SiL’K Supplier Selection
Report of Findings and Recommendations
Harley-Davidson Motor Company
Thomas A. Pinkowski
Blue Demons Consulting
January 26, 2004
-Confidential and Proprietary -
Table of Contents
Table of Contents1
Background and Scope2
Conclusion and Recommendations4
Background and Scope
The Harley-Davidson Motor Company is a motorcycle manufacturer that was founded in 1902. Harley-Davidson Motor Company’s average production is over 150,000 motorcycles a year. The majority of the company’s revenue is generated from motorcycles and related products. The Harley-Davidson dealerships consist of over 600 independently owned US dealerships. The company is headquartered in Milwaukee, Wisconsin with manufacturing plants in Wisconsin, Pennsylvania, and Missouri. Also, Harley-Davidson has additional facilities of wholly subsidiaries in Germany, Benelux, France, and Japan.
Harley-Davidson Motor Company employs over 6,000 people. The company values both individual participation and teamwork. The company does not have a traditional hierarchical management structure. Instead, the organizational structure consists of three interlocking circles of: Create Demand (CDC); Produce Product Group (PPG); and Provide Support (PSC). The CDC circle is responsible for sales and marketing. The PPG circle handles development and manufacturing. PSC manages legal, financial, human resources, and communication areas of the company. To ensure that the circles are working together on the corporation direction, Harley-Davidson has in place a Leadership and Strategy council. The council consists of executives from each circle.
Harley-Davidson Motor Company brand name has acquired tremendous and mysterious market strength. Their customers are willing to wait up to years for a motorcycle. The Harley-Davidson Motor Company traditional customer makeup was that of young, reckless, and “born to be wild.” However today, most of their growth consists of customer in their forties with grown children no longer at home and who are looking for an adventure.
This report has been requested by and prepared for Mr. David Cotteleer, Information System Manager of the Supplier Information Link (SiL’K), and Garry Berryman, Vice president, Material Management at Harley-Davidson Motor Company. Mr. Cotteleer and Mr. Berryman have retained Blue Demons Consulting (BDC) to analyze the current selection process for the SiL’K project and provide a recommendation on a supplier. BDC composes this review report by conducting an analysis on the activities surrounding the SiL’K project at Harley-Davidson Motor Company.
BDC found out that in 1996, Mr. Berryman began the development of the Supply Management Strategy (SMS). The goal of SMS was to “ensure that Harley-Davidson is provided with the right product, at the right time, with the best quality, for the lowest possible cost.” SMS’s main theme was to define the difference between a vendor and supplier. Mr. Berryman comments on the differences:
“A vendor is what you’ll find on a street corner. You’re simply going to get the product...