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Product supply strategy and contract manufacturing

You are the director of supply chain management for a $1 billion consumer packaged goods (CPG) company.

It is Friday afternoon, and you’ve just learned that your European factory is facing a major problem and won’t be able to deliver on schedule.

To make matters worse, two of your contract suppliers say they lack the capacity to deliver this week’s finished-goods schedule. For the past eight months, you have been battling a declining customer service rating. Your top customer has de-listed two of your No. 1 selling products because of failure to deliver. The company president has called and asked what you’re doing to rectify the situation immediately.

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