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John Deere

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  • November 2012
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John Deere and Complex Parts Inc.
Discussion Questions

1.
Strengths| Weaknesses|
1. Suppliers are evaluated by Deere personnel in many different areas so many opinions are taken into consideration| 1. Weakest category skews the evaluation| 2. Evaluated on 5 separate areas so everything gets covered| 2. Training isn’t provided to conditional suppliers so they wont have the same opportunity as others to progress| 3. Recognition of supplier performance| 3. The delivery and quality ratings are not composite| 4.Suppliers given a Supplier Performance Summary each quarter . Gives them their performance info as well as cutoff information| 4. The ratings are not all quantitative so | 5. Approved suppliers were eligible to participate in Deere training programs| | 6. good suppliers received rewards, training benefits, and honored at Deere awards banquet which is an incentive to suppliers| | 7. The ratings make very specific measurements so its good to have this rather than a brief overview| |

2. I do not think that Complex Parts has performed adequately over the past year. I think that while they are very good in some aspects of the business they are definitely lacking in others. They need to work harder to ensure that the deliveries are made on time. They also need to make more suggestions for cost reductions and eliminating more of the problems. They also aren’t returning phone calls which is concerning. They are also lacking on their duties to implement the Deere Quality Plan at their new facility. Cost and profits are very important and Complex Parts has not been meeting Deere’s cost targets which in turn lowers their projected profits on the products. 3. I would consider trying to work out the problems with Complex Parts. They have been a supplier of John Deere for the past 10 years. One of the aspects of the AEP is to develop long-lasting supplier relationships so I think that’s what they should foucs on and try to fix Complex Parts...

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