Texan Foods Case Study Example | Topics and Well Written Essays - 500 words

Texan Foods - Case Study Example Benefits derived from the collaborative sharing of information through the system are numerous. Businesses attain less stock-outs, more accurate and better forecasts, more powerful visibility of stocks, increased sales, a lower on-hand inventory, and a decrease in the costs of goods sold. The above mentioned benefits motivated the employees of Texan Foods and Valley Backers to aid a hand to ensure the success of the pivot study conducted. Despite the increase in the sales of some of the commodities offered by Texan Foods, there were various problems that needed to be addressed. The forecasts had been out-spaced by the inventory holdings of some category of stock such as backed goods. Moreover, the supply metrics for these commodities did not meet their mark. In addition to these, there was an unexpected rise in the stock-outs at the Distribution Centers from 5% to 7%. The percentage was steadily rising to 10%. Valley Backers, one of the suppliers was also expressing their concerns regarding the inconsistencies in the stock orders. The implementation of the system faced very many challenges. Preliminary agreements between the firm and Valley Backers were drafted. The type of product to be piloted and the level of collaboration required were agreed upon. However, both companies had different expectations on the methodology of carrying out the pilot study. We wanted to start at a slow rate, sharing only a small range of data on pricing and sales, while Valley Backers wanted complete access to all the databases including competitors’ products and pricing data. We did not agree on the number of products to be tested and the duration of the pilot study. Moreover, employees who had shown much enthusiasm for the system lost their morale as the time elapsed. However, some employees who were hesitant at the beginning became more willing to take up the task and assist in its