Name : Hosam Ali alzaydi
Student number : 238578
Name: Hosam Ali
Project: MGMT 3450
I got a great
chance to meet Mr. Chauncey Smith . Who is PharmaceuticalBiotech Segment
Marketing Manager at Thermos Fisher Scientific . Thermos Fisher Scientific is
an american multinational biotechnology product development company is located
in Pittsburgh . (” unique combination of
innovative technologies, convenient purchasing options and a single solution
for laboratory operations management. Their products and services help
customers solve complex analytical challenges, improve patient diagnostics and
increase laboratory productivity.” ) . Also he is the owner company of Market
SMITH Services, LLC . He has spent most of his working experience in sales
& marketing & Product Brand Management and management .
These are the
What kind of
demand strategy do you use ? Do you use an enterprise resource planning (ERP)
does your department work with or the
plan strategic with other departments like sales ,productions , pricing
departments , ? Facing Any issues?
How do the
production plan and MPS relates to sales , marketing , price department and forecasting ?
distributions planning system in the company
pros and cons of decentralized distributions systems ?
The systems of
placing orders and keep tracking how is it controlled ?
familiar with Cost Analysis tools? Can you mention any statistical tools you
have experience working with.
To make a
report about production costs, what method would you use?
Can you list
the purchasing cycle in your company ?
What are the
responsibility of purchasing department follow up ?
Last thing if
you could give us a little hint about the influence in negotiation contracts .
Chapter 2 : production planning system .
planning is the first step in planning of production and manufacturing modules
in a company or industry. will use all the resources in the company from any
activity have been in the company to serve the clients in the plan of
productions . (output) . while meeting the company objectives regarding profit,
productivity, lead times, and customer satisfaction to the major goal which is
the plan .
production-planning process start with
decrease in inventory or backlog levels
the production plan.
Chapter 8 : forecasting
This chapter discusses forecasting. It explains
that this concept involves using the historic information to determine future trends.
It is a decision-making tool that helps many companies in budgeting, planning
as well as predicting future outcome basing it on management insight and the
past events. There are two types of forecast: quantitative and judgment–based.
Using the two types of prediction helps in supporting their strengths, as well
as justifying their weaknesses.
Judgment forecasting is the use of experience
and intuition. Mostly, people use their mind to connect the past happenings,
and the present to predict the future (Chapman, Clive, Arnold, 2016). This
method is biased and cannot be used by projecting organizations. It is best
used where there is no historical information, for example, in new product
launches, innovative growth, and competitive actions. Quantitative forecasting
is analyzing a significant amount of knowledge of the past to discern future
patterns and trends. It is the best forecasting method that is not biased since
figures are used to calculate the next outcome. However, it can provide the
wrong result when using less past information. It relies on identifying
patterns repeated in data. A combination of the two types of forecasts, that is
quantitative, and judgment tend to provide excellent results.
When creating a forecast that has a limited
scope, it is essential to use qualitative forecasting models. Such models are
not reliant on the opinion of the experts and are beneficial in the short-term.
Some good examples of qualitative forecasting models are market research,
survey, and polls. They all use the Delphi method. The qualitative approach of
forecasting does not need experts’ opinions.
Work place tour and result :
The interview was a good outcome at the end.
The opportunity to meet a person in an important company and apply what I learned
in the class by explain to me how is it work actually in the real world work .
The company has more distribution system than
most of its production so perhaps this is the only point in the non-seeing
process of production line or inventory because their inventory places in so
many states .
Mr. Smith try to respond all my questions and
communicate with other departments to answer me. He was an expert in all the
answers with his long knowledge for more than 30 years’ experience in sales
marketing operation positions that he was in charge .
What kind of demand strategy do you use?
Do you use an enterprise resource planning (ERP) system?
Yes, we use Enterprise Resource Planning (ERP)
to integrate application to automate most of the back office functions that are
related to technology, human resource, and other services. ERP integrates all
functions and helps in the proper management of the entire firm.
Explain how does your department work
with or the plan strategic with other departments like sales, productions,
pricing departments? Facing any issues?
My department works well with all units with
the help of Enterprise Resource Planning (ERP) which integrates data from all
subdivisions including marketing department. This data helps the production unit
to know the items they need to create. The sales managers can identify the
available products and the pricing department can give a price for such
commodities basing it on the cost of invention and the profit margin. The only
issue we are having is that some of our competitors are selling their goods at
a low price forcing us to drop our price.
How do the production plan and MPS relate
to sales, marketing, price department and forecasting?
A Master Production Schedule (MPS) and the
production plan depend on information from the sales, marketing, price
department and forecast department to plan each commodity that requires value
addition. For instance, the amount of raw material needed, the number of staff
necessary in production, and the time required.
Describe the distributions planning
system in the company?
The marketing department ensures that they promote
the products through email to the existing customers. We also use brochures which
are distributed to our target clients. We also publicize using social media
platforms such as Facebook, Twitter among other media such as TV. The
salespeople deliver to the customers. Plans are underway for dispensing to our
online customers through airways and other fast means of transport.
Describe the pros and cons of
decentralized distributions systems?
