Poor supplier performance had increased customer backorder and had lead to operational difficulties within the internal supply chain. The purchasing department did not have accurate information that could be used to update the ERP system and all functional areas that required information. The demand planners and production planners could not update the order fulfilment team as the purchasing team was not able to get accurate information from the supplier.
Internally there was considerable frustration as the customer was requesting information and the fulfilment team could not provide the requested. As a result of the failure to supply materials, discussions were conducted with senior managers of the suppliers management team, an alternative supply of material was sought and business transferred.