Meditech introduces a new commodity each month, an improved version of the pre-existent, resulting in a shortened commodity lifespan. Material managers occupy the most significant portion of Meditech’s customers. Their only focus is pricing and delivery plans than the distinctive traits of a product, thus breaking the bible principle in Mark 8:36; only healthy profit is acceptable despite business being out for profit.
Meditech fails to put effort into comprehension of demand dynamics all through a commodity’s lifespan. Time-to-market versus competition and product diffusion are two qualitative characteristics that have been identified as significant drivers of success for the neo-product introduction.
Each new commodity needs a run-up time of approximately 5-19 weeks, excluding the design phase, which is very high. Neglect of after-sales service for older products is due to the focus put on by the sales teams to propel the neo-product into the market.
The constant launches have led to shortages in supply, delayed deliveries, minimal client service, and gratification, flawed predictions, and heightened FG inventory levels. Meditech’s product range includes over 200 distinct end-products, and the number is growing. Because of the breadth of its product offerings, Meditech is significantly reliant on suppliers, with lead times ranging from 2 to 16 weeks.
As a result, utilizing a just-in-time strategy to minimize time and expenses spent on manufacture and distribution in Meditech becomes non-viable in this instance. A lengthy scalar chain characterizes the organizational structure of Meditech. Information transmission becomes challenging with the increased volume of goods in the portfolio.