Running Head: SUPPLY CHAN MANAGEMENT AT DIMCO
Supply Chain Management at DIMCO
BUS 515 – Operations Management
July 17, 2011
Answer 1 Durham International Manufacturing Company currently has integrated the internal process and would like to move towards the external integration. Lucille Jenkins, CEO for the company is not sure which avenue to take to insert the supplier function of the chain management system. The CEO has many options to consider, however must look at what would be the best fit for the company. DIMCO supply chain ...view middle of the document...
Supply change management is a way for organizations to meet the need of the consumers quickly and in an efficient manner. In order to implement a successful system, it is important to have solid partners in the supply chain. The more suppliers that are in the process to manufacture a product the more involved the supply management cycle will become. The decision to implement supply change management will require dedication from DIMCO. Generally the decision to move forward with the process is brought on by the pressures of the competition and the current economic conditions. Many organizations look for ways to streamline their process and look for ways to save money while providing high quality products. Due the advancing of technology automating as much of the process will increase production and decreases the room for mistakes as well as defective products. Answer 3 Constant communication with external suppliers to make sure that they are aligned with business strategic plan and ultimate goal of getting the materials needed for production. To remain competitive in the market place, it is imperative that all units involved in the process are in sync. The supply chain strategy should always be the anchor of the business strategy. With out a good process in place, will ultimately affect the bottom line. Suppliers are important for the outcome of the product, since the materials supplied from suppliers are the start of the production process. I recommend that DIMCO look to go with multiple suppliers since they manufacture several types of consumer electrical products. This would be advantageous for the company. By using more than supplier there are several advantages afforded to the company. Driving a competition among suppliers may provide higher quality of service and lover process. The eliminates dependency of the supplier on the purchaser, the chance of not being able to get materials is almost non-existent; gives DIMCO the opportunity to try new products with out interrupting the current process and allows for flexibility to try new suppliers. (Reid & Sanders, 2010) A lot of effort should be put into creating the external supplier chain. 50 percent to 60 percent of the cost of the product is for materials. Supply chains are multiple suppliers and customers linked in which each customer is a supplier to another part of the chain until the final product is delivered. The elimination of wasteful processes in the supply chain will help DIMCO to increase profitability. There are seven areas to look at regarding waste. The first source is over...