Team 2: Lisa Gue, Nitasha Hatcher, Kitty Hollingshead-Mancil, Scott John

 Owner, John Motors  15 years of service  New auto mall  Unique customer service

 Supply methods and suppliers ◦ Parts borrowed from other locations when not in stock ◦ Forecasting method based on history  Foreseen dilemma with auto mall ◦ Buying experience ◦ Supply of parts & materials ◦ Financial concerns

 Structuring the supplier relationship process  Adopting new purchasing policies & procedures  Reducing the investment and space  Maintaining adequate service levels

 Company growth spurned by expansion  Current purchasing plan developed for smaller company with less lines of product  Four different car brands and the need to carry parts for each  Inventory is high and so are costs

 Sharing sales data- creates visibility to your suppliers into your demand  Collaboration working with your suppliers to develop customer demand planning

 Shorten lead time working with your suppliers to reduce the time it takes to receive inventory

 Safety stock levels inventory levels that a company carriers to protect against uncertainty  Just in Time “JIT” or managing inventories so that when product is reduced to zero restocking takes place

 Generic parts: Items that can be used on multiple brands of cars; fan belts, oils, lubricants  Brand specific parts: Items that are designed specifically for one brand of automobile; guaranteed GM parts

 Three benefits to sourcing as one company: ◦ Product costs ◦ Administrative costs ◦ Avoid supply chain disruptions

 Benefits: ◦ Improved forecasting ◦ Reduced complexity in dealing with suppliers

 Compromise Strategy ◦ Centralized buying for generic parts ◦ Localized buying for brand specific parts  Allows the dealership to get the best service for each category of parts

 To reduce investment, computer system will update the department when inventory is low.  Forecasting the budget in the future but still considering historical demand.

 Centralized ordering and inventory department  Computer system to help alleviate space issues

 Reduce Costs  Create Additional Space  Maintain Relationships  Order Adequate Inventory  Streamline the Process

 Krajewski, L., Ritzman, L., & Malhotra, M. (2012). Operations management: Processes and supply chains. (9th). Upper Saddle River, NJ: Pearson Custom Publication  Schiele, H. (2012). Accessing Supplier Innovation By Being Their Preferred Customer. Research Technology Management, 55(1), doi: / X  Baladhandayutham, T. T., & Venkatesh, S. (2012). An Analysis on Application of Lean Supply Chain Concept for Construction Projects. Synergy ( ), 10(1),

Wolf Motors