Supplier Integration: Skid-Steer Loader
Early Supplier Integration – Skid-Steer Loader
How would Deere intend to use the Early Supplier Integration (ESI) concept in the Skid-Steer Loader product development?
Deere is attempting to shift the production of their Skid-Steer Loader from a 3rd party manufacturer to a new in-house facility to gain more control over production, capacity and inventory. Currently, the manufacturer they utilize also produces a line of skid-steer loaders and are direct competitors with Deere in the market. With the demand projected to be higher in the future for this product, Deere wants to capitalize on the trend and produce more units, however the 3rd party manufacturer will not agree to produce any more units as it is not in their competitive best interest …show more content…
The biggest obstacle the company will deal with is communication. Effective communication within a company is the key component to ensuring efficient production. When you’re trying to implement a new supplier into the production matrix, it becomes even more important. One way Deere can help streamline the communication with suppliers is through the use of cross-functional teams. Members of the suppliers can work directly in a team with employees of the company to oversee all aspects of production and maintain constant communication regarding status. This allows the supplier to be “in the loop” of operations, and allows for flexibility and prompt response if any problems should …show more content…
If procedures are running smoothly and changes are implemented, everyone in the organization from top to bottom needs to get on the same page. Deere can establish this by providing in-house training to all employees concerning all operations management. Certain employees may be comfortable in their role within the organization; which may not even involve operations. If everyone has knowledge of how the production process will work, it will help make responses to any problems more efficient. This is important as Deere is looking to implement the early supplier integration model, and it is key that each employee is on board. Nolan would be wise to evaluate any partnership from all possible angles while identifying any potential issues that may arise in the future. Working with Deere’s established infrastructure, he can be confident that the suppliers he chooses will represent Deere’s corporate values to the highest standard.
References:
Core Values. (n.d.). Retrieved May 30, 2015, from http://www.deere.com/en_US/corporate/our_company/about_us/core_values/core_values.page?
Petersen, K., Handfield, R., & Ragatz, G. (2005). Supplier integration into new product development: Coordinating product, process and supply chain design. Journal of Operations Management, 23(3-4), 371-388. doi:10.1016/j.jom.2004.07.009
Schroeder,
How would Deere intend to use the Early Supplier Integration (ESI) concept in the Skid-Steer Loader product development?
Deere is attempting to shift the production of their Skid-Steer Loader from a 3rd party manufacturer to a new in-house facility to gain more control over production, capacity and inventory. Currently, the manufacturer they utilize also produces a line of skid-steer loaders and are direct competitors with Deere in the market. With the demand projected to be higher in the future for this product, Deere wants to capitalize on the trend and produce more units, however the 3rd party manufacturer will not agree to produce any more units as it is not in their competitive best interest …show more content…
The biggest obstacle the company will deal with is communication. Effective communication within a company is the key component to ensuring efficient production. When you’re trying to implement a new supplier into the production matrix, it becomes even more important. One way Deere can help streamline the communication with suppliers is through the use of cross-functional teams. Members of the suppliers can work directly in a team with employees of the company to oversee all aspects of production and maintain constant communication regarding status. This allows the supplier to be “in the loop” of operations, and allows for flexibility and prompt response if any problems should …show more content…
If procedures are running smoothly and changes are implemented, everyone in the organization from top to bottom needs to get on the same page. Deere can establish this by providing in-house training to all employees concerning all operations management. Certain employees may be comfortable in their role within the organization; which may not even involve operations. If everyone has knowledge of how the production process will work, it will help make responses to any problems more efficient. This is important as Deere is looking to implement the early supplier integration model, and it is key that each employee is on board. Nolan would be wise to evaluate any partnership from all possible angles while identifying any potential issues that may arise in the future. Working with Deere’s established infrastructure, he can be confident that the suppliers he chooses will represent Deere’s corporate values to the highest standard.
References:
Core Values. (n.d.). Retrieved May 30, 2015, from http://www.deere.com/en_US/corporate/our_company/about_us/core_values/core_values.page?
Petersen, K., Handfield, R., & Ragatz, G. (2005). Supplier integration into new product development: Coordinating product, process and supply chain design. Journal of Operations Management, 23(3-4), 371-388. doi:10.1016/j.jom.2004.07.009
Schroeder,