...1. Discuss the current supply chain system at DIMCO. Currently DIMCO has a very extensive and even a bit of a clustered supply chain. A supply chain is a network of all the activities involved in delivering a finished product or service to the customer. “It is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer”. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. For DIMCO, their supply chain consists of approximately 1,350 different components and/or raw materials to manufacture its product line, about 375 different suppliers that provide the raw materials, a central warehouse that supplies 10 regional distribution centers, and about 12 local distributors that each supply an average of 35 retailers that get the final product to the consumers. DIMCO manufactures a variety of consumer electronic products, from hair dryers to humidifiers to massagers for the world market. It seems like every step of the supply chain is not really defined. They have too many parties involved in every step and they need to link all of their steps to make it a more smooth supply chain. Supply chain management is the best solution to their problems. 2. Discuss the advantages that DIMCO can gain by implementing supply chain management. DIMCO 3 Supply chain management refers to the management...
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...Supply Chain Management Running head: SUPPLY CHAIN MANAGEMENT AT DIMCO Supply Chain Management at Durham International Manufacturing Company (DIMCO) Revenia J. Smith Strayer University SUPPLY CHAIN MANAGEMENT AT DIMCO Abstract (not required) SUPPLY CHAIN MANAGEMENT AT DIMCO 1. Discuss the Current Supply Chain System at DIMCO In order to manufacture its product line, DIMCO uses approximately 1,350 raw materials and/or components purchased from approximately 375 different suppliers worldwide. At present, DIMCO ships finished products to a central warehouse that supplies 10 regional distribution centers (RDC) which are composed of six domestic and four foreign RDC’s. The RDC’s supply 120 local distributors. The local distributors supply 350 retailers. DIMCO does not use supply chain management program for manufacturing its worldwide product line of various consumer electronic items ranging from humidifiers to massagers. The CEO, Lucille Jenkins believes that implementing supply chain management would be profitable, and that DIMCO, having integrated its internal processes, is ready to integrate the suppliers or the distributions. Therein, lays the question of which to integrate first-the suppliers or the distributors. There exists a need and desire for including DIMCO’s suppliers and distributors into the supply chain system by implementing an efficient supply management system that will not alienate those suppliers and distributors. Lucille...
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...1. Discuss the current supply chain system at DIMCO. Durham International Manufacturing Company manufactures a variety of consumer electronic products, from hair dryers to humidifiers to massagers. Currently DIMCO uses approximately 1350 different components and/or raw materials in manufacturing its products line. Those components and raw materials are purchased from approximately 375 different suppliers, which we can call them external suppliers, the first component of a company’s supply chain structure. Then, after the company’s internal functions, DIMCO sends its finished products to a central warehouse that supplies 10 regional distribution centers, which 6 are domestic and 4 are located outside of the US. Each one of these distribution centers supplies an average of 12 local distributors that each supplies an average of 35 retailers. DIMCO supply chain can be summarized by the figure below: 2. Discuss the advantages that DIMCO can gain by implementing supply chain management. Supply Chain Management is the vital business function that coordinates and manages all the activities of the supply chain linking suppliers, transporters, internal departments, third-party companies, and information systems. The advantages DIMCO can gain with supply chain management are coordinating the movement of goods through the supply chain from suppliers to manufacturers to distributors to the final customers; and sharing relevant and accurate information such as sales forecasts...
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...Current supply chain system at DIMCO. DIMCO currently is undecided about their Supply Chain Management System, they have integrated their internal process, and willing to expand at external level, but there is no clear direction for implementing the process. DIMCO can’t properly distinguish the importance of suppliers and distributors, and who should be integrated first. DIMCO currently uses large number of suppliers around the globe to buy raw material for their manufacturing unit. Let’s glance at what the Supply Chain Management System is; Supply chain system is a network of distributors, suppliers, retailers, and manufacturers. This is the process through which goods are manufactured and provided to end customers. As, we pass through technological innovation, we will see constant changes in this whole system, several effective tools have been introduced to make this process as effective as possible. There are several levels of this system, but the main purpose and vital part of system is to meet the demand and overcome the obstacle through industry coordination. Companies plan accordingly through this system, so that problem with one segment does not affect the whole system. For example, if raw material is not provided by supplier on time, then proper steps must be taken so that it does not affect production and other units adversely. There has to be plan A and plan B. Technology has merged at different operational levels in order to make those plans effective. Effective...
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...Sergil Houston Business Management 515 Week 3 Assignment 1 Professor Wade Ferguson July 17, 2011 Discuss the current supply chain system at DIMCO. Dimco uses an strategic, operational and tactical supply chain in which they have daily production and distribution planning, including all nodes in the supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute). Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. They have sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Inbound operations, including transportation from suppliers and receiving inventory. Production operations, including the consumption of materials and flow of finished goods. Strategic network optimization, including the number, location, and size of warehousing, distribution centers, and facilities. Strategic partnerships with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. Product life cycle management, so that new and existing products can be optimally integrated into the supply chain and capacity management activities. Their tactical systems includes sourcing contracts and other purchasing decisions. Production decisions, including contracting, scheduling, and planning...
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...Analysis of the Business Cycle – The Beauty Salons By Jacqueline R. Jones Presented To Dr. Saad M. Khalil December 5, 2010 ECO550009016: Managerial Economics and Globalization Strayer University Abstract The scope of this paper is to investigate, prove or disprove the implications that due to our current economic status for the past twelve months our GDP (Gross Domestic Product) growth, inflation, unemployment, corporate profits and other data has played a relevant part on where our economy currently is in the business cycle today. It implies that these factors may play a significant part on our prospective for higher sales, labor cost and growth from a monopolistically competitive firm or industry. Various official U.S. sources on statistics have been complied and examined as well as information from numerous websites and articles and have been studied to see if these analysis are founded for today’s economy. Studies from the Labor Statics, the Bureau of Economic Analysis and the Federal Reserve Board have conducted, similar aspects on the business cycle pertaining to GDP growth, inflation, unemployment and corporate profits about the business cycle. We will also look at the of a monopolistically competitive firm (beauty salons) to see if they will experience growth when unemployment is low or what will happen when higher employment effect a downturn in the business cycle. According to the Burea of Economic Analysis the GDP (Gross Domestic Product)...