Firstly, distribution is comfortable and faster
in a decentralized system because of the customer’s service from the
distribution center close to them. The other advantage is efficiency because
the orders are not as many as they would be in a centralized system. Therefore,
there is no likelihood of delivering a request to the wrong customer. One of
the disadvantages is that it is expensive to use different distribution lines.
The systems of placing orders and keep
tracking how is it controlled?
can help in the placing of orders and keep track .There
is software that requires installation which will help track information about
the requests needed and also will help establish how much stock is remaining.
you familiar with Cost Analysis tools? Can you mention any statistical tools
you have experience working with.
my cost analysis typically has to do with when
we are looking to drive growth in each category. For example if we want to
increase the sales of a chromatography column or a chromatography product line
we’ll look at kind of the existing base of business. And again, we’ll assume
this is a consumable product that is repurchased over time and we’ll take a
look at modeling the impact of a decrease in price. What it does to our selling
margin obviously the percentage is going to go down. But in that case, you’re
trading off sales revenue in volume for margin. And typically, the analysis we
do there is to determine you know is that a palatable exchange in some cases
where you’ve got products with good margins it’s justifiable and you can do in
other cases it’s rather difficult.
make a report about production costs, what method would you use?
we are a distributor and so we don’t directly have production cost .
have loaded costs that the suppliers give us for the products that we are
distributing for them on their half on their behalf. So obviously we keep a
close eye on the costs that the suppliers are charging us and really try and
manage that process so that we’re not taking accepting costs increases over and
above what we think is reasonable. And that’s kind of the process there are purchasing
cycle. Again, it depends on the product category because we distribute more
than 2 million items. Some of them they are products that we stock in our
warehouse. And we refer to us franchise products. And then there are third
party products there are our biggest customers ask us to consolidate them
spend. So, things like water and office supplies could be some small industrial
supplies. We work with suppliers to be able to meet the needs of the customer
to be able to provide those items.
you list the purchasing cycle in your company? What are the responsibility of
purchasing department follow up?
the purchase time for instrumentation and I’ll say that those are items that
are above 50 thousand dollars in value the purchase cycle time on that can be
anywhere from six to 18 months depending on the source of funding the calendar
you know where it falls in the calendar and so forth.
that’s one portion of our business. There’s another portion we’ll call
consumables. Think of the glass beakers centrifuge tubes face masks gloves
those things that are purchased frequently. Our customers are typically
purchasing those you know anywhere from a one to three or four week cycle.
they don’t want to and in most cases don’t have a lot of chance to hold a lot
of inventory. So, they you know they purchase frequently from us.
think that covers regarding the responsibility of the purchasing department. So
that’s part of our supply chain and obviously they are looking at order
minimums and maximums to determine how frequently they should be buying. Clearly,
they are the key stakeholder in the process of following up. But again, it is
kind of dependent upon how frequently that happens based on the product
category or product type.
thing if you could give us a little hint about the influence in negotiation
as we negotiate with our customers and partners we’re obviously trying to
strive for a win win situation. We certainly don’t want to try and do the best
we can to manage our margin. We don’t want to do it at the expense of the
supplier. So, you want a long term relationship with these people. So it really
is kind of a give and take in some cases. We are pushing back hard on cost
increases that we don’t feel are justified or consistent with the market.
in other cases you know we’re accepting them understanding whether it’s energy
costs currency effects or other things that impact the business. It’s really is
you want to try to arrive at a win win situation. Clearly having a good idea of
what your costs are what your tolerance and lower limits are all goes into the
and implications :
Thermos Fisher Scientific Pittsburgh who is
responsible for marketing their protective equipment that includes gloves and
masks. The company designs its marketing base according to the customer types.
Most of his clients are pharmaceutical or biotech. They develop programs to
highlight products and services for these customers. I have discovered that the
most compelling way to promote customers’ products and services is through websites,
emails and having a significant sales workforce.
We can apply the lessons on how inventory
management is critical in the business of distribution and supply chain
management in class. For instance, all marketers should not carry exact
products to the market but should take some pieces over and above their expectation.
It is known as a threshold. If an average sale per week increases, then the
limit should also surge. I have learned about a system referred to as
Enterprise Resource Planning (ERP), which uses the same database in the entire firm
to store data is critical business operation. The team carries and sells simple
items such as tape and Petri dishes, as well as very sophisticated details like
progenitor cells. We can apply the knowledge on how ERP system helps them
monitor and manage all the brands they take to the market. I have learned that
to succeed in business today; it is essential to produce green products and
sustainable manufacturing processes.
Let’s plan for 2pm at my office. We’re located
off of the McLaren Road exit, on the Parkway going towards the airport. The
300 Industry Drive
Pittsburgh, PA 15275
Thanks for your help . It was so nice to meet
you in person . I think it’s all set with my project . If I have anything I’ll
let you know . Thank you again .
Hosam – You’re very welcome and best of luck.
Please let me know if I can be of assistance in the future.
Chapman, S., N,.Clive L., M., Arnold, T., R.,
J., (2016). Introduction to Materials
Management 7ed. Pearson.