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Riordan Manufacturing is a global industry player in the production of plastic products. It currently has a labor force of over 540 workers and an estimated $45 million in annual incomes. The company generates creative plastic designs that are known worldwide. Riordan manufacturing is quite successful because it employs efficient quality control measures and precision measures in its operations. The company has a number of branches located in California, San Jose, Albany, Pontiac, Georgia, Hangzhou and Michigan. Riordan Industries, with over $1 billion in annual earnings, is the sole owner of the company. The major aim of Riordan Manufacturing is to attain and sustain sound earnings to enable it afford and retain human and financial capital needed for growth. However, the company must do more. For instance, it needs to make sure that its operations are modernized and upgraded via the adoption of advanced technologies (Shaik1).

Riordan currently uses a manual process in its production and supply chain management. The manual process is applied right from the moment the company receives raw materials up to the time the final product is delivered to the client. The manual procedures are susceptible to human errors which, in the long term, may result to a rise in production cost, inventory loss and consequently a decline in profit margins. As of now, a hardcopy is used to record all raw materials and finished goods that are either stored or remitted to customers and the same information is send to several departments for processing. Thus, Riordan need to implement an online system that integrates and updates all data received from all departments for example, raw materials received, procured items, and the volume of final products send to customers etc. the company need to adopt a computerized barcode scanner to reduce human errors and enhance efficiency (University of Phoenix 3).

The company also runs an inventory management and control plan that outlines precise procedures to be adhered to by all facilities with regard to receiving, production processes, and ultimate product shipping. However, it is worth to note that each plant has modified and implemented the plan in their production processes to match its unique conditions. For instance, the plant in Albany stores an emergency stock of specific raw materials if quick delivery is needed, whereas the Hang Zhou’s plant, which makes end products, keeps stocks of the end products until it is sold. However, these plants are facing myriads of problems. For example, apart from the storage outlays associated with keeping stock of raw materials, and end products, the Albany and Hang Zhou plants are also experiencing on-time delivery problems from their suppliers. This is due to the fact that the key features of the company’s MRP system focuses on procuring raw materials and inventory, bills of raw materials, scheduling production activities, storage, shipment, and payroll. It is thus vital that the company install an efficient MRP system that will reduce inventory costs that arise from keeping stock of emergency raw materials and products (Shaik 3).

Enterprise and product liability

The Riordan plant located in Albany, Georgia produces both customized and standard bottles on the basis of annual agreements entered to with its clients. The clients usually make an annual blanket order that they present to Riordan in parts all through the year. However, this procedure means that the company must stock a huge amount of raw materials and end-products to satisfy the unanticipated demand from its clients. As a result of this procedure, the cost of inventories goes up. One way that Riordan can reduce these costs is by requesting estimates on monthly or quarterly basis from its clients. Such estimates would then be integrated in the MRP system and analyzed to determine the optimal level of safety stock to be kept to meet customers’ demands. Riordan will thus be able to reduce storage costs, improve delivery and modernize its Supply Chain Management process (University of Phoenix 5).

The Hang Zhou production plant in China is also facing high inventory costs as a result of huge stockpiles of end products for speculation purposes. The plant currently runs a custom operation and stock operation. These operations are run independently with respect to procurement of materials, inventory management, stocking and shipping of end-products. The Hang Zhou plant estimates the annual volume of fans demanded by customers using the average data of the last three years. The high inventory costs arise because the plant procures motors -used to produce fans for storage purposes- from a single dealer. In order to reduce these costs, Riordan must adopt an efficient MRP system that should include about three dealers so as to optimize its inventory and planning control. The Hang Zhou plant also makes customized fan products for its clients. The plant plans to initiate a pilot program for customized fans. The aim of the pilot program is to create various types of custom designs and also estimate the initial outlays of the new designs. Once this program is operational, clients will be allowed to make annual contracts that will specify the amount of stocks to be delivered throughout the year. It is thus imperative that Riordan implement an efficient MRP system that will ensure an optimal stock of raw materials and end-products to sustain customers’ needs throughout the year. The system will also enable the China plant augment its production efficiency and reduce inventory and materials outlays (University of Phoenix 7).

