ARSHAD AYUB GRADUATE BUSINESS SCHOOL UNIVERSITI TEKNOLOGI MARA
CASE STUDY 5 : THE DEAR JOHN MOWER COMPANY
ASSOCIATE PROF ALWI SHABUDIN
NURNADIRAH BT AHMAD ZAIMI
7th APRIL 2014
1) Identify and discuss the major issue(s) in the case
Supply chain management is the coordination of all supply chain activities involved in enhancing customer value and achieve sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. In that case, the issues that John Mower Company faces with their supply management part is regarding to get internal customers, whether in design engineering, plant engineering, administration and other in order to recognize and accept the advantages of early supply chain management and supplier involvement in the development of materials, equipment and services to be provided by outside suppliers. The keys are (1) the presence of professionals in supply management who will add value through their and their suppliers’ early involvement and (2) the use of marketing skills by these professionals to convince their customers and perhaps management of the necessity of early involvement. John Mower Company also faces a declining in market share of 10 percent. The consequences of this attributes to John’s ability to survive as a profit declined.
2) Prepare a list of advantages of the inclusion of supply management and prequalified suppliers.
Every organization is a part of one or more supply chain. Either a company provides a service, sells directly to the end customer, manufactures a product or even extracts material from earth, it is characterized within its supply chain. Earlier, organizations placed little emphasis on organizations within their supply chain network. However, supply chain management had become a forefront of management’s attention due to three major developments (Balsmeier 1996). First is the information revolution. Second is Customer demands in areas of service and product cost, delivery, quality, technology and concept of cycle time brought about by increased global competition and third is emergence of newer forms of inter-organizational relationships. These developments have nurtured the emergence and integration of supply chain approach. To remain competitive, small firms have to offer superior quality goods at the lowest prices possible. The need to minimize product costs makes effective supply chain management vital. There are costs involved in every process of the product life cycle, and it is the responsibility of management to ensure that these costs are kept low, so the company can continue to pass along these savings to the consumer. The advantage of including supply chain management and prequalified suppliers is include : 1) Reduces costs
2) Increase efficiency
3) Increased Profits
4) Reduces time to market
5) Improved quality
6) Much lower stocks and inventory
3) Prepare a list of disadvantages of excluding supply management and suppliers from the new product development process. The supply chains represents the complex relationships of an organization with its trading partners through whom it sources materials, manufactures products and delivers products or services to the customers. The supply chain links all the activities in the procurement, transformation and storage of raw materials and intermediate products, and sale of finished goods. Supply management personnel should be able to pass on information regarding new technologies and product that are available to the product design group. Supply management can aid source selection by discussing potential suppliers...
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