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De Havilland Inc: Supply Chain Strategy Case Study

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Module TWO - Supply Chain Management

DE HAVILLAND INC: Supply Chain Strategy Case Study

Prepared By: Pankaj Kapoor

Executive summary

De Havilland’s Dash 8 aircraft division has only a “year plus” inventory of Flap Shrouds and Equipment bay doors and now they have to decide if they want to continue sourcing these parts from same supplier “Dollard Plastics” a Montreal based supplier or should they start thinking of sourcing these parts from other potential suppliers.

Kim Tomar, financial analyst materials of DH has responsibility to gather all related facts, Analysis and come up with report & recommendations.

Since De Havilland is now under new management of Bombardier Inc. Kim Tomar has to keep Bombardier’s following new policies in mind while making any recommendations. (Exhibit 2: DH Organizational Chart),

• 25% discount on purchases across the board • Establishing 5 year fixed cost contract with suppliers • Consolidation of sources / reduction of suppliers

Kim Tomar had received good response from nine potential suppliers on RFQ sent by BSB (Exhibit 3 reflects the bidding structure from each supplier). After normalization, it was evident that Marton Enterprises Inc, offered huge savings and also ready to commit to all policies including fixing the cost for next 5 years.

Tomar further investigated and gathered more documents about Marton and come to conclusion to recommend running a pilot project with Marton Enterprise Inc & Das composites for a year. After the completion of 1st year,on the basis of overall performance, contract to be extended with either of supplier for next 4 years.

Table of Contents
Executive summary 2
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