electronics, they are !sin a rather old version of 1avision# The system had been ad@!sted a few

times to match the re"!irements of the company, b!t the system is diffic!lt to maintain or convert


6/23

to a new version of, for e$ample, Microsoft Dynamics# As a res!lt, the company is still st!ck

with many paper.based systems which are developed thro!h E$cel by individ!al employees#

%#$ *customer relationship management+ – All sales are manaed by a s!bsidiary, in which

the staff either visit their c!stomers directly and make certain areements with them, or workthro!h partnerships with wholesalers which are within the medical sector#

Production control – The prod!ction process is man!al, most often characterized as the

assembly of parts# 4ther processes, s!ch as material processin and finishin are restricted to

semi.man!fact!red# D!e to this, the oods are carried o!t by the companys s!b.s!ppliers# hen

prod!cin individ!al devices, it is done by one specific employee, who from here on o!t is

responsible for the entire device# :rod!ction is based on paper which has a drawin of the device

on it, which has been drawn !p and approved by the esearch and Development and 5!alityControl departments#

,-,&,-% )echnology – Medical Electronics is !sin b!siness to c!stomer technoloy#

Procurement

Supplier search – :o!l 45ller had been recently contacted by se)eral cables and

printed circuit boards suppliers from $hina%

Supplier selection – There are 6 thins that have an impact on s!pplier selection for Medical

Electronics, which are price, "!ality and delivery time# There had been a b!siness proposal by a

Chinese s!pplier, as they were offerin competitive prices for several prod!cts, b!t havin

s!ppliers in China wo!ld mean an even loner delivery time, which is a c!rrent problem for ME,

also the "!ality of said prod!cts from China are hihly "!estionable and too risky#

Purchase contracts – :ia 4lsen, who is the p!rchasin assistant of Medico Electronics, is

responsible for p!rchasin standard oods, both direct and indirect ones# Typically, d!rin her

work day, she prints o!t demand lists from their 2T system 1avision, after which :# 4lsen beins

orderin oods from Medico Electronics !s!al s!ppliers# 8s!ally :# 4lsen sends off an order to

the s!pplier she believes offers the lowest price#

Supplier evaluation – S!pplier eval!ation is based on 6 main components, which are %# Time of

delivery# )# :rice# 6# 5!ality


7/23

Purchase prognosis – e can ass!me that Medico Electronics p!rchases are made based on

their previo!s years# To add, as seein that two of their main prod!cts had been *DA approved,

they made a statement that their sales co!ld do!ble#

Primary acti)ities

.n/ound logistics

Optimum purchase size – Altho!h there is not m!ch provided abo!t the p!rchase "!antity of

oods for this company, we can safely ass!me that it m!st be rather bi# 2n attachment 0, it is

shown how many components are needed for @!st one prod!ct, a brain scanner, and how many

parts for each component are needed ann!ally# *or these prod!cts both raw materials and semi.man!fact!red oods are needed#

.n/ound transport – 2n the case provided, appro$imately B7> of all p!rchases are mainly made

in Eastern E!rope, primarily in :oland, and these orders are bro!ht to *ar!m, Denmark by the

s!ppliers# :o!l ?@ller believes, that the transport of oods sho!ld be made by Medico

Electronics itself, rather than the s!ppliers, thro!h the !se of E$ orks incoterm, as they wo!ld

be in chare of the transport, they wo!ld know e$actly when the oods wo!ld arrive#

Goods receipt – After the oods have been delivered to *ar!m, Denmark by the s!ppliers, the

delivery note is taken and caref!lly compared with the act!al oods that are loaded on the tr!cks#

Any mistakes that are made are marked on the delivery note and a remark is later on entered

man!ally in 1avision#

0uality control – The prod!ction process of the oods is mostly man!al# 4ther actions s!ch as

material processin and finishin are viable only towards semi.man!fact!red oods, and these so

called actions are carried o!t by the companys s!b.s!ppliers# hen prod!cin individ!al

devices, it is done so by only one specific employee, whom from here on o!t, is responsible for

the entirety of the device# :rod!ction is proceeded thro!h a sheet of paper with a drawin of the

device, which has been drawn !p and approved by the research and development ro!p and the

"!ality control department as well#


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9/23

?@oller pointed o!t, that only abo!t 7(> of the prod!cts are c!stomized, and that increasin the

stock size of finished oods co!ld possibly solve some problems related to lon delivery times#

