Durham International Manufacturing Company

Topics: Supply chain management, Management, Supply chain Pages: 5 (1453 words) Published: March 29, 2011
Supply Chain Management

Supply Chain Management at Durham International Manufacturing Company (DIMCO) Revenia J. Smith
Strayer University


Abstract (not required)


1. Discuss the Current Supply Chain System at DIMCO
In order to manufacture its product line, DIMCO uses approximately 1,350 raw materials and/or components purchased from approximately 375 different suppliers worldwide. At present, DIMCO ships finished products to a central warehouse that supplies 10 regional distribution centers (RDC) which are composed of six domestic and four foreign RDC’s. The RDC’s supply 120 local distributors. The local distributors supply 350 retailers.

DIMCO does not use supply chain management program for manufacturing its worldwide product line of various consumer electronic items ranging from humidifiers to massagers. The CEO, Lucille Jenkins believes that implementing supply chain management would be profitable, and that DIMCO, having integrated its internal processes, is ready to integrate the suppliers or the distributions. Therein, lays the question of which to integrate first-the suppliers or the distributors. There exists a need and desire for including DIMCO’s suppliers and distributors into the supply chain system by implementing an efficient supply management system that will not alienate those suppliers and distributors. Lucille Jenkins knows she must make an informed, unbiased decision as to the sequence of events involved in implementing the supply chain management.


2. Discuss the Advantages that DIMCO can gain by implementing supply chain management Through proper implementation of supply chain management (SMC), DIMCO will strengthen its partnership with suppliers and distributors because of the trust and teamwork SMC will build through inclusion in the process of management. Establishing a common network for communications, feedback, and beneficial suggestions that resolve challenges and problems swiftly and effectively will increase productivity and decrease costly distractions and disruptions. External changes and situations that are not predictable by DIMCO can be very devastating if an efficient, real-time response system is not in place to minimize disruptions. Supply continuity, customer service and production shortfalls may result if the supply chain visibility does not improve. The proper implementation of SMC will solve numerous unpredictable events and strengthen the partnerships across the board by keeping the pulse of the marketplace. Implementing an effective and efficient SMC will allow the partners to share information concerning health, safety, government regulations and environmental issues. This will allow the partners to make necessary adjustments and/or comply in a timely and thorough manner, thus avoiding costly, time-consuming distractions. By utilizing the SMC, the partners build a common thread of interdependence, openness and flexibility in solving a myriad of challenges and concerns while improving production, quality, transportation, distribution and customer service. In addition, a more efficient distribution system will decrease transportation costs, increase supply chain velocity and customer satisfactions because needed goods are in stock.


3. Recommend a strategy for DIMCO related to external suppliers DIMCO’s 375 external supplier provide approximately 1,350 various components and/or raw materials in manufacturing its products. By decreasing the number of suppliers and having a much smaller number of suppliers delivering a larger portion of the components and raw materials, DIMCO will realize much lower shipping costs by receiving fewer and larger shipments for incorporation into its manufacturing process. This strategy will...

References: Reid, R. D., & Sanders, N. R. (2010). Operations Management: An Integrated Approach.
Hoboken, NJ: John Wiley & Sons, Inc.
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