Reference no: EM132893648

Introduction

Winston Quick, owner of Insta Pot, recognized the need to organize a separate department to deal with service parts for the Insta Pot his company makes. The competitive strength of his company was developed around customer responsiveness of his product. He decided that a separate department focused exclusively on after-market service was critical in meeting this mission.

Winston established the department and named Beverly Pann, of his best clerical employees, to be department. Manager. In the beginning, the department operated in a small corner of the warehouse, but has now grown to occupy its own 50,000 square foot building. The service business has also grown substantially and now represents over 22% of the total revenue of Insta Pot. The exclusive mission of the service department is to provide parts (knobs, seals, lids, basket inserts, etc.) to the many retail businesses that sell and service Insta Pot.

While Beverly has proven to be an effective manager and now holds the title of Director of Aftermarket Service, she still lacks a basic understanding of materials management. Jimmy Potts was hired to help Beverly develop a more effective materials management program.

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