Stock mi1 – Medico Electronics prod!cts incl!de brain stim!lation devices as well as systems

for skin treatment# Appro$imately half of the oods prod!ced by the company are !ni"!e, withc!stomer specific modifications in desin and even f!nction# The remainin oods are standard

ones#

Goods storing – Medico Electronics wareho!se mainly contains raw materials and semi.

man!fact!red oods# hen the ordered oods arrive from the s!ppliers, the delivery note is

taken and caref!lly e$amined to determine whether the arrived oods match what is shown on

the delivery note# Any s!rfaced problems are marked on the delivery note, and later on a remark

is entered man!ally into 1avision#

Out/ound transport – *inished oods are sent directly from the wareho!se stated in *ar!m,

Denmark to c!stomer all over the lobe# 4rders that are meant to be delivered to c!stomers in

E!rope are !s!ally sent by tr!ck, b!t shipments that are s!pposed to o overseas end !p bein

sent by airfreiht, d!e to time considerations, as the company is already facin problems with

lon delivery times# Medico Electronics possess no contract!al delivery companies, as ?@oller

insists on findin as low transport prices as possible, d!e to this, the company !ses many

different carriers#

)ransport papers – 1o information provided reardin transport papers#

Pick and pack – 4nce a prod!ction order has been initiated, a wareho!se employee walks

thro!h the wareho!se with a pickin list in his hands and fills !p a carton with the oods needed

for prod!ction# As Medico o!tso!rces a part of its prod!ction to their collaboration partners in

:oland, there are sit!ations where certain parts sho!ldve been on stock in *ar!m, are instead in

:oland, which res!lts in !navoidable prod!ction delays#

%ustomer service per segment – 1o information provided#

Sales and $arketing


10/23

Sales /udgets – 2n the iven e$cel sheet, we can see that the companys sales are increasin

every year, and with the *DA approval on ) of their main prod!cts, the company is e$pectin an

increase of do!ble the profits#

%ustomer segmentation *2,%+ – Medico Electronics most profitable areas and mainc!stomers are, as followsI Scandinavia, 8SA and


11/23

Administrative order handlin ; e can ass!me it is short, since the staff either visit c!stomers

directly and make areements with them, or work thro!h partnerships with wholesalers within

the medical sector#

Technical order handlin ; e can ass!me it is "!ite short#

:!rchasin delivery time ; B7> of materials are received from Eastern E!rope, mainly :oland,

and it was mentioned that it takes 3.%( days more to receive the prod!cts than ettin them from

Danish s!ppliers, so we can ass!me that it is rather lon in this sit!ation#

:rod!ction delivery time ; 4rders are bein sent to the loistics manaer of the company :o!l

?@oller, who adds a date of delivery to the order and then he sends it f!rther to the prod!ction

planner# All prod!ction plannin is worked o!t on an e$cel sheet# The prod!ction process of the

oods in this company is man!al, mainly assembly of parts# 4ther processes s!ch as material

processin and finishin are carried o!t by the companys s!b.s!ppliers# :rod!ction of the

individ!al device is typically done by a specific employee# So we can make an ass!mption that

this step is rather lon as well#

Distrib!tion delivery time ; 2nside E!rope, Medico Electronics is !sin tr!cks for deliveries, b!t

for most overseas b!yers, orders are bein sent thro!h air freiht d!e to time considerations# As

Medico Electronics is facin delivery time problems, we can ass!me that distrib!tion delivery

time is not short as well#

Stock service

The percentae of prod!cts that are bein delivered directly from stocks is %((>#

3elivery o/servance

Altho!h it is not said m!ch, ME has to !se air freiht for overseas deliveries, so we can ass!me

that most of their deliveries reach its b!yers on time#

3elivery fle1i/ility

:rod!ct fle$ibility ; Medico Electronics only prod!ce brain scanners and skin treatment systems,

they are not c!rrently addin any new prod!cts to their assortments, only o!tso!rcin a part of

their semi.man!fact!red oods to :oland#


12/23

*!nctional fle$ibility ; The company is only foc!sed on medical technoloy#

Jol!me fle$ibility ; The !s!al order only weihs between )7 ; '(( k#

Distrib!tion fle$ibility ; Medico Electronics is !sin a n!mber of different transportin

companies for E!ropean deliveries thro!h tr!cks, and is !sin air freiht for overseas deliveries#

3elivery information

Medico Electronics have no contract!al companies that wo!ld do the deliveries, as :o!l ?@oller

is always tryin to find the cheapest company for delivery#

ogistic cost

4arehouse cost

4peration ; Altho!h no information is provided abo!t the costs of operation, Medico