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...describe DIMCO’s supply chain. DIMCO manufactures have many different types of consumer electronic products for world-wide distribution. Currently, the company uses approximately 1,350 different types of materials and raw materials in manufacturing its product line. Those materials come from 375 suppliers around world. And DIMCO sends its finished goods to a central warehouse. From the Central warehouse, the finished goods go to regional distribution centers: 6 domestic and 4 international. The 4 are located outside of the United States. Each one of those distribution centers supplies about 12 local distributors who get the product out to approximately 35 retailers each 2. What are the advantages that DIMCO can gain by implementing supply chain management? The implementing supply chain management coordinates the movement of goods and services throughout the entire process from the suppliers of raw materials to the end customers. Also, the management helps DIMCO to reduce costs, and the operational expenses will be better managed. Further, it increases market share, and to through insights into the internal, external and customer dimension of the business. 3. What would you recommend DIMCO attempt next? Should it work on integrating the suppliers or the distributors first? Or should it work on both simultaneously? I recommend that DIMCO attempt to work on integrating the suppliers, because DIMCO has 375 suppliers around world. In other words, DIMCO should strive to own or control...
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... Briefly describe DIMCOs supply chain? Answer 1. DIMCO has a traditional or basic supply chemical grasp with all activities directed at delivering a finished output to clients. DIMCO uses 1350 components which are sourced from 375 suppliers. The finished goods go to a central warehouse; From the Central warehouse the finished goods go to regional statistical dispersion centers: 6 domestic and 4 international (outside the United States). In that respect are 10 in total. Each of these regional distribution centers then forward product to an average of twelve (12) local anesthetic distributors : (10x12 = 120 local distributors). Each local distributor in advance finished goods to an average of thirty five (35) retailers: (120 x 35= 4200). Question 2. What are the advantages that DIMCO can gain by implementing supply chain management? Answer 2. Operational Efficiency: better understanding and control all over internal operations; Adaptability: ability to respond faster to flock; and Monitoring and Tracking: insights into customer needs and purchasing trends as well as demand levels that affect your supply chain; Reduced Costs Operational expenses will be ameliorate managed; Increased Profitability Improved Customer Service Better positioning as it relates to the competition. Increased market share through insights into the internal, external and customer dimension of the business. Question 3. What would you recommend DIMCO attempt next? Should...
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...Assignment #2 Chain Management at Durham International Company (DIMCO) Latrail Hayes BUS515 – Operations Management Dr. Travis O Davidson 25 July 2012 Strayer University Summer 2012 Determine whether integration efforts should start with suppliers, distributors or both. Explain the rationale for your decision. By definition, a supply chain “is the network of activities that deliver a finished product or service to the customer” (Reid and Sanders, 2010, p. 99). Aspects of the supply chain include raw materials or parts, manufacturing, storage, tracking, distribution and, ultimately, delivery of the product or service to the customer. The effectiveness and efficiency of the supply chain is dependent upon how well the companies involved integrate, or in other words, how well they work together to make, produce, distribute and deliver a product or service to a satisfied customer. The relationships of the stakeholders within the supply chain, is contingent upon how well they collaborate to prevent and solve bottlenecks or bumps in the demand and supply. To this end, integration efforts should begin with both the suppliers and the distributors. Integration efforts regarding both the suppliers and the distributors allow for greater control and flow of information and communication across the board by the respective companies. In, Operations Management, 4th edition, the text allows for three types of integration that a company may employ: vertical, backward...
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...Running Head: SUPPLY CHAN MANAGEMENT AT DIMCO Supply Chain Management at DIMCO Kendra Brown Daniel Gilbert BUS 515 – Operations Management July 17, 2011 Answer 1 Durham International Manufacturing Company currently has integrated the internal process and would like to move towards the external integration. Lucille Jenkins, CEO for the company is not sure which avenue to take to insert the supplier function of the chain management system. The CEO has many options to consider, however must look at what would be the best fit for the company. DIMCO supply chain structure has three components, external suppliers, internal and external distributors. DIMCO currently uses 375 suppliers worldwide, sends it’s finished products to a centralized warehouse that supplies 10 distribution centers; six are domestic and four internationally. Each out the regional distribution centers supplies an average of twelve local distributors and them each supply 35 retailers. Answer 2 Implementing supply chain management, DIMCO would be able to optimize their supply change. Larger companies has made their supply chain an important and critical factor of their decisions making, by constantly...
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...market. Generally, there are two categories of indirect paths to be hypothesized to show the intervention with the suppliers. First and foremost the higher the view in the plan of selecting suppliers the higher the likelihood of increased integration. (Koufteros, Vickery, & Droge, April 2012, pg. 99).again, the need for intervention would demand that the degree of integration of suppliers the better the increased competitive abilities of the buyers. The controversy on the suppliers combination and buyers performance abilities are connected on the basis that the durability and the achievement of the suppliers depend on the relationships that the purchasing firm has developed, or is developing. Question two Recommend ways that DIMCO could benefit from leveraging B2B e-Commerce Conduction of business online from one business to another also called e commerce is the buying and selling of goods from one business to another. If a single business unit says licile Jenkins intends to increase the amount of operational revenue, beB2B is surely the certain to generate the amount of revenue. Generally there are many advantages and even benefits that...
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