...Integrated Logistics for DEP/GARD MGT-309 May 10, 2015 RK Introduction Supply chain management is “multiple firms collaborating to leverage strategic positioning and to improve operating efficiency” (Bowersox, 4). Proper integration and management results in efficient and successful operations. Without effective supply chain management, business functions can fail through reduced reliability of delivery, frequent shifts in operations to make up for shortages in materials and delivery, which ultimately can lead to a reduction in a firm’s reputation. Customers want products and resources at the right time, condition, product, price, place, and person. DEP/GARD contract negotiations is a case where DEP has to improve its economic, market, and relevancy value to remain a supplier for GARD. Analysis Firms must constantly seek to improve operations to improve the customer perspective of value, from an economic, market, and relevancy perspective (Bowersox, 5). Without improving value, a firm can become obsolete and lose business. Under a new purchasing agent, GARD looks to improve its efficiency of operations. Currently the firm works within a 10 day delivery, plus or minus 2 days, which is a 5 day service window. If this is the industry standard, GARD will not have a competitive advantage over other similar firms and must continually seek to improve it operations. GARD seeks to reduce the service window to 3 days. This added value will improve GARD strategic position...
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...Course 616—Global Logistics Management Don Stuck (15-041). Lesson # 7 1.a. DEP/GARD DIAGRAM: (1) SUPPLIERS (six) to (2) DEP receiving to (3) DEP manufacturing to (4) DEP warehouse to (5) DEP/commercial transportation to (6) GARD 1.b. The stages adding value are: the performance criteria of the suppliers (product quality and timeliness in delivery); DEP’s advanced manufacturing equipment and ability to quickly change the manufacturing process; product packaging and prep for shipment; DEP’s internal transportation for delivery. 1.c The stages not adding value are: all of the time the compounds sit in the warehouse; the seven day inventory; the antiquated way (manual) they match manufacturing ticket with the purchase order and prepare shipping documents; possibly the use of common carriers and 6+ days of shipment (max). 2.Minimum order cycle time: 2 days shortest lead time for suppliers+ 6 days orders produced+ 3 days from manufacturing to shipment + 1 day shipping = 8 days minimum. Maximum order cycle time: 9 days longest lead time for suppliers + 8 days orders produced+6 days from manufacturing to shipment + 6 days shipping = 25 days maximum 3. Yes, the performance cycle can be improved using the 25/15% suppliers. The trade-offs are: the compounds may cost more vs. more reliability in filling orders; more cost vs. better service levels; greater reliability in filling orders vs. requirement to maintain high...
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...Case Study “Integrated logistics for DEP/ GARD” There are many leakages that may occur if the supply chain is not in proper control. For example, there could be delays in delivery of customer orders or even delays in reception of purchases by a manufacturing firm. Delays in processing customer orders pose a threat to a firm’s reputation with its customers. Customers may drift from a firm which has delays in processing customers’ orders. Also if, the procurement process of a firm experiences delays, this could add costs to the firm. It places the firm at an adverse relationship with its customers because there will always be delays in processing orders. It is, therefore, imperative for firms to streamline its ordering and customer deliveries in line with customer satisfaction and also for efficiency. Analysis and answers to questions: Guard аutomotive mаnufacturing (GАRD) is one of the оriginal equipment manufacturing (OEM) for US automakers basically producing variety of plastic products for the automobiles. To prоduce plаstic products GARD needs a best quality polymer which is the basic requirement to produce plastic products. GARD has been basically dependent on the Dupont engineering polymers (DEP) for the raw material DEP is supplying polymers to GARD since last 15 years. But this time with the change in management, Dupont has been awarded one year contract instead of 2 years generally. Richard Binish who has been appointed by GARD wants to review these contracts...
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