Electronics facilities are located in *ar!m, Denmark, so we can ass!me that operation costs are

"!ite hih#

Damaed oods / aste ; As Medico Electronics is a make to order based company, their

shelves are not overstocked and they do not have prod!cts that have stayed on the shelves for too

lon, so there is no acc!m!lated waste that they need to spend money on to take care of#

8nsaleable ; There is no !nsaleable prod!cts inside the wareho!se#

2nterest on stock val!e ; 1o information provided#

)ransport cost

2nbo!nd ; B7> of materials are bo!ht from the s!ppliers in Eastern E!rope, where transport

costs are not as costly as it is in Denmark, so we can ass!me that it sho!ld rather be low#

2nternal ; There is no internal transport happenin in this company#

4!tbo!nd ; :rices are really low, since :o!l ?@oller always tries his best to find a delivery

company for as cheap as possible#

"andling and packing cost


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:lacin ; 1o information provided, b!t since these steps are happenin in Denmark, we can

ass!me that it sho!ld be rather costly#

:ickin ; .##.

:ackin ; .##.

2dministrative cost

Aside the p!rchasin assistant, who is ettin paid 63#((( D?? monthly, spent %B million D??

in the year of )(%7 to pay o!t all the salaries and waes# Aside this, the companys 2T systems

are not top rade, so we can ass!me that money spent on the 2T part is not so hih, b!t the

combined costs tells !s that the administrative costs of this company is rather bi#

Shortage cost

Cost arisin from c!stomers b!yin at another s!pplier ; Altho!h there is no s!ch information

provided, we can safely ass!me that s!ch costs are not a bi problem to Medico Electronics, as

they deliver what they promise on time, aside a few mistakes with their


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their c!stomers# Seein as Medico electronics c!stomers are medical instit!tions and a n!mber

of lare and respected !niversities all aro!nd the lobe, c!stomer loyalty plays a h!e part in this

also#

)hreat of su/stitution

Medico Electronics is not the only company that is prod!cin hih.end medical technoloies#

Altho!h the company is c!rrently facin problems with one of their main b!yers, lower than in :oland# To add, as Medico Electronics is facin problems with delivery time

from its s!ppliers of raw materials and semi.man!fact!red oods, they have to !se air freiht for

overseas delivery, which we can ass!me res!lts in short delivery times despite it bein rather

costly than !sin other transportation methods#

%ompetitive rivalry

Altho!h there is not m!ch mentioned abo!t Medico Electronics competitors, its main one is

8SA, in which the medical companies are many times larer# The companys shares in 8SA

amo!nt to ))>, b!t since a few of the most important prod!cts have been *DA approved, ME is

e$pectin to pave the way for obtainin a m!ch larer share of the American market in the near

f!t!re#

,uyer power

Medico Electronics have market shares all aro!nd the lobe, as the instit!tions are overnmental

!niversities, pharmacies, hospitals and etc#F# The main ones are Scandinavia, 8SA,


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aain enco!ntered another problem, in the matter of brakin on the hihway, some of the caro

ot damaed, res!ltin in a %(((((dkk loss# *!rther mistakes miht have a bad impact between

these two companies, and if Medico were to lose one of its main c!stomers wo!ld be a h!e

impact on their profits#

Supplier power

ithin most of the areas, Medico Electronics had been !sin the same s!ppliers for many years,

of which one had been in cooperation with Medico from its start# +owever, in recent years many

of the s!ppliers in Denmark that Medico had been !sin became too e$pensive for the company,

and they had to t!rn their attention towards Eastern E!rope, where the prices are appro$imately

%7> lower than in Denmark# 1ow B7> of all p!rchase orders are bein made in Eastern E!rope,

and s!pplier in Denmark are bein !sed only when there is an !rent order#

(%W%-%.

Strengths

4ne of the strenths that Medico Electronics possess is the eoraphical position# 6 of their main

b!yers are Scandinavia,


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factors on t!rnin down s!ppliers from China, who offered %(> lower prices than in :oland, d!e

to "!estionable "!ality and lon delivery times# Another h!e weakness inside that company, is

that they possess no contracts with delivery companies, as ?@oller always tries to find the

cheapest one instead of formin connections with delivery companies, which in the lon r!n,

wo!ld prove to be m!ch more !sef!l rather than tryin to save money on delivery services#

