Richard Binish who has been appointed by GARD wants to review these contracts and revive supply chain. Basically a lot has been changed in supply chain management and Binish wants to review all this supply chain with the change in situation (current market trends). Banished trimmed GARD's products line and primarily based it on faster moving products with higher moving velocity. Now more and more suppliers with specific criteria have come up and everyone's product is comparable. At present, GARD wants to review its supply chain with the improvement in its service window, and minimum threshold percentage. DEP's polymers having 6 major compounds which has been sourced from three firms as 60%, 25% and 15%. DEP has standardized its purchasing criteria and generally maintains a 7 days supply of each compound DEP is not using JIT because of bad experience, but it relies on electronic linkages for procurement. Most customers' orders are produced with in 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 mostly within 200 miles through twice a week delivery routes. This needs maximum 6 days. So DEP supply chain is too much time 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 cha ...Show more