Integrated DEP/GARD Logistics

Introduction

There are many leakages that may occur if the supply chain is not in proper control. For example, there could be delays in delivery of customer orders or even delays in reception of purchases by a manufacturing firm. Delays in processing customer orders pose a threat to a firm’s reputation with its customers. Customers may drift from a firm which has delays in processing customers’ orders. Also if, the procurement process of a firm experiences delays, this could add costs to the firm. It places the firm at an adverse relationship with its customers because there will always be delays in processing orders. It is, therefore, imperative for firms to streamline its ordering and customer deliveries in line with customer satisfaction and also for efficiency.

Analysis and answers to questions

GARD schedules delivery after ten days of order. This time is significantly much long, and it does not add value to the firms manufacturing operations. Shorter times could considerably improve the reliability of the firm to customers and consequently win more of their loyalty. This represents a five day service window for the firm; however, there are plans to reduce the service window from five to three days. They will add considerable value to the firm’s operations. This means that there will be a shorter time lapse between the reception of an order and its delivery to the customer. Consequently, the reliability of the firm to the customers will improve. For DEP, the order processing period of six to eight days is essentially short and adds value to the firm’s operations. However, the delivery process does not add value because it takes three to six days when the goods leave the manufacturer until shipment to the customer. This time lapse could be made shorter to realize substantial value in the delivery process.

For DEP primary supplier, the minimum performance cycle is two days for compound B, the minimum for compound A is three days. These cycles are the best for both commodities. The maximum cycles are nine and eight days for compound B and Compound B respectively. The maximum cycles are too long and may see the firm lose competitiveness in the marketplace. The longer the time that the firm takes to secure its procurements from the suppliers, the longer it takes to process customers’ orders. The firm should work on a control to reduce the time lag between ordering and supplies. For example, it could introduce information technology, which would make the process faster and more efficient.

There could be an improvement in the performance cycle using the fifteen and twenty five supplies. The maximum times of the company two six and for days for compound A and B respectively. This is better in comparison to company one’s eight and nine days. Therefore, it would be considerably easier to reduce the time lags with company two than with company one. For company three, the maximum performance cycles are four and five days; this is preferable to the company one’s eight and nine days, because the performance cycle can be reduced easily since the time lags are relatively short. Trade offs that must occur to use the second and third suppliers is the substitution to company ones supplies with those of supplier two and three; there could be comprise for this, for example, in terms of quality.

Some of the changes that I would make to DEP’s operations if I were Lippet are to improve the performance cycle in both supplies and deliveries. I would do this through incorporating information technology in the delivery and ordering processes. ICT would reduce lag times in operations, for example, through faster communication. It would also bring more efficiency and accuracy and would considerably reduce the costs of operations. The problem that lies ahead in the implementation of this change is the cost constraint. There would be substantial costs in acquiring the ICT infrastructure and training the firm’s employees to work with the infrastructure.

I would sell to Binish after implementation of the information technology infrastructure through considerable time cuts in the delivery process. The qualifying criteria for the bid would be in terms of the minimum time taken to deliver supplies to the manufacture. After implementation of IT, the time will be relatively short, and this will ensure that DEP wins the bid. Information technology changes over time, therefore, the IT infrastructure should be modified with time to avoid obsolescence. This suggests that supply chain management should be time based.

Conclusion

The supply chain should be streamlined in line with the goal of customer satisfaction. This can only be through reduction of time between ordering and delivery. It is crucial for firms to implement information technology in their supply chain management, as this could add more value to the firms by cutting down costs and improving efficiency. Supply chain management is crucial in improving the reliability of a firm’s operations to its customers; this has an high impact on the firm’s claim in the market share.

Reference

Bowersox, D.J., Closs, D.J., Cooper, M.B. & Bowersox, J.C. (2010). Supply chain logistics management. USA: McGraw Hill

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