Opportunities

Even tho!h havin no over.stock inside the wareho!se is a strenth, keepin larer stocks of

finished prod!cts inside the wareho!se wo!ld prove to be a ood benefit for the company, as it

co!ld solve some of their iss!es reardin lon delivery times#

)hreats

As mentioned in the case, receivin materials from their s!pplier in :oland res!lts in a delivery

times 3 to %( days loner than from s!ppliers in Denmark# This is ca!sin a lot of problems in

the delivery section# Another threat is that the company has no contract!al delivery companies,

havin to always find one in the case of a needed delivery# Medico Electronics faced problems

d!e to this, where they had a total loss of 7((#((( dkk in @!st ) shipments, one where the oods

were taken by an irrelevant driver s!rrender of oodsF and the other where a driver, d!e to a

brakin accident, damaed the oods with a loss of %((#((( dkk#

.ransport la

.ssue no5 6

The first problem, that ME is facin with transport law is when a lare hospital in *rankf!rt,


17/23

pallets# ?@oller, as !s!al, was on the looko!t for cheap transport, and as the vol!me of the order

was rather bier than !s!al, he decided to !se Timo Com# A delivery ro!p by the name of

1ael


18/23

sit!ated in this co!ntry m!st take place by p!blic a!ction or by other reliable means# The carrier

m!st notify well in advance the person entitled to dispose of the oods abo!t time and place of

the sale# Sale of oods o!tside the co!ntry shall be determined by the law or c!stom of the

co!ntry where the oods are sit!ated# 6# The proceeds of the sale, after ded!ction of the chares

d!e !nder the consinment note and other e$penses chareable aainst the oods, shall be placed

at the disposal of the person entitled to dispose of the oods# 2f these chares e$ceed the proceeds

of sale, the carrier shall be entitled to the difference#Fand )0 The carrier shall be liable for loss of

the oods and for damae thereto occ!rrin between the time when he takes over the oods and

the time of delivery, as well as for any delay in delivery# )# The carrier shall, however, be

relieved of liability if the loss, damae or delay was ca!sed by the wronf!l act or nelect of the

claimant, by the instr!ctions of the claimant iven otherwise than as the res!lt of a wronf!l act

or nelect on the part of the carrier, by inherent vice of the oods or thro!h circ!mstances

which the carrier co!ld not avoid and the conse"!ences of which he was !nable to prevent# 6#

The carrier shall not be relieved of liability by reason of the defective condition of the vehicle

!sed by him in order to perform the carriae, or by reason of the wronf!l act or nelect of the

person from whom he may have hired the vehicle or of the aents or servants of the latter#F# The

transport process is only held completed once pararaph )0, is filled by the consinee of the

oods# :araraph )) is the consinor of the oods, which is Medico and pararaph )6 is the

transporter in which the name and sinat!re of the driver are filled in followin the stamp of the

transport company# The consinee of the oods, the transporter of the oods and the consinor of

the oods, all three have to p!t their stamps on the pararaphs and send a copy to each other for

proof of completion# Apart from these pararaphs, there are pararaphs %', )7 and )'# 2n

pararaph %' the information of the transport company is iven# :araraph )7 is for the tr!ck and

trailer n!mbers# :araraph )' is for the type of the tr!ck and trailer# These pararaphs are all

filled !p by the carrier and the end res!lt is that, 1ael has no a!thority and no win sit!ation in

this case# =!t Medico accordin to the information miht be liable for the loss of oods if they

havent checked and analysed the doc!ments for any s!spicio!s details# Medico sho!ld have

otten a copy of the CM from 1ael to p!t stamp and with, which the drivers doc!ments co!ld

be compared# The SD Special drawin rihtsF m!st be calc!lated for val!e of oods 0((,(((

dkk for compensation#

.ssue no5 -


19/23

The second problem s!rfaced as Medico Electronics prepared another order for *rankf!rt,


20/23

?@oller saved a few tho!sand dkk by findin cheap shippin companies, everythin went

to the bottom as @!st ) shipments, where it was even s!pposed to be only one, the loss

that the company had was bi# +avin to constantly hire new shippin companies, yo!

can never e$pect how they are oin to treat the delivery and how ood are they at their

@ob# Tr!st is a key element in this part, especially when Medico Electronics oods are

val!ed rather hih# Medico Electronics is in need of tr!stworthy shippin companies, as

they are as well facin delivery time problems#

)# Another problem that 2 wo!ld like to mention in my report is how Medico Electronics,

