The company is losing market share due to its push concept based production strategy, and while the company has been striving to operate on short term production runs as per the demands of its customers it has been unable to do so. This is mostly due to the fact that the company is facing erratic delivery behavior for its procurements through the Sunshine Corporation as well as the delayed deliveries that are being made by the company. The company therefore needs to reestablish its relationship with the Sunshine Corporation which is productive and profitable for both companies.
The third crucial problem that is faced by the company pertains to its existent supply chain system. The company sourced its components through the Sunshine Corporation which produced the components in Taiwan. These products were shipped to the US where they were delivered by the Sunshine Corporation to the Denver plant for the Valkyrie Lighting Corporation. The company’s two stage assembly process uses the production of the core functionality of the product, with the second production stage relating to the customization of the product according to the demands and requirements of the customers. The contracts in the supply chain take orders from customers and though EDI get confirmed contracts for procurement of products by the customers of the company. While this supply chain method was effectively being utilized for the US operations of the business, it was not feasible for the European market where the concept for Edi does not exist.