Deere John Supplier Development

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Supplier Development at Deere & Company By Gil Lopez An assignment submitted in partial fulfillment of the requirement for MGT 608 School of Business and Management National University Dr. Farnaz Sharifrazi December 1, 2013 Background Deere & Company, also known as John Deere, is a leading provider of agricultural equipment with offices, manufacturing facilities, and suppliers in over 160 countries (Company Background, 2001). In order to stay competitive and remain a leader in its industry, Deere & Company has entered into partnerships with its suppliers in an effort to reduce the suppliers’ manufacturing cycle time and help cut manufacturing costs, which would in turn benefit Deere as well. Through supplier…show more content…
As trust between Excelsior and Deere breaks down, the partnership will start to break away and will ultimately dissolve, causing one party to lose a supplier and the other one a buyer. If Excelsior does accept Deere’s demands, they will lose 95 percent of their revenues, which will put them out of business. If Excelsior goes out of business, Deere’s business will be negatively affected as they will be required to search and develop a new supplier, which can take a lot of manpower and time. If both parties do not work together in finding a suitable solution that will work for both of them, both Excelsior and Deere will end up losing big in the long run. If it is not an appropriate tactic, what are some alternatives? There are countless of alternatives that both Excelsior and Deere can work through. One appropriate tactic would be for Deere to work with Excelsior in order to find possible solutions that would result in a win-win situation for both parties. By working together and collaborating with Excelsior it will be more of a strategic significance for Deere rather than simply a tactical gain (Storey, Emberson, Godsell & Harrison, 2006). Another solution would be for Deere to let Excelsior come up with possible solutions that would help reduce its manufacturing cycle time and cut its manufacturing costs. In short, the overall

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