Durham International Manufacturing Company

It is becoming apparent that the ever changing environment in the global marketplace requires a swifter response time from businesses and their supply chains. The era when production was moved overseas, so businesses can take advantage of low-cost labor is coming to an end, because businesses are not only competing on price but also on time. The owner of Zara, a Spanish clothing store knows this first hand, and has turned supply chain management on its ear, making his company the “envy of the industry” (Ferdows, Lewis, & Machuca, 2004).

- well-organized of the distribution of the manufacturer will lessen the shopping delays of raw materials

Suppliers want to have good satisfaction and feedback from their products, whilst managers will want to expand and create more stores, so they can increase their organisations income and budget.

Second, costs could be reduced by consolidating deliveries so as to eliminate the additional cost of transporting less-than-full truck loads. Additionally, packaging could be standardized so as to reduce changeover times on the production floor. Should none of these options (or any appropriate combination of them) be acceptable, Kemps may need to consider discontinuing the relationship with the customer.

Therefore the purchasing department will be able to reduce the cost to more efficient and effective process and it will be able to deliver better process.

Apply time, money, people and other resource involve in early supply and supplier to assure continuous availability at the lowest cost in strategy spend.

One of the main concerns during the meeting was the impact of cost and time constraints on networking techniques and project schedules. Under the ideal situation, the project start and end dates are fixed. Adding resources is not usually feasible as it increases cost. There should be a balance between time and cost constraints as it avoids wasting of resources. Also most people are willing to accept that costs could exceed expectations, and might even take a perverse delight in recounting past examples, the same is not true for time constraints. This is probably due to the fact that cost over runs are resolved in-house, while schedule issues are open and visible to the customer. A company has a lot of useful, desirable work that could be done, but has limited and finite resources available with which to do that work. Choices have to be made about which work to do and how to allocate resources. This leads to constraints especially, the time constraint and the cost constraint. Time, in project management, is analyzed down to its smallest detail. Each and every component of the project is analyzed with respect to the time required for completion. After completion of this analysis these components are broken down even further into the time required to do each task.

Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also

Operating such dynamic distribution centers is usually very expensive and allows possibilities of product wastage. The high capital requirement to run such large distribution centers produces a natural barrier to entry and smaller firms frizzle out if they try and compete with the larger firms.

Proximity to raw materials gives benefits on distribution channel which is already organized by formers. This also gives an added advantage in reducing transportation costs

Darden takes its suppliers very seriously, prior to doing business, the supplier must be qualified and a Total Quality Management Team assigned to that vendor. Product tracking occurs with inspection teams that identify the lot ID, atmospheric packaging, and the ability to track the order from origin to receipt of goods. For their many restaurants, Darden structures its supplies from 5 continents and thousands of suppliers, but insists on independent and accurate assessments in order to maintain relationships. Everything must be JIT inventory except smallware.

The manufacturing cost can be lower as the rearrangement of the production line to meet urgent order can be minimize or even eliminated.

Just-in-time delivery needs good collaboration with vendors of distribution services and of products. The distributor needs a continuity of demand and the chance to define routes, loads and schedules well ahead. By working toward longer-terms, higher-volume procurements with vendors, prices can be cut due to larger transport volume over a long period of time. Just-in-time delivery will cut down the operating costs if the business is substantial for the distribution partner. Just in time delivery needs more frequent deliveries from vendors however it does not voluntarily imply higher transportation costs.

Gainesboro Corporation was founded in 1923 by two mechanical engineers, James Gaines and David Scarboro. It was the industry leader in press and mould manufacturing. Its revenues declined from $911 million in 1998 to $757 million in 2004. To combat the decline in revenues and weakening profit margin it followed a two prong approach. First it devoted a greater share of its research and development budget to CAD/CAM to establish its industry leadership. Second the company underwent two major restructuring. The company had set the objective of achieving 15% CAGR growth.

DIMCO may gain many advantages by implementing supply management chain. Implementing SCM can reduce problems within the company’s internal functions, external suppliers, and external distributors. Some advantages DIMCO can gain from implementing SCM are as follows; the supply chain would improve the quality of service to the end user; reduce channel cost; and create a competitive advantage. (Reid & Sanders, 2010) The implementations of SCM will strengthen DIMCO partnership with suppliers and distributors. Supply chain management can also prevent such challenges such as the bullwhip effect, caused by erratic replenishment of orders placed on different levels in the supply chain that have no apparent link to final product demand. (Reid & Sanders, 2010) An effective and efficient SCM will allow partners to share information concerning health, safety, government regulations and environmental issues. SCM will provide a common network for communications, suggestions, and feedback. This will assist DIMCO in meeting the need of customers quickly and in an efficient manner. Overall, SCM would assist in