Trico Case

Trico is losing competitive points to satisfy customer as well as compete in the market. There are internal and external problems that cause loosing competitive points. In general, the problems come from forecasting system, inventory management, quality control process and operation.

It is a tradeoff between customer’s satisfaction and inventory cost. Trico’s managers need to balance between service level and operating costs to maximize profit. In long term development, forecasting system ought to be improved frequently to release reliable material planning. In addition, calculating errors of forecasting and preparing back up plans must be concerned. It enhances flexibility in forecasting system. Trico also needs to work with their customers and suppliers to seek for supporting in sharing information. Furthermore, Trico needs establishing cooperation as a chain Trico’s suppliers – Trico factory – Trico’s customers to apply Just in time and EDI in the future.

Base on the situation that Trico needs quick respond for that problem and their capital is not good because of lost major contract from Toyota, short term solution with reasonable cost are preferred. Then when Trico can maximize their competitive points, they can start to reinvest for long term solutions.

Trico is losing competitive points to satisfy customer as well as compete in the market. There are internal and external problems that cause loosing competitive points. In general, the problems come from forecasting system, inventory management, quality control process and operation.

It is a tradeoff between customer’s satisfaction and inventory cost. Trico’s managers need to balance between service level and operating costs to maximize profit. In long term development, forecasting system ought to be improved frequently to release reliable material planning. In addition, calculating errors of forecasting and preparing back up plans must be concerned. It enhances