John Deere Supply Chain. For the past quarter Deeres long term partner and supplier of ten years, Complex Parts Inc. has not been achieving great results according to Deeres supplier evaluation team. This has become an issue and the team
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SUPPLY CHAIN MANAGEMENT Assignment One Executive Summary John Deere is an American based company out of Moline, Illinois currently trying to assess one of it's supplier company's performance. The company in question is Complex Parts Inc. who has been a supplier for Deere for the past ten years with annual sales to its Moline unit of approximately $3.5 million. The issue in question comes after five members of an evaluation team discussed Complex Parts' performance over the past year. Although Complex Parts has been a long term supplier providing Deere with a key manufactured part requiring significant engineering and input testing, they have been noticed to have fallen behind with customer satisfaction. Deere's AEP program has served as a grading base for the supplier and it seems they have fallen behind this past quarter. It is the team's intent to analyze the situation and to determine whether there is a need for a new supplier. Despite Complex Parts' drop in its delivery rating this past quarter, it has also come to the attention of the evaluation group that the company is not fully responsible for the data. There seem to be issues with Deere's inability to return important phone calls from Complex Parts' customer service group.
Analysis Quantitative Complex Parts provides Deere with a special part, and has had great sales figures in the past. This company is looking forward to expanding its business with Deere, and must therefore improve the delivery rating to what it has previously been. The issue of not having Deere personnel return their phone calls is also quite pressing, as this is affecting their rating and in turn their business. Yet not being on time with price quotes is an issue they must also look to. Another issue is Complex Parts' products have not met their required cost targets; in turn they are reducing Deere profit. This problem also relates to their inability to suggest methods for cost reductions. However, they have been developing their R&D department and because of it Deere has been able to take suggestions and make the necessary changes. Qualitative Upon review of this information, according to the evaluation team's members, Complex Parts has been doing a good job in following through with suggestions for quality improvement. They have also taken a proactive business approach and an active role in keeping up with specific changes made be Deere. Complex Parts has also been able to internalize quality plan elements and has had improved quality performance; this might be thanks to their recent ISO