...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 1: Integrated Logistics for DEP/GARD MGT 309 March 7, 2015 Dr. Williams Background Gard Automotive Manufacturing’s purchasing agent Mike O’Leary has announced his retirement and his predecessor, Richard Binish, has been announced. One of Gards long term suppliers, Tom Lippet, of DuPont Engineering Polymers (DEP) is coming in to negotiate a new contract. DEP’s polymer is a critical feedstock of the GARD’s manufacturing process. DEP’s supplies have always met Mike’s standards and he’s had few production problems reported from his production managers. Tom’s approach to supplying the business is different than Mike’s. Tom has and MBA with a concentration in purchasing and logistics. Prior to be announced as Mike’s predecessor, Tom worked in inventory management. While in this position Tom used the 80/20 rule to eliminate suppliers and products that were not profitable. Tom’s company is award a one year contract. After the contract signing Mike explains to Tom what Richard is looking for in delivery and options moving forward. Mike reviews with Tom that his company’s product no longer stands out from the pack and that its delivery standards are below Richards expectations. He also explains that Richard’s expectations for delivery will only increase in the coming years. The conversation Mike has had with Tom gives him time to review the competition and his company’s standards. Tom can use this as an opportunity to reevaluate how his company compares to...
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...Case 1: Integrated Logistics for DEP/GARD Analysis Introduction Having attended the Veteran Affairs Acquisition Academy as an intern to become a contract officer for the government, I was immediately intrigued at the way business was being conducted without fair and open competition. As we begin to break down the analysis of Case 1, supply management with be the focal point of discussion. Supply Chain As we take a look at where each company falls in the supply chain we can ascertain that GARD is the customer and DEP the supplier. The following diagram will attempt to break it down further: As we look at the stages in this supply chain, we can see that procurement is the most important. However, in this case the procurement team had it very easy, as Tom Lippet from DEP established a relationship with Mike O’Leary from GARD. In any other business setting, the procurement team is the most important. They are the ones that write the bids proposals for a company. Without them, there would be no work. DEP is highly dependent on its suppliers of raw materials. I find it interesting that they would go with the lowest bidder for their raw materials. If they want to ensure timely delivery, a trade-off analysis of what is important to them for the upcoming year to keep their current contract with GARD. In this supply chain I would put the marketing sales, human resources, and warehouse departments as not have much impact on the deliverance...
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...Case Study 1: Integrated Logistics for DEP/GARD Bobby Norton Saint Leo University Abstract The winds of change brings about new and while fading the old away. This is true with life and it was also true for Tom Lippert, a sale representative for Dupont Engineering Polymers (DEP). DEP is faced with change as their long time GARD contact, Mike O’Leary turns over his responsibilities with his predecessor, Richard Binish. Richard trust the relationship that Mike has developed with DEP over the years however, he plans to verify DEP’s performance to his own standard. Diagram the DEP/GARD supply chain. What stages are adding value? What stages are not? The DEP/GARD supply chain is a follows: * DEP receives ?? of their materials needs to produce polymers. * DEP maintains a 7 day supply of each compound needed to manufacture polymers. * The Manufacturing department is linked to the procurement, marketing, and sales departments. Sales are received via phone or fax then, orders are entered into an information system. Using the system in place, most customer’s orders are produced in 6 to 8 days. * Once production is complete, orders are moved to a nearby warehouse by * At the warehouse the order is verified and prepped for shipping. Typically 3 to 6 day elapse from the time an order leaves manufacturing to the times it leaves the warehouse. * DEP fleet trucks deliver orders twice per week to customers within a 200 mile radius. Deliveries...
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...Case 1: Integrated Logistics for DEP/GARD MGT 309 The Integrated Logistics for DEP/GARD takes us inside of contract renewal negotiations for DuPont Engineering Polymers (DEP) and Gard Automotive Manufacturing (GARD). Tom Lippet is the sales representative for DEP and Mike O’Leary is the purchasing agent for GARD, he is due to retire and replaced by Richard Binish. O’Leary begins to explain to Tom Lippet the contract will only renew for a year and give him insight on the upcoming changes that Binish will began to implement into the company. Binish wants companies to demonstrate “order winning criteria” (Bowersox, Closs, Cooper & Bowersox, 2013). Order-winning criteria are unique selling points or a competitive advantage. It differentiates the products or services from competition. The terms order-winning and order-qualifying were introduced by professor T. Hill from the London Business School to differentiate the criteria that allows a company to compete in the market (order-qualifying) from the criteria that provide a competitive advantage (order-winning), (www.referenceforbusiness.com). In the DEP/GARD Supply Chain, they have several stages that are adding value, such as their ability to maintain a 7-day supply of all their compounds and their continuous advancements in technology, their packaging and product manufacturing. One of the companies down falls has been the inability to move their product at a consistent rate, their delayed paperwork process and inventory...
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...Case 1 Integrated Logistics Overview This case finds Tom Lippert, sales representative for DuPont Engineering Polymers (DEP), in a situation common to today’s competitive sales environment. His company, as a supplier to a major manufacturer (GARD), is faced with changing times. GARD is in the midst of a “changing of the guard” as Mr. Lippert’s long-time contact, Mike O’Leary, retires. O’Leary’s successor, Richard Binish, brings a new set of supplier expectations to the fore of GARD’s purchasing strategy. Over the years, the quality of competitors’ products began to match DEP’s. Firms now compete based on logistics quality. To keep the GARD business, DEP must improve its logistical performance to meet the customer’s rising expectations. The textbook illustrates a concept called the “shrinking service window.” The idea behind the shrinking service window is that customers have begun to expect higher levels of service (higher fill rates) in less time (shorter order cycles). In GARD’s case, a change in leadership is responsible for the new, higher expectations. The change, however, is indicative of the realization that logistics has become a strategic weapon. The case illustrates that DEP must either match competitors’ service or face losing a major customer. Solutions to Questions 1. A diagram of the DEP-GARD supply chain is provided on the next page. Stages that are adding value: • Inbound transportation from the suppliers • DEP packaging • manufacturing ...
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...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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...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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