1. Discuss the strengths and weaknesses of John Deere’s Achieving Excellence Program. Consider and discuss other criteria to include in the analysis.
John Deere’s Achieving Excellence Program (AEP) is an innovative system that will help the company maintain relations with their most preferred suppliers. The system has many strengths and weaknesses that help it strive within a powerful company such as John Deere.
The AEP has many criteria for which each company is graded on both measurable and also judgmental. Using a multitude of guidelines, will give John Deere the most accurate measurement for each supplier. The AEP also maintains its consistency from supplier to supplier, which will give John Deere the ability to compare each supplier whether they provide a couple hundred items or a couple million items. If John Deere were to rate each supplier on a scale of one to five overall it would not equally take into account all the different aspects of each individual company and the possible strives the supplier might be trying improve on in order to become a positive supplier for John Deere. The AEP is a progressive program that not only grades it suppliers but also will reward the top performing suppliers by providing incentives to them which will lead to a positive relationship with John Deere. Each part of the AEP is graded by a different manager, thus creating a more equal grading scale and a system of checks and balances. By forcing the suppliers to focus on John Deere’s AEP, it will indirectly cause them to implement changes company wide which will benefit other companies with whom the supplier deals with.
Even though the AEP is full of strengths that make it innovative within the industry there are still a couple weaknesses. The focus is on scoring a high rating on the AEP scale and not necessarily doing what is best for the supplier and purchaser. For example, if John Deere places an order with a supplier...