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Case Study: Durham International Manufacturing Company’s (DIMCO)
Abstract
This report will examine Durham International Manufacturing Company’s (DIMCO) need to implement supply chain management and whether integration efforts should begin with their suppliers, distributors, or both. The author of this report will determine the benefits to DIMCO for leveraging business-to-business e-Commerce strategies; as well as, the steps necessary to improve relationships with current suppliers. Finally, tactics to eliminate waste in the supply chain will be discussed.
Supply chain management “is the vital business function that coordinates and manages all the activities of the supply chain linking suppliers, transporters, internal departments, third-party companies and information systems” (Reid & Saunders, 2010 p.p. 100). The goal of supply chain management is coordinate efforts between all parties to efficiently and effectively deliver the final product to the end-user and “to maximize customer value and achieve a sustainable competitive advantage” (Handfield, 2011). Situational Analysis As outlined in the case study, Lucille Jenkins is the Chief Executive Officer (CEO) of Durham International Manufacturing Company (DIMCO) which fabricates consumer electronic products in the global market. Currently DIMCO purchases raw materials from 375 worldwide suppliers and allocates the final products to 10 regional distribution centers, some domestic to the United States and others internationally. These regional distribution centers then disperses DIMCO’s products to local distributors, each supplying on average 35 retail outlets (Reid & Saunders, 2010 p.p. 146). Jenkins believes that DMICO has implemented the internal processes required to support supply chain management efforts with their suppliers and distributors. Supply Chain Management Integration The structure of supply chain management may vary based on the industry, but in terms of
Abstract
This report will examine Durham International Manufacturing Company’s (DIMCO) need to implement supply chain management and whether integration efforts should begin with their suppliers, distributors, or both. The author of this report will determine the benefits to DIMCO for leveraging business-to-business e-Commerce strategies; as well as, the steps necessary to improve relationships with current suppliers. Finally, tactics to eliminate waste in the supply chain will be discussed.
Supply chain management “is the vital business function that coordinates and manages all the activities of the supply chain linking suppliers, transporters, internal departments, third-party companies and information systems” (Reid & Saunders, 2010 p.p. 100). The goal of supply chain management is coordinate efforts between all parties to efficiently and effectively deliver the final product to the end-user and “to maximize customer value and achieve a sustainable competitive advantage” (Handfield, 2011). Situational Analysis As outlined in the case study, Lucille Jenkins is the Chief Executive Officer (CEO) of Durham International Manufacturing Company (DIMCO) which fabricates consumer electronic products in the global market. Currently DIMCO purchases raw materials from 375 worldwide suppliers and allocates the final products to 10 regional distribution centers, some domestic to the United States and others internationally. These regional distribution centers then disperses DIMCO’s products to local distributors, each supplying on average 35 retail outlets (Reid & Saunders, 2010 p.p. 146). Jenkins believes that DMICO has implemented the internal processes required to support supply chain management efforts with their suppliers and distributors. Supply Chain Management Integration The structure of supply chain management may vary based on the industry, but in terms of
References: Handfield, R. (February 1, 2002). Managing Relationships in the Supply Chain. Retrieved from http://scm.ncsu.edu/scm-articles/article/managing-relationships-in-the-supply-chain on May 4, 2013. Handfield, R. (January 11, 2011). What is Supply Chain Management. Retrieved from http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management on May 3, 2013. Reid, R. D, & Sanders, N. R. (2010). Operations Management: An integrated approach (4th ed.). Hoboken, NJ: John Wiley & Sons. Wailgum, T. (n.d.). Supply Chain Management Definitions and Solutions. Retrieved from http://www.cio.com/article/40940/Supply_Chain_Management_Definition_and_Solutions?page=1&taxonomyId=3207 on May 3, 2013.