Session 7 : Microworld emulation workshop
Topic : Integrated Logistics
Case reference : Textbook P.431 “Integrated Logistics for DEP/GARD” Group size : 4 (Altogether 10 groups for a class of about 40 students)
This case finds Tom Lippert, senior representative for DuPont Engineering Polymers (DEP), is now in a situation common to today’s competitive business environment. His company, as a supplier to a major manufacturer (GARD), is faced with changing times. GARD is in the midst of a “changing of the guard” as Mr. Lippert’s long-time contact, Mike O’Leary, retires. O’Leary’s successor, Richard Binish, brings a new set of supplier expectations (what are these ?) to the fore of GARD’s purchasing strategy. Over the years, the quality of competitors’ products began to match DEP’s. Firms now compete based on logistics quality. To keep the GARD business, DEP must improve its logistical performance to meet the customer’s rising expectations. The case illustrates a concept called the “shrinking service window.” The idea behind the shrinking service window is that customers have begun to expect higher levels of service (higher fill rates) in less time (shorter order cycles or lead time). In GARD’s case, a change in leadership is responsible for the new, higher expectations. The change, however, is indicative of the realization that logistics has become a strategic weapon. The case illustrates that DEP must either match competitors’ service or face losing a major customer.
Procurement Manager (PM)
As a procurement manager, how can you ensure the improvement of service levels by your company’s suppliers ? Should you use more reliable suppliers and how ? What are the pros and cons ? Inventory cost higher or material cost will be affected ? Now Binish wants “shrinking service windows ”. How can you help in achieving this through a better procurement strategy ? SC Manager (SCM)
Draw a complete and detailed supply chain diagram from suppliers of DEP to delivery of material to GARD. Try to identify from the diagram the practical way to improve your logistical performance and shorten the delivery time to meet GARD’s requirements. Discuss with other managers if they can support your suggestion.
Manufacturing Manager (MM)
As a manufacturing manager, you receive materials from outside suppliers and manufacturing starts under your supervision. You then deliver the finished items to warehouse before sending to GARD. Can you suggest some process re-engineering or any improvement that you can suggest to help meet the demand of Binish ?
Sales/ Marketing Executive (SME) – representative of the group
As the main contact with Binish, how can you propose to your CEO that DEP needs major business operations improvement to meet the request of GARD otherwise DEP will lose this major customer that they cannot afford to see this happen. You need to gather information from your managers and provide several key points and write on a short proposal to present to the class. You need to identify the “quality criteria” and “order winning criteria” of DEP to convince that GARD should continue the partnership with DEP.
Time Frame of Workshop
6.00 – 6.30
Deep reading of the case
Group discussion to clear some points described in the case
6.30 – 7.00
Each role considers the issues that they need to address and make recommendation SME is to collect information and provide advice if needed
Thorough discussion of final report
SME leads the team to finalize the recommendations report for later presentation 7.30 – 7.45
7.45 – 9.00
Presentation from the 10 groups
Other groups critique the presentation with marks (from 1 to 9 marks) 9.00 – 9.15
The champion group will get 10% more mark in their case report assignment individually 9.15 – 9.45
General review of overall performance
Grades for Groups...
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