Determine Whether Integration Efforts Should Start with Suppliers, Distribution, or Both.
Supply chain management is a discipline not only concerned with the inputs, the outputs, or the storage-related processes in a company or any other organization that delivers an end-product or service package to customers; it is also concerned with the strategies involved in ensuring that every process happens the way it should. When it comes to choosing where the Durham International Manufacturing Company (DIMCO) integration efforts should start, the answer would be “it depends”. It is common among companies to start focusing on integrating supply chain management components that are more problematic. One can most of the time assume that the more factors and variables there are in an equation, the higher the chances that it will become complicated and then later on problematic (Smichi et al., 2007). DIMCO deals with 375 different suppliers around the world while it only deals with 10 Regional Distribution Centers. Therefore, we can assume that the input part of the supply chain is the more problematic one for the DIMCO management. Therefore, it should start integrating the suppliers group first. However, the management should never forget about the storage and distribution process as these two are also important components of managing a supply chain. Neglecting one aspect of the supply chain can be as damaging as neglecting all aspects of it. The ultimate goal here is to attain balance.
Recommend Ways that DIMCO could benefit from leveraging B2B E-Commerce
The most obvious benefit of investing and engaging in Business to Business E-commerce systems is the improved rate of communication. Communication is the single, most important thing that all organizations involved in a supply chain cannot afford to neglect. In fact, in a supply chain, continuous communication is inherently necessary. One way how DIMCO can benefit from a B2B E-commerce system is by signing up for a membership in an E-Commerce Portal that has something to do with the niche of the company, which in this case, the international manufacturing niche. They can strive to improve their ratings in that portal so that they can have greater chances of being able to find good deals with new potential customers in the future, as a result of their E-commerce efforts. The ultimate benefit that DIMCO could receive from engaging in B2B E-commerce would be an overall increase in their profits and revenues. Through e-commerce, communication between old (active and inactive), and potentially new suppliers and customers can happen more smoothly. Every participant can negotiate their offers without having to worry about expensive transportation costs (especially for international business dealings) because the negotiations are done virtually (Halldorsson et al., 2007). As a result, DIMCO’s suppliers and clients pool will be filled. All of which shall lead to an overall increase in productivity and revenue, which is what every organization wants.
Determine What Steps DIMCO could take to improve its relationship with Suppliers
There are many ways how DIMCO could improve its relationship with the suppliers. Having an organized and efficient purchase, stock control, and payment systems can already be seen by suppliers as a very pleasing characteristic—the same characteristic that can make them think twice before rejecting any expansion and development offer from DIMCO that has something to do with their roles in its performance in the market (Mentzer, 2001). DIMCO can also think about reducing the number of suppliers involved in its supply chain because some suppliers offer deals depending on the level of exclusiveness that the buyer (DIMCO) can offer. DIMCO should practice professionalism at all times. Making sure that every deadline is met and that every transaction with the suppliers is flawless indicate that the organization they are dealing with is a professional one. Suppliers typically judge their transactions with their customers in terms of quality, timeliness, overall competitiveness, innovation, and finance. Making sure that DIMCO excels in all these 5 criteria can definitely help improve its relationship with the Suppliers.
Discuss the most effective way for DIMCO to eliminate waste in its Supply Chain
There are seven manufacturing wastes that the DIMCO management should consider addressing: Overproduction, waiting, transportation, non-value added processing, unnecessary motion, excess inventory and defects (Jacoby, 2009). It is every organization’s ideal to perform every process involved in the supply chain free of waste. In reality, this does not occur. The best thing that organizations can do would be to minimize waste by doing steps that are practical and problem-oriented. Surprisingly, these seven manufacturing wastes are interrelated. For example, overproduction can be a result of an excessively high level of productivity but it’s the high level of productivity that can reduce the effects of unnecessary motion. The best thing that DIMCO could do is to make sure that everything is organized and that they can monitor every organization inputs and outputs, as well as the real-time level of stocks in their inventory. That way, the management can immediately know when or what part in the supply chain management process they experience wastes. After knowing where the problem lies, they can already think of a plan that could kill the root of the problem and to ultimately minimize their wastes.
Works Cited
Halldorsson, A., Kotzab, H., Mikkola, J., & Skjoett-Larsen, T. (2007). “Complementary Theories to Supply Chain Management.” Supply Chain Management: An International Journal Volume 12 Issue 4.
Jacoby, D. (2009). “Guide to Supply Chain Management: How Getting it Right Boosts Corporate Performance.” Bloomberg Press 1st Edition.
Mentzer, J. (2001). “Defining Supply Chain Management.” Journal of Business Logistics Vol. 22, No. 2.
Smichi, D., Kaminsky, P., & Smichi, E. (2007). “Designing and Managing the Supply Chain.” Mcgraw Hill.