The Riordan plant located in Pontiac, Michigan runs a customized shop and has a large stock of materials at hand that can be used to produce personalized plastic parts on a short notice. The plant also requires dye in large quantities to meet unique requirements of the customers. The plant must also generate monthly or quarterly estimates from their clients to help reduce inventory outlays associated with operational activities on short notices (University of Phoenix 8). The R&D department is situated at the San Jose, California plant. The department is made up of five product development staff whose mandate is to explore, design and produce new products. The R&D department is different from other facilities because it requires a small amount of raw materials to developed novel products. The department does not have any supply management problems like other plants as it doesn’t keep stock of raw materials and end-products. Thus, there are no adjustments needed for the MRP system for this department (University of Phoenix 9).

Tangible and intellectual property

As noted in the preceding discussion, Riordan has a number of tangible manufacturing facilities in Hangzhou, China; Pontiac, Michigan; and Albany, Georgia. Riordan has embraced e-business in its entire processes: electronic procurements; supply chain management; processing orders; customer management services; and collaboration with other business associates such as suppliers and vendors. As much as E-business has facilitated smooth operation in all Riordan plants, it has also brought about a number of business risks such as intellectual property rights problems. Riordan has several intellectual property rights for example: copyright, patents; trade secrets; trademarks; domain names; and trade names. All these properties are vital to the company’s business performances and are well protected by state and federal laws from breach and misuse. On its official website, the Riordan has stated its official business name (Riordan Manufacturing, Inc) and its accomplishment in the plastic industry (Shaik 3).

Riordan has thus has a responsibility to register all brand names associated with its operations to protect its trade secrets. In addition, the company’s official website needs to be improved because the homepage lacks normal features that are common in many other internet sites. The webpage lacks several tabs such as: home; about us; contacts; employment; and your accounts icons. On the contrary, it has a single simple page with a Riordan logo on the top left side of the page. On the left side of the homepage, it has a short list of various products and services offered by the Riordan Manufacturing Company (Shaik 4).

Alternative Dispute Resolution (ADR)

All legal issues pertaining to Riordan’s operations are handled by Lowell Bradford, who is a Chief Legal Counsel. However, there are certain complex legal matters that Bradford cannot manage and which are transferred to Litteral & Finkel law firm. All cases sent to Litteral & Finkel law firm are however assessed and approved by Mr. Bradford before they are formalized. All matters pertaining to Riordan’s patent applications are handled by Mr. Bradford with assistance from Rick Ethridge. Since Mr. Bradford is about to retire, the company needs to find an ample replacement since, as it stands now, all tax issues, litigations and issues related to real estate are managed by Litteral& Finkel law firm. It is worth to note that Riordan Manufacturing has been represented by Litteral & Finkel law firm since it started its operations. As a result, the company pays the law firm a monthly fee to ensure that Riordan receives timely legal services when need arises (University of Phoenix 10).

Litteral &Finkel law firm usually charge their legal fee against the monthly retainer when a legal matter arises. In the case where the monthly retainer fee is not used, the law firm does not remit it back to Riordan. This is one critical element that must be addressed when the Riordan renews the contract with Litteral & Finkel law firm because the company is forced to pay for legal services even when it does not need it. Litteral & Finkel law firm has a large pool of lawyers, paralegal, and administrative clerks that it can use to manage legal needs of Riordan on a global scale. The law firm operates globally and therefore it is able to send any of its attorneys from its closest offices within a short period of time to offer legal counsel or represent Riordan in any legal dispute in a court of law. However, of late, the law firm has a backlog of Riordan cases pending in court, some of which are close to three years old. Riordan therefore needs to review its contract with the law firm so that all pending cases are addressed immediately (University of Phoenix 11).

Works Cited

Shaik, Safe. “Website Comparison Paper Organization.” University of Phoenix Student Website. 2009. Web.

University of Phoenix. “Riordan Manufacturing.” University of Phoenix Student Website. 2008. Web.

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