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Supply Mgmt Case Studies

Satisfactory Essays

Case Study #1 - Sunspot, Inc

1. What are the most likely benefits of forming strategic supply alliances with Sunspot’s key suppliers?
A strategic alliance between Sunspot and its key suppliers will result in a relationship based on trust. It’s key for both parties to develop and manage this “institutional” trust or the alliance will fail. Trust will facilitate communication which will lead to less errors and higher quality, faster development times, and lower costs. Synergies created by alliances result in reductions of direct and indirect costs associated with labor, machinery, materials, and overhead. Other benefits are reduced time to market, improved technology flow from suppliers, and improved continuity of supply. With …show more content…

This gave rise to the materials management approach to structuring the material portion of an organization.

Instructor Comments:

3. What should Joan Glass do?
Joan must start with the basics of setting up the materials management organization to provide an integrated systems approach to the coordination of materials activities and the control of total material costs. She also needs to evolve the supply chain management structure to encompass the planning and management of all activities involved in forecasting, sourcing, and procurement and all incoming logistics management activities. It will create integrated processes throughout the organization. Setting up a cross functional team will address many supply management related activities. In addition, policy will need to be established to ensure all parties know their respective roles and expected involvement.

Instructor Comments:

4. Should Glass suggest a materials manager?
Absolutely, she should suggest a materials manager to have control and responsibility for the purchasing, planning and scheduling, transportation, and warehousing functions. This will optimize the performance of the materials system resulting in improvements in inventory

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