Operations Management Case Solutions

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Case chapter 10: Wolf Motors.

1: What recommendations would you make to John Wolf with respect to structuring the supplier relationship process for the Wolf Motors dealership network?

Recommendations for Wolf Motors in order to be able to structure their supplier relationship process are:

❖ They should consider a centralized materials management system to study, calculate and make the decisions on what will be bought for each of the 4 dealerships instead of allowing each dealer to do this on their own.

By buying their parts in a higher volume (one central order for all four dealerships) they can negotiate a better price. This would facilitate greater leveraging with suppliers for consistent quality-control.

❖ An EDI inventory management system that interconnects the main shop with each of the dealerships and has a link with the suppliers should be considered: 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.

2: How might purchasing policies and procedures differ as the dealerships purchase different types of service parts and materials (for example, lubricants versus genuine GM parts)?

Wolf motors has to focus on price, quality and delivery in order to ensure after-sale customer service and customer satisfaction is achieved and maintained. ❖ Wolf motors have to take consideration in reducing the number of suppliers in the purchasing process by choosing a single source distributor for as many supply and product acquisitions as possible. ❖ Wolf has to work with the distributor to identify and select only those brands or products that meet the quality standards which they have set. ❖ Wolf have to...
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