John Deere Case Study

1613 Words Jul 15th, 2010 7 Pages


Assignment One

Executive Summary

John Deere is an American based company out of Moline, Illinois currently trying to assess one of it’s supplier company’s performance. The company in question is Complex Parts Inc. who has been a supplier for Deere for the past ten years with annual sales to its Moline unit of approximately $3.5 million.

The issue in question comes after five members of an evaluation team discussed Complex Parts’ performance over the past year. Although Complex Parts has been a long term supplier providing Deere with a key manufactured part requiring significant engineering and input testing, they have been noticed to have fallen behind with customer satisfaction. Deere’s AEP
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Due to the AEP currently in place, it is worth determining if one supplier is best at this time or if Deere is at a point where some change could be beneficial and perhaps strategic sourcing may be the answer.

Quantitative Complex Parts provides Deere with a special part, and has had great sales figures in the past. This company is looking forward to expanding its business with Deere, and must therefore improve the delivery rating to what it has previously been. The issue of not having Deere personnel return their phone calls is also quite pressing, as this is affecting their rating and in turn their business. Yet not being on time with price quotes is an issue they must also look to. Another issue is Complex Parts’ products have not met their required cost targets; in turn they are reducing Deere profit. This problem also relates to their inability to suggest methods for cost reductions.

However, they have been developing their R&D department and because of it Deere has been able to take suggestions and make the necessary changes.

Qualitative Upon review of this information, according to the evaluation team’s members, Complex Parts has been doing a good job in following through with suggestions for quality improvement. They have also taken a proactive business approach and an active role in keeping up with specific changes made be Deere. Complex Parts has also been able to internalize quality plan

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