Xavier Institute of Management, Bhubaneswar

Elective Course:
Supply Chain Management

Project Report on:

Integrated Logistics

Submitted to:
Prof. Arijit Mitra

Submitted By:
Group 11, Section 3
Roll No. Name

UM21262 Anisha Pradhan

UM21289 Pratha Poddar

UM21321 Akarshika Rai

UM21352 Pratyush Kumar Sahoo

UM21372 Subhasish Pattnaik

 Case Summary
In this case, Tom Lippert, a sales representative for DuPont Engineering Polymers (DEP),
finds himself in a predicament that is all too frequent in today's competitive sales market. As
a supplier to a large manufacturing (GARD), his firm is facing changing times. GARD is
undergoing a "changing of the guard" as Mike O'Leary, Mr. Lippert's long-time contact,
retires. Richard Binish, O'Leary's replacement, puts a new set of supplier expectations to the
forefront of GARD's purchasing strategy. Over time, the quality of rivals' products began to
catch up to DEP's. Firms are now competing on the basis of logistical quality. DEP must
enhance its logistical performance to match the increased customer demands in order to retain
the GARD contract. Customers have come to anticipate better levels of service (higher fill
rates) in less time, which is why the service window is shortening (shorter order cycles). Mr.
Binish's intention to reduce the service window for suppliers from 5 days to 3 days over the
next three years, finally to 1 day, causes Tom to investigate methods to improve his
company's performance and service in order to earn contracts in the future. In GARD's
situation, the new, greater expectations are the result of a leadership transition. However, the
shift reflects the recognition that logistics has evolved into a strategic weapon. The case
demonstrates that DEP must either match rivals' service or risk losing a significant client.
Short analysis

DEP must implement the following steps in order to maintain its commercial relationship
with GARD: DEP must guarantee that it delivers high-quality polymers that no other market
rival does. They must verify that GARD's product process is not hampered by subpar
polymers. They must guarantee that its services and goods provide them with a competitive
advantage over their competitors. They must also guarantee that their bid is the lowest pricing
bid in order to receive the order. They must ensure that delivery times are decreased and that
they attain same-day delivery rather than two days. They must ensure to achieve 96.5 %
service capability in the upcoming year. The reason we advised the following techniques is
that after reviewing the case, it was determined that DEP's product and services were the best
among rivals according to O'Leary's recommendations. However, Binish intends to make
improvements in the future to guarantee that supplier costs are decreased and GARD receives
the highest quality product and service. According to his intended criteria, DEP's current
product, service, and delivery are insufficient, and there is much room for improvement.
 Solutions to Case Question
Qu.1
Company 1 Company 2 Company 3 Company 4 Company 5 Company 6
ABEF ABCD ABEF CD EF C
D

DEP Receiving

Materials Inventory

Manufacturing

Remote Warehouse

DEP TRUCK

GARD

For something to add value three things must happen: - the step must change the form or
function of the product or service, the customer must be willing to pay for the change, and the
step must be performed correctly the first time. Value-added is the additional features or
economic value that a company adds to its products and services before offering them to
customers. In this case, the following stages are adding value: Inbound transportation from
the suppliers, maintaining 7 Day Stock, standardization of polymer manufacturing,
continuous investment into technology, resulting in advanced manufacturing equipment,
using 60%, 25%, 15% ordering to protect from material shortages and unnecessary price
increases, maintaining fleet of delivery vehicles, and maintaining minimum acceptable fill
rate at 92%. The following stages are not adding any value: dwell time at the remote
warehouse, materials receiving, matching orders to paperwork, and materials inventory. Also,
customers are confined to placing order via telephone or fax, only delivers twice a week, uses
common carriers for customers outside 200mi radius, DEP Products are equal with
competitors are other non-value adding stages.
Qu. 2

The minimum performance cycle for the supply chain diagrammed above using the primary
DEP suppliers is 11 days (Company 1= 3 days for compound A&B, Company 4= 4 days for
compound C&D, Company 5= 4 days for compound E&F). Similarly, the maximum
performance cycle time is 25 days (Company 1= 9 days for compound A&B, Company 4= 9
days for compound C&D, Company 5= 7 days for compound E&F)

Qu. 3

Yes, it appears that the performance cycle may be enhanced by the usage of 25% and 15%
suppliers. Company 2, for example, provides greater service levels and less unpredictability
than Company 1. Using more dependable suppliers may result in higher material prices,
however this can be offset by lowering DEP's material stocks. Greater supplier assurance
minimises the need to have large inventories on hand. The new suppliers must be dependable
and prompt. Small variations cause big issues, therefore paying a bigger premium for
consistency would be well worth it in the long run.

Qu. 4

As Tom Lippet, I would aim to find a means to keep my items at the lowest cost to DEP; find
a way to keep my delivery time down; and have a quick turnaround time on electronically
accepting orders. As a result of Mike O'Leary's departure, these modifications would be
required for GARD to remain a top choice for DEP. Maintaining low GARD pricing may
need a percentage loss in profit, but if GARD has a lengthy contract, the cost is worth the
gain in longevity. To reduce delivery time, we may need to hire extra vehicles or use outside
carriers with our fleet. To obtain better electronic orders, it may be necessary to upgrade the
GARD electronic database and rotate investments between technologically sophisticated
production equipment and automation / information systems technology).

Qu. 5

Making changes to sell Richard Binish on DEP's next bid would include, but would not be
limited to, keeping product prices as low as possible, having all material available for
delivery as soon as the order is requested, converting in-transit storage to polymer storage to
allow for faster manufacturing time, maintaining good product quality, and creating
shipments as orders are completed. The order winning criterion would be the firm that can
deliver the compound polymer to them at the lowest possible cost, in the shortest amount of
time, with the highest possible quality, negotiate the minimal service level, and quickly
submit the product request. Because you only have a one-year contract, this adjustment must
be implemented within six months. This provides the organisation approximately six months
to adapt, three months to test, and three months to re-evaluate the JIT manufacturing
approach. After that, the corporation would have a completely tested and changed procedure
to show to DEP. Finally, this implies that supply chain management is dictated by supply and
demand. In order for the consumer to be satisfied with the product that you have provided
them, you must deliver the necessary materials to the location in a timely manner.