+enrik Carlsen to be e$act, ref!ses to increase the stock size of some of their oods in the

wareho!se, pointin o!t that G4e produce to order and do not wish to tie up our

money in finished devices which could risk /ecoming o/solete7 as product

development is so rapid in this industryH ; A c!t of te$t taken o!t from the 6

rd

semester interdisciplinary case of Medico Electronics# The Sti and ?@oller had a co!nter ar!ment

to this, statin that only abo!t fifty percent of what they prod!ce is c!stomized oods and

that increasin the stocks of their finished prod!cts co!ld possibly help in solvin their

already lon delivery times# The ar!ment was left at that point, with no f!rther decision

bein made on this matter# Seein as Medico Electronics is already facin delivery

problems d!e to not havin contract!al carriers at their disposal, not havin eno!h stock

enforces this problem even more# There had been cases, where a certain type of oods

was s!pposedly located on the shelves that sho!ld be picked !p for delivery was not

there, and it wo!ld be fo!nd o!t that the said prod!cts are on the shelves in the wareho!se

in :oland, where Medico electronics o!tso!rce a part of their semi.man!fact!red oods,

and it takes rather lon to deliver the said oods from :oland to Denmark instinctively#

6# The 2T sector of the company had not been iven hih priority before# 2nside the

company, there is no real E: enterprise reso!rce planninF system as s!ch, as they are

!sin a rather old version of 1avision# The system 1avision had !nderone a n!mber of

ad@!stments to meet the re"!irements of the company, which is all done by a one.man

cons!ltancy aency from Mon# 2t is rather diffic!lt to maintain this old version of

1avision to keep !p with the company, and convertin the system to a new version

proves to be diffic!lt as well# D!e to the system bein o!tdated, a lare portion of paper.

based systems still remain in the company, where they are developed thro!h e$cel by

individ!al employees of the company#


21/23

0# Medico Electronics main armada of s!ppliers are located in Eastern E!rope, specifically

:oland# They had to t!rn to the s!ppliers in :oland d!e to the prices bein too hih in

Denmark for the company to keep tabs on anymore# +avin s!ppliers in Eastern E!rope

res!lts in lon delivery time, and if a problem wo!ld occ!r where a batch wo!ld not

safely reach its destination, Medico Electronics wo!ld fall into delay of prod!ction and

possibly become !nsatisfactory for their c!stomers#

(olutions2% 7or this problem8 a good solution ould be for the company to ha)e a safety

stoc9% (afety stoc9s are held hen there is uncertainty in demand8 supply or

manufacturing yield: it ser)es as an insurance against stoc9outs% 3asically8 a safety

stoc9 is an additional ;uantity of an item that is being held in the in)entory8 inhopes of reducing the ris9 that the company ould run out of that product% (afety

stoc9 is used as a bu Information ta9en from i9ipedia articles% ?a)ing a hedge

in)entory ould also pro)e to be useful in the future in case of problems occurring

ith suppliers% In)entory created to protect against a possible future e)ent or

disruption in supply8 such as a stri9e8 ma5or )endor shutdon8 prospecti)e trade or

go)ernment program change8 or similar situation%

1% 7or the problem related to not ha)ing any contractual carriers8 signing long term

partnerships ith shipping companies ould be a lot more bene,cial than ha)ing to

hire ne ones e)ery time you need to ma9e a deli)ery% With long term partnerships

also come long term relationships8 and there is ;uite a fe bene,ts that the

company ould gain from this% .hey might ha)e reduced costs8 seeing as edico

lectronics deli)eries are not big @2" > 6009g they ought to be rather constant8 the

more deli)eries you do8 the more the carrier company shall pro)ide fa)orable prices%

/% .he mista9e that edico lectronics made8 as ho they disregarded their

Banish suppliers due to increased costs% 7orming long term relationships ould

result in 1% Reduced costs% 2% Increased e*ciency and communication% 6% $ontinual

impro)ement% Points 1 and 2 are especially good for edico lectronics8 as they are

9een on sa)ing money here it is possible% Increased e*ciency and communication

means shorter deli)ery times8 hich ould pro)e to be e=tremely bene,cial for thecompany%

$onclusionTo s!m !p my report, 2 wo!ld like to say, that if the company wants to f!rther e$pand its

b!siness, they sho!ld tend to their problems as soon as possible# C!rrently, the problems are of


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no h!e threat to the company, b!t solvin these problems wo!ld help them improve in the near

f!t!re and possibly be on the same level as their main competitors in America#

3ibliography .hesaurus

&arious i9ipedia articles

3usinessdictionary

$R con)ention

aterials used from fronter

ReferencesWi9ipedia


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Documents

UdrysThirdSemesterRe Examination