Workshop
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)
General Description
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.
Roles
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
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)
General Description
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.
Roles
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