Case 1: Integrated Logistics for Dep/Gard Analysis
957 Words4 Pages
Case 1: Integrated Logistics for DEP/GARD Analysis
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.
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.…show more content… The information supplied in the case is that DEP takes 6 to 8 days to process orders in their received through various departments to include the marketing/sales and procurement. Once production has occurred, the warehouse takes over where the product is prepared for shipment, adding another 3 to 6 days. Finally the product is ship where locally no number of days is provided for delivery within a 200 mile radius. Anything outside will take no longer than 6 days to arrive. Anything within this 200 mile radius is delivered by DEP’s transportation fleet and anything outside is serviced through common carriers. In this case, the minimum performance cycle for DEP would be 10 days with a maximum performance of 20 days.
In order for trade-offs to be considered for improvement in the production cycle, more information is needed. For example, what is the location of each of these companies, how fast can they ship the materials, and how responsive are they with DEP – where do they fall in line as far as priority goes? This is where the procurement team from day one has to ensure that these questions are asked during discussions/negotiations of the contract. The use of the fifteen and 25 percent business should be implemented if they can readily have a raw material delivered before the company holding the most business of sixty percent.
Depending on the amount of business provided from GARD it may be necessary for