Supply Chain Cases
Subject – Supply Chain Management Semester - III
Case - 1
John Deere and Complex Parts, Inc.
On Friday, November 22, 2000, Blake Roberts, Hayley Marie, Stan Ealdns, and John Pearson, members of one of John Deere's supplier evaluation teams, were discussing the performance of Complex Parts. It had provided questionable service to John Deere's Moline unit over the past year, and they were wondering if this merited giving Complex Parts' business to a different supplier. They needed to recommend a course of action to their project manager next week.
Company Backgrounds
Deere & Company, headquartered in Moline, Illinois, was founded in 1837, and in 2000 conducted business in over 160 countries and employed 43,000 people worldwide. It produced agricultural, construction, commercial, and consumer equipment. Other products and services produced by Deere included equipment financing, power systems, special technologies, and health care. Net sales in 2000 were over $11 billion with total assets of almost $12 billion. Purchases in 2000 were approximately $6 billion.
Complex Parts, Inc., had been a supplier of John Deere for the past ten years with annual sales to its Moline unit of approximately $3.5 million. Complex Parts supplied Deere with a key manufactured part requiring significant engineering input and testing. Two other Deere suppliers were capable of supplying this part; however, Complex Parts was providing all of Deere's needs at the time. The supplier had always taken a proactive approach to its dealings with John Deere, with sales engineers visiting weekly, participating in Deere's cost reduction strategies, staying up with Deere's design changes, and internalizing the Deere Product Quality Plan. Complex Parts was interested in increasing its sales to Deere.
John Deere's Achieving Excellence Program
The Achieving Excellence Program (AEP) was a dynamic supply management strategy aimed at giving Deere and its suppliers the competitive
Case - 1
John Deere and Complex Parts, Inc.
On Friday, November 22, 2000, Blake Roberts, Hayley Marie, Stan Ealdns, and John Pearson, members of one of John Deere's supplier evaluation teams, were discussing the performance of Complex Parts. It had provided questionable service to John Deere's Moline unit over the past year, and they were wondering if this merited giving Complex Parts' business to a different supplier. They needed to recommend a course of action to their project manager next week.
Company Backgrounds
Deere & Company, headquartered in Moline, Illinois, was founded in 1837, and in 2000 conducted business in over 160 countries and employed 43,000 people worldwide. It produced agricultural, construction, commercial, and consumer equipment. Other products and services produced by Deere included equipment financing, power systems, special technologies, and health care. Net sales in 2000 were over $11 billion with total assets of almost $12 billion. Purchases in 2000 were approximately $6 billion.
Complex Parts, Inc., had been a supplier of John Deere for the past ten years with annual sales to its Moline unit of approximately $3.5 million. Complex Parts supplied Deere with a key manufactured part requiring significant engineering input and testing. Two other Deere suppliers were capable of supplying this part; however, Complex Parts was providing all of Deere's needs at the time. The supplier had always taken a proactive approach to its dealings with John Deere, with sales engineers visiting weekly, participating in Deere's cost reduction strategies, staying up with Deere's design changes, and internalizing the Deere Product Quality Plan. Complex Parts was interested in increasing its sales to Deere.
John Deere's Achieving Excellence Program
The Achieving Excellence Program (AEP) was a dynamic supply management strategy aimed at giving Deere and its suppliers the competitive