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John Deere and Complex Parts, Inc.

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Background Deere & Company was founded over 177 years ago in 1837 and since then have grown into a multi billion dollar corporation that has established themselves as the leading manufacturer of farming and forestry equipment. Their products reside in over 110 countries and as of 2013; they employ over 67,000 individuals (Statista, 2014). In 2006 members of John Deere’s supplier evaluation team were discussing a long time supplier, Complex Parts, performance. Over the past year, their service had declined resulting in an unfavorable and less profitable relationship between John Deere and Complex Parts and the supplier evaluation team was tasked with providing a recommended course of action to their project manager within the coming week (Wisner, Tan, & Leong, 2012). John Deere employed the Achieving Excellence Program (AEP) as a supply management strategy aimed to develop long-lasting supplier relationships by an evaluation process that promoted communication, trust, cooperation and continuous improvements. Suppliers under the AEP were evaluated in their quality, delivery, cost management, wavelength, and their technical support. The AEP is what the supplier evaluation team was required to utilize in their evaluation and decision process in order to remain fair and unbiased to all of John Deere’s suppliers (Wisner, Tan, & Leong, 2012).
Discuss the strength and weakness of John Deere’s Achieving Excellence Program. Consider and discuss other criteria to include in the analysis. The AEP yielded multiple strengths and weaknesses for both the suppliers and John Deere themselves. Some of their strengths entail being profitable for not only John Deere, but their suppliers too. It also encourages a long-term relationship between John Deere and their suppliers. Long-term relationships yield creditability and foster stability. The AEP is designed to reward their...

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