Wisner Case Study
Part 2
Supply Issues
Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8 Case 9 Case 10 CJ Industries and Heavey Pumps Credit Suisse: Sourcing IT Services Don’t Shoot the Messenger Early Supplier Integration in the Design of the Skid-Steer Loader John Deere and Complex Parts, Inc. Service Purchasing at the Sunny Hotel Supplier Development at Deere & Company A Supplier Partnering Agreement at the University of Las Vegas The VW Resende Modular Consortium Heartland & Company
1
1
CJ Industries and Heavey Pumps 1
In October 2007, CJ Industries (CJI) had just been awarded a 5-year contract with Great Lakes Pleasure Boats amounting to U.S. $10 million per year, commencing in July 2008. CJI would be providing a number of key engine components for Great Lakes’ luxury line of pleasure boats. The award marked an important milestone for CJI, in that it was the culmination of several years of hard work and dedicated service, supplying Great Lakes parts for their boats on an as-needed basis. The contract had significant longterm follow-on potential as well, if they could continue to show Great Lakes they had the capabilities to be one of their valued, alliance partners. In addition, with this contract Great Lakes would represent approximately 30 percent of CJI’s annual sales, so performing adequately on this contract had a significant long-term financial impact on CJI. One of the parts, a bilge pump, was an item that CJI had been purchasing from one of their suppliers, Heavey Pumps, a small local specialty pump manufacturer, on an informal, non-contract basis. The remaining items were all built in-house by CJI and supplied to Great Lakes from one of their two finished goods warehouses located near the Great Lakes production facilities. Heavey Pumps was producing and delivering 50 bilge pumps at a time at a cost of U.S. $1500 per unit and built to Great Lakes’ specifications, to one of the CJI warehouses, whenever an order was telephoned in by CJI. The
Supply Issues
Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8 Case 9 Case 10 CJ Industries and Heavey Pumps Credit Suisse: Sourcing IT Services Don’t Shoot the Messenger Early Supplier Integration in the Design of the Skid-Steer Loader John Deere and Complex Parts, Inc. Service Purchasing at the Sunny Hotel Supplier Development at Deere & Company A Supplier Partnering Agreement at the University of Las Vegas The VW Resende Modular Consortium Heartland & Company
1
1
CJ Industries and Heavey Pumps 1
In October 2007, CJ Industries (CJI) had just been awarded a 5-year contract with Great Lakes Pleasure Boats amounting to U.S. $10 million per year, commencing in July 2008. CJI would be providing a number of key engine components for Great Lakes’ luxury line of pleasure boats. The award marked an important milestone for CJI, in that it was the culmination of several years of hard work and dedicated service, supplying Great Lakes parts for their boats on an as-needed basis. The contract had significant longterm follow-on potential as well, if they could continue to show Great Lakes they had the capabilities to be one of their valued, alliance partners. In addition, with this contract Great Lakes would represent approximately 30 percent of CJI’s annual sales, so performing adequately on this contract had a significant long-term financial impact on CJI. One of the parts, a bilge pump, was an item that CJI had been purchasing from one of their suppliers, Heavey Pumps, a small local specialty pump manufacturer, on an informal, non-contract basis. The remaining items were all built in-house by CJI and supplied to Great Lakes from one of their two finished goods warehouses located near the Great Lakes production facilities. Heavey Pumps was producing and delivering 50 bilge pumps at a time at a cost of U.S. $1500 per unit and built to Great Lakes’ specifications, to one of the CJI warehouses, whenever an order was telephoned in by CJI. The