In order to reach such a status, manufacturing divisions must meet a series of requirements of OEM customers.
This means that manufacturing divisions must provide high quality products and services, the prices must be established in accordance with the products' quality, with customers' possibilities, and with the prices practiced by the company's competitors.
The manufacturing divisions are organized as profit centers, which means they are allowed to develop and implemented their own customer and sales strategy, with the condition of aligning these strategies with the general strategy of the company. It is more profitable for them to address the needs of OEM customers sometimes in the detriment of AM Manufacturing.
It is the top management's decision to not allow AM Marketing to sell other companies' products. Therefore, if the top management decides that the manufacturing divisions are discriminating AM Manufacturing, the managers can change the situation by allowing the division to sell certain products of other companies, based on a series of conditions agreed by the company and by AM Manufacturing.
Another issue that the company's top management must address is represented by the inventory situation. Given the fact that inventories within the company are considered to be excessive by the controller, it seems that the company is not able to develop and implement a suitable inventory strategy.
It is not defective inventory management if the divisions conduct excessive inventory. This is because this way, the divisions guarantee that their stocks are in accordance with customers' demands. Even so, the fact that these divisions conduct inventories that often, denotes inefficiency regarding inventory management.
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