Team

Prashant Varma

Nadit Khatri

Sumaiz Syed
Question 1.
Conceptual – Diagrammatically present the DEP GARD supply chain and determine what stages are adding
value and what stages are not?

Question 2.
Using the primary DEP suppliers (60 percent of the business), what is the maximum performance cycle for the
supply chain? What is the minimum?

For the primary suppliers comprising 60% of business, the minimum cycle is 8 days and maximum in 25 days.

Question 3.
Can this performance cycle be improved through the use of the 25 percent and 15 percent suppliers? What
trade-offs must be made to use the suppliers?

Answer:

Yes, the performance cycle can be improved with the use of 25 percent and 15 percent suppliers. Price is the
primary importance for DEP (due to the bidding process), and using so may even increase the average cost of
each component.

But, following are the benefits of doing so –

 Helps lowering 7 – day supply of each component to any lesser interval (6/5 day supply)
 Higher speed of the flow of the products
 Higher fill rate

The above will reduce the inventory costs which will cover the extra costs incurred for choosing 25 & 25 percent
suppliers.

Question 4.
If you were TOM, what changes would you make to DEP operations? Why? What problems do you foresee as
you try to implement these changes?

Answer:

Following are the changes I would bring out if I were Tom –

 Improving the performance cycle through the use of the 25 percent and 15 percent suppliers.
 Share about the changes to compound suppliers, to be ready for future challenges and prove to have
better Order Winners with in the 1 year period.
 Introduction of ERP system and other information system for integration, communication, information
flow and efficiency.
 Automated outbound processes including capacity decisions.

Question 5.
How would you sell the changes mentioned above to Richard on DEPs next bid? What will likely be qualifying
criteria and order winning criteria?

Answer:

The introduction of the above changes will bring –

 Collaboration and integration of data.

 Higher fill rate
 Reduced costs
 Communication
 Functional
 Better value streaming
 Visibility
Qualifiers – Service level, reduced costs

Order Winners – all the others.