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Case Study Wolf Motors

Q.no.1
What recommendations would you make to john wolf with respect to structuring the supplier
relationship process for the wolf motors dealership network?
Wolf Motors expanded its network of auto dealerships to add its first auto supermarket. The
supermarket will carry three different makes of cars to the facility. John Wolf, owner of the
dealership, has identified three factors that have contributed to the success of his dealerships.
The implementation of “one price-lowest price” concept of pricing and robust “after the sale’’
service to all their customers. With focus on the service aspect, three components are crucial to
providing quality “after the sale” service, well-trained technicians, the latest technologies, and
an adequate supply of service parts. Under the current structure each dealership is responsible
for ordering and managing its own inventory. The recent growth has brought with it both space
and financial resource constraints.
Developing an effective supplier relationship process is critical for any dealership network's
success. Here are some suggestions for John Wolf on how to arrange the Wolf Motors
dealership network's supplier relationship process.
The nature of the service or product determines the design requirement for the upstream
supply chain. The supplier relationship process, which focuses on the interaction of the firm
with suppliers, includes five major nested processes (1) sourcing (2) design collaboration (3)
negotiation (4) buying (5) information exchange (Malhotra & Ritzman, 2019b). We can see these
processes for john wolf motors as

 Establish specific criteria for selecting vendors. Consider product quality, dependability,
affordability, delivery speed, and after-sales service. Before getting into partnerships,
conduct extensive study and due diligence.
 Sort suppliers according to their importance and impact on the dealership's operations.
Divide them into three categories: strategic, preferred, and transactional. Allocate
resources and attention accordingly, with a greater emphasis on strategic suppliers.
 Identify essential suppliers who are critical to the success of the business. Build long-
term relationships with these suppliers. Collaboration is essential for aligning goals,
improving mutual performance, and developing cooperative growth strategies.
 Establish effective communication channels with suppliers. Regularly share relevant
information about market trends, sales forecasts, and inventory levels. Open
communication helps suppliers plan and adjust their production accordingly.
 Define and measure supplier performance using key performance indicators (KPIs) such
as on-time delivery, lead times, product quality, and responsiveness. Regularly review
these metrics with suppliers and collaborate on improvement plans. (R, 2021)
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 Negotiate favourable terms and conditions with suppliers, ensuring clarity on pricing,
payment terms, warranties, and dispute resolution. Have well-drafted contracts that
outline the expectations and responsibilities of both parties (Malhotra & Ritzman,
2019a).
 Implement technology solutions that allow you to see inventory levels, order status, and
manufacturing timelines in real time. This aids in demand forecasting, stockout
prevention, and inventory optimisation.
 Determine potential supply chain risks such as geopolitical difficulties, natural disasters,
or economic swings. Create backup strategies to mitigate these risks and assure
business continuity.
 Assess suppliers based on their ethical practises and initiatives towards sustainability.
Prioritise suppliers who follow ethical business practises and share the dealership's
values.
 Foster a culture of feedback and collaboration with suppliers. Regularly seek input from
suppliers on ways to improve processes, products, and services. This collaborative
approach can lead to innovative solutions.
 Establish a system for continuous improvement in the supplier relationship process.
Regularly review and adapt the process based on changing market dynamics, internal
needs, and feedback from stakeholders.
Wolf Motors should consider a centralized corporate level Materials Management System to
consolidate buying decisions for each of the 4 dealerships. This would facilitate greater
leveraging with suppliers for consistent quality-control. Economies of scale can be achieved by
negotiating for better product pricing through higher volume purchasing.
John Wolf should build a good relationship and trust with his suppliers so that they may share
information on inventory levels.   With the use of technology Wolf can share information within
the Wolf Motors dealership network.   He can use SAP‚ Enterprise Resource Planning to share
and organize information and data within the company.   By tracking inventory within the
company, he will know where the inventory is and how much is available at all.
By implementing these recommendations, John Wolf can create a well-structured supplier
relationship process that enhances operational efficiency, reduces risks, fosters innovation, and
strengthens the overall performance of the Wolf Motors dealership network.
Q.no.2

How might purchasing policies and process differ as the dealership purchase different types of
service parts and materials, for example lubricant versus genuine GM parts?
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Purchasing policies and processes at a dealership can indeed vary based on the types of service
parts and materials being acquired. Let's break down the potential differences when purchasing
lubricants versus genuine GM parts:

 Lubricants are often considered commodity items, and dealerships might have a wider
range of suppliers to choose from. These suppliers might include both local distributors
and larger manufacturers while GM parts are specific to the brand and require a close
relationship with authorized GM parts distributors. The dealership might have stricter
supplier requirements and contracts in place due to the need for quality assurance and
adherence to brand standards.
 Inventory management for lubricants might be simpler, focused on maintaining an
appropriate stock level to meet immediate service needs. Dealerships might employ
more sophisticated inventory management systems to track part numbers, usage, and
reordering. This ensures that they have the right parts on hand when specific vehicle
repairs are required.
 While documentation is important for any procurement, it might be less complex for
lubricants. Basic documentation of the supplier, quantity, and price might suffice.
Purchasing genuine parts often requires more comprehensive documentation due to the
need to verify authenticity, warranty claims, and compliance with manufacturer
standards.
 While quality is important, the certification process for lubricants is often less strict.
Dealerships will almost certainly continue to check that lubricants satisfy industry
standards and regulations, although the process may be streamlined. Genuine parts
must meet GM's stringent requirements and quality standards. Dealerships may be
required to confirm the legitimacy of the parts as well as their compliance with GM's
quality control systems.
 Because lubricants are consumable, they may necessitate more regular orders. To
prevent unnecessary inventory expenditures, dealerships may adopt just-in-time
ordering. These parts may be ordered in bigger quantities and less often. Because they
are unique to GM cars, dealerships may keep a stock of common parts on hand to assure
timely availability for repairs.
 Pricing for lubricants might be more negotiable, and payment terms might be relatively
flexible as compared to genuine parts. Returns and warranty claims might be less
complex for lubricants. If a lubricant is found to be defective, it can often be exchanged
relatively easily. Warranty and return processes for genuine parts might involve more
documentation and scrutiny, as these parts directly impact the performance and safety
of the vehicles.
Overall, the purchasing policies and processes for lubricants and genuine GM parts can differ
significantly due to factors such as supplier relationships, quality control, inventory
management, documentation, and the specific nature of the parts themselves. Dealerships
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need to tailor their approach to each type of product to ensure efficient operations and
customer satisfaction.

Q.no.3
How can supply chain design and integration help john wolf reduce investment and space
requirement while maintaining adequate service levels?
John Wolf can employ several supply chain design and integration strategies to reduce
investment and space requirements while still maintaining adequate service levels. Here are
some key approaches:
Accurate demand forecasting helps in aligning inventory levels with actual customer demand.
By implementing advanced forecasting techniques and inventory optimization tools, John Wolf
can minimize excess inventory, thus reducing storage space requirements and the associated
costs.
Implementing lean principles and JIT inventory strategies can help minimize inventory holding
costs by receiving materials and parts just when they are needed. This reduces the need for
large storage areas and frees up space for other purposes. (Wiseglass, 2021)
Suppliers and customers eliminate the need for excess inventory through better operational
planning. Vendor managed inventories lowers costs by reducing administrative and inventory
costs. Order placement costs are also reduced. Vendor managed inventories a system in which
the supplier has access to the customer’s inventory data and is responsible for maintaining the
inventory on the customer's site (Malhotra & Ritzman, 2019b). VMI can shift some of the
inventory management responsibilities to the suppliers. They can monitor inventory levels and
replenish stock as needed, reducing the need for John Wolf to hold large quantities of
inventory.
Instead of having multiple small storage spaces, John Wolf could consider establishing
centralized distribution centres strategically located to serve various dealership locations. This
reduces the need for unnecessary storage space and can improve efficiency in managing
inventory and order fulfilment.
A key element to successfully integrating a supply chain and implementing supply chain risk
management tactics is information technology. Cloud competing the practice of using a
network of remote servers hosted on the internet to store manage, process data. Inventory
management software, warehouse management systems, and integrated supply chain
platforms to track inventory in real-time, optimize storage layouts, and manage replenishment
efficiently. This can help identify areas of improvement and prevent overstocking. Cloud
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computing can be a cost-effective way to deal with digitally connecting the participants in a
supply chain (Malhotra & Ritzman, 2019b).
By combining these strategies and tailoring them to the specific needs of John Wolf's
operations, the dealership can effectively reduce investment and space requirements while
maintaining the necessary service levels for its customers.
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References

R, A. (2021, December 15). 6 essential supplier KPIs every procurement leader should be

measuring. Essential Business Guides. https://www.zoho.com/expense/articles/6-

essential-supplier-kpis.html

Wiseglass, S. (2021, April 22). 6 Supply Chain Cost Reduction Techniques. Inquesta.

https://inquesta.co.uk/blog/supply-chain-cost-reduction-techniques/

Malhotra, M. K., & Ritzman, L. P. (2019b). Operations management. Processes and supply

chains (12th ed.). Pearson.