Operation Management

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Wolf Motors Case Study
1. What recommendations would you make to John Wolf with respect to structuring the supplier relationship process for the Wolf Motors dealership network? The recommendations I would suggest for structuring the supplier relationship process for the Wolf Motors dealership network are Wolf Motors should consider a centralized corporate level Materials Management System to consolidate buying decisions for each of the 4 dealerships. This would facilitate greater leveraging with suppliers for consistent quality-control. They should study, calculate and make effective decisions on the materials that should be brought for each of the four dealerships instead of allowing each dealer to do it on their own. An automated EDI (Electronic Data Interchange) inventory management system that interconnects with each of the dealerships and interfaces with the suppliers should be considered. The system would alert purchasing agents and suppliers when critical inventory levels are reached. The system would let them know on time if they are running out of any parts in any dealership and maybe if they have that specific part in any other dealership. Parts could be provided between dealerships in emergency situations (inventory pooling). The link for the supplier would allow the supplier to prepare himself even before receiving the order. The dealerships could also swap the parts among them in the case of emergency situation. There could also be a vendor managed inventory system which would allow suppliers to continuously stock the parts as needed to help in avoiding the shortages.

2. How might purchasing policies and procedures differ as the dealership purchase different types of service parts and materials (for example, lubricants versus genuine GM parts)? Wolf Motors should concern with the price, delivery and quality in the after sale customer service and satisfaction which should be achieved and maintained for an effective operation. Wolf motors...
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