Road Machinery Manufacturing Company Essay

1651 WordsMar 15, 20137 Pages
Supply Chain Case Study Case Study 1 Report Prepared By: Vineeth Jojo, ID-991292949 Submitted To: Scott Hadley Submission Date: 16/01/2013 Road Machinery Manufacturing Company The role of the responder: Ray Wilkins (Materials Manager) Introduction RMM is a privately owned company that manufactures construction equipment, adding the functional body and operational control systems to a customer-provided chassis and front end. RMM has their major share of business in North America and United States and are planning to increase its market share in North America by 25 per cent in the next five years and also to expand to South America and Mexico. A financial crunch led the company to shift the courier services from QPS to…show more content…
Roomis not handling cross border transportation causes the company to hire its own broker. Another problem adopting Roomis is that their ally in US Natex is unreliable as there were often delays and is not very efficient in carrying out the operation. Not being able to supply goods on time affects the goodwill relationship which the company has with its customers which can cause the company its market share. Once the company loses its market share then it will be difficult to regain it back. Also company policy of maintaining low inventory levels to free up capital would require a very efficient supply chain system to maintain the production process flow. So Roomis needs to revamp itself in terms of service levels to meet customer expectation and RMM has to figure out a way to do so. Alternatives Alternative #1 Shift back to QPS This alternative is to suggest shifting the courier service back to QPS. Pros: * Supplier reluctance to shift from QPS is solved. * The cross border transportation efficiency and effectiveness can be increased as QPS is a reliable company. * As the company is planning to expand itself, maintaining a good track record of on time delivery can be helpful. Cons: * Although there were signs of a turnaround, to pay the courier
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