Principal of Management Team 2Project Management Consultants

1. Principal of Management Team 2ProjectManagement Consultants

2. Organizational Problems • The findings of our research have uncovered confusion over who is in charge of each department. This confusion is due to lapses in organization caused by the absence of an organization chart that defines the chain of command. • The stress has caused employees to become disenchanted with their jobs. This lack of order has caused the whole Southwest Distribution center to become less focused on its goals.

3. Operations Problems • Inventory policies were confusing and inadequate. • The procedures caused inefficiencies in the inventory purchasing department. • . The sales policies were confusing and this lead to inaccurate sales records. • Warehouse operations also need to have clarification of procedures. These problems in operation policy and procedures must be corrected.

4. Management Problems • The onsite review of operations revealed that the interpersonal communication and leadership skills of the Southwest Distribution center need improvements. • The overall morale of the team can be improved if the managers developed the correct skills for handling their subordinates properly. • Communication is the key to a successful organization.

5. Recommendations • We have developed a plan of action to correct the issues that were pointed out. • The corrections would provide an increase in profits at the Southwest Distribution Center.

6. Correction Suggestions • Organization • Create Organization Chart • Provide Job Description for each role • Promote Larry to branch manager • Operations • Receiving Process – report purchase orders that are past due • Metric – ensure there are no past due purchase orders at the close of the day

7. Correction Suggestions • Shipping – provided a detailed process with the use of SOP (standard operating procedure) • Metric – pick up tickets with 2:00 p.m. cut off to ship same day • All incoming and outgoing inventory must have a corresponding barcode attached • No inventory leaves the warehouse without proper documentation

8. Correction Suggestions • Organize inventory to maintain inventory control • All items should have a bin location • Implement cycle count • Return Process – no non-stock returns should be accepted from customer ; unless accepted back by vendor • Copy of return authorization form is required • Authorization form must be completed by branch employee • Inspect all returns at time of receipt • Generate report to show all RMA’s (return material authorization)

12. Conclusion • Team Two Consultants believe that a successful application of our recommendations and plans for implementation will correct the inventory discrepancies and increase profits at the Southwest distribution Center.