Lasseter is in serious trouble because the supply chain is not efficient information is not communicated from one partner to another. It's Friday and the toy shops are out of stock. When Jake calls packaging to ask them to ship more toys, Luke is very unhappy. He has 400,000 boxes, just delivered by Big truck, but no storage space. And there are no toys nd to put in all these boxes, Luke complains. Brendan, the production manager, can't make any because there is no more plastic!
Jake calls Polyplasto. They have pellets in stock, but m Big truck can't deliver them because all their trucks are rts busy. A Smalltruck driver is waiting outside Lasseter's factory, but there are no toys ready for delivery. Finally the bank manager is on the phone: there's no cash to pay the salaries. This is because suppliers are paid on delivery, but customers pay weeks or months later.
Fortunately, there's a happy ending when Jake installs new Supply Chain Management (SCM) software. Using automated systems, all the key business processes are integrated into a single e, system. Now Jake can plan all Lasseter's needs for materials, services, storage space, labour, credit and cash. Soon everything is more efficient. And everyone suppliers, manufacturer, customers and bank manager is happy again. ess processes are integrated into a single system.