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
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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
In order for IKEA to achieve design and sustainability objectives, they follow and balance four dimensions of design. The four different dimensions followed are form, function, quality, sustainability, and low price (Rafiq Elmansy, 2014). IKEA has already made changes by using cotton and water from sources that can be renewed. IKEA did this while posting strong sales figures. In 2014, its sales increased 5.9 percent from 2013 to $32.1 billion (Pantsios, 2015).
Before establishing such stable relationships, it is necessary for the Heartland & Company to evaluate potential suppliers comprehensively.
e) Will Breezy be able to gain competitive advantage over local suppliers? Breezy could choose between cost leadership strategy or product differentiation strategy.
4. Identify significant issues pertaining to materials management within the process (i.e. inventory management, supplier selection, etc.)
Answer 2. There should have successful partnership with long term commitment and it encourages in investing improvements in supply chain to mutual advantages. Thus, it will build and improve long term commitment with the form of collaborative framework partnership with the involvement of business to business relationship and it will meet the expectations in terms of goals and objectives.
The stakeholders associated with this project are broken down into four categories, based on three processes of inventory management and a category for stakeholders that do not necessarily fall into any of the categories of inventory management. Raw materials receiving stakeholders include supervisors, receiving area teams, raw materials delivery partners and inventory clerks. Manufacturing with inventory stakeholders include manufacturing staff and inventory clerks. Final product shipping stakeholders include, Riordan Manufacturing’s customers, sales staff, sales order clerks, shipping department and inventory clerks. Additional stakeholders include members of the IT department tasked with maintenance and management of technology proposed in this service review and Hugh McCauley, Chief Operating Officer of Riordan Manufacturing.
AEC need to communicate directly with me versus the Supply Tech. If they are communicating to anyone other than me, this leaves a void in the information that reaches the Administration. Bypassing me retards any follow-on that might be necessary as well. My cell phone number is 080-2705-1171. If there are any facility issues at my assigned schools, information or follow-up activity from Akira, Toby or Matsuda needs to be directed to only me.
Whayne Supply mechanic serviced our back hoe Monday Oct.31. He found that drive shaft u joints are going bad. Also hydraulic line leaking again under floor.
Tasks: What should Alison do? o Develop plans to improve the inventory management o Develop time-based supply strategies to bring competitive advantages to the organization Identify the functions and forms of inventory What are alternatives for inventory management? o ABC classification o Supplier-managed inventories (SMI) o Just-on-time or Just-in-time (JIT) o Enhance the forecasting system (factor correlated with inventory variation) Provide training programs for current and new hiring employees 1
A material manager could focus on discounts on orders and keep up with the production department in order to know what inventory is going to be needed in the future. She can save enough money that they have been wasting to pay the material manager's salary.
In regard to make-or-decisions, the author provides a balanced discussion of the advantages and disadvantages of buying components parts (in the world marketplace) opposed to making them in-house. The chapter concludes with separate discussion of the importance of strategic alliances, just-in-time manufacturing, and information technology to international firms.
Noshirwani: When I look at my integrated supply chain of the future, I’m going to use a phrase: a netted integrated supply chain. What does that mean? As Raytheon IDS works to become a Joint Battlespace Integrator, we will have expertise over multiple domains. The challenge for our supply chain organization, then, is to take the suppliers who are expert in certain domains and knit them together to allow us to create solutions to satisfy our customers’ needs and support our business vision.
A sourcing strategy, when properly defined, assists an organization by outlining its requirements, mapping of the existing supply market, and the development of a plan for short and long-term sourcing objectives (Duffie & Koester, 2005). A well-defined, clearly stated sourcing strategy significantly improves the quality of performance and the speed needed to accomplish a firm’s sourcing objectives. In order for a sourcing strategy to be truly effective, it must take into consideration the core competencies of the company, in order to create a strategy that will protect and build on these
As CEO of our sensor company, it has come to my attention that we are faced with an escalating problem of balancing increasing demand, working capital limitations, and constrained manufacturing output. Many of our top executives have been relaying their reservations about our offshore suppliers, while others have been leaning towards expanding our dependence on them. With this information in mind, as CEO, it would seem the best way to move forward is to expand our offshore supplier, but also reinvest in monitoring and support tenfold as well as develop possible alternative suppliers.
b. Reasons for Alliances- Companies use alliances for a myriad of reasons. Partnering with other companies is a means towards growth, some of the reasons for alliances