David Cundy is feeling the pinch. He is marketing manager of Radiance Products, a company supplying lighting components to companies that in turn supply some of the major car manufacturing plants in the UK.

His customers’ customers include companies such as Honda, Ford and Toyota. He has had several complaints recently from his cus -

tomers concerning the level of service his company is providing with regard to some key areas. These key areas include the following:

n The order cycle time: this is felt to be too long compared to what the industry requires. Companies like Honda are con -

stantly looking for reductions in this time.

n Order status information: customers com -

plain that it is difficult to obtain information regarding the status of particular orders when they enquire. Currently a customer can only enquire about order status through writing or the telephone.

n Responding to emergencies: Cundy’s com -

pany is not felt to be flexible enough when it comes to dealing with unplanned events, such as emergency orders.

n Damaged goods: Cundy’s customers are beginning to insist on a zero defects policy.

Currently, the defect rate is approx imately 0.25 per cent of products delivered.

CASE STUDY QUESTION What steps can David Cundy take to improve the design and operation of the business logistics system in Radiance Products?