Integrated Logistics for DEP/GARD
MGT-309
May 10, 2015
RK

Introduction Supply chain management is “multiple firms collaborating to leverage strategic positioning and to improve operating efficiency” (Bowersox, 4). Proper integration and management results in efficient and successful operations. Without effective supply chain management, business functions can fail through reduced reliability of delivery, frequent shifts in operations to make up for shortages in materials and delivery, which ultimately can lead to a reduction in a firm’s reputation. Customers want products and resources at the right time, condition, product, price, place, and person. DEP/GARD contract negotiations is a case where DEP has to improve its economic, market, and relevancy value to remain a supplier for GARD.

Analysis

Firms must constantly seek to improve operations to improve the customer perspective of value, from an economic, market, and relevancy perspective (Bowersox, 5). Without improving value, a firm can become obsolete and lose business. Under a new purchasing agent, GARD looks to improve its efficiency of operations. Currently the firm works within a 10 day delivery, plus or minus 2 days, which is a 5 day service window. If this is the industry standard, GARD will not have a competitive advantage over other similar firms and must continually seek to improve it operations. GARD seeks to reduce the service window to 3 days. This added value will improve GARD strategic position and improve market competitiveness. Within the supply chain, GARD has to be mindful of the integration of other firms to ensure their goals can be met by other firms that support their operations. DEP order process results in production within a 6-8 day span from order due to manual receipt and input of orders from customers. With the prospect of GARD reducing its service window, this 6-8 day