Integrated Logistics for DEP GARD Case Study Example | Topics and Well Written Essays - 2500 words

Integrated Logistics for DEP GARD - fictional character Study ExampleThe present research has identified that Richard Binish who has been appointed by GARD wants to review these contracts and revive return chain. Basically a lot has been changed in preparation chain management and Binish wants to review all this supply chain with the change in situation (current market trends). Banished trimmed GARDs products line and primarily based it on faster moving products with higher moving velocity. Now more and more suppliers with specific criteria have neck up and everyones product is comparable. At present, GARD wants to review its supply chain with the improvement in its service window, and minimal threshold percentage. DEPs polymers having 6 major compounds which has been sourced from three firms as 60%, 25% and 15%. DEP has standardized its buying criteria and generally maintains a 7 days supply of each compound DEP is not using JIT because of lousy experience, but it relies on el ectronic linkages for procurement. Most customers orders are produced within 6 to 8 days of order. In addition to it, DEP takes 3-6 days for shipment from its warehouse. Transportation and distribution which is done by DEP truck service to customers largely within 200 miles through twice a week delivery routes. This needs maximum 6 days. So DEP supply chain is too much snip consuming and hence needs to be streamlined. Basically in this case study, the kind of relationships between buyer and supplier is adding value to the supply chain, GARD and DEPs extensive relationship and understanding as well as DEPs knowledge about the requirement and quality with arms continuance purchasing relationship is adding value to the chain, value in a supply chain is not solely the organizational value but it is the value created across different organizations that combine to create the supply chain. inner an organization Porter identifies nine keys areas that need to be examined when examining how value may be created. He divided these 9 areas into what he referred to as Primary activities and support activities. The primary activities included inbound logistics, processes, outbound logistics, merchandising & sales, customer service. The support activities included technological developments, human resource management, procurement and firm infrastructure. Basically in the case study, procurement stage of DEP is adding value to the chain because it provides certain option to purchase six basal compounds from 6 companies having different percentage of order completion as well as supply sequence. So we can analyze and reach out a suitable combination of companies and products to minimize the supply time and increased percentage of supply. DEPs supply bid has been divided into three parts and maximum quantity suppliers supplies 60% whereas the remaining two are supplying 25% & 15% respectively. Firms basic infrastructure with electronically attached procurement with marke ting/sales department can easily assess demand of the market and right information system can act fast. DEP is also adding value through outbound logistics with its own leased truck fleets. DEP also maintains inventory for 7 days so that they may have enough time for reordering and to get supply of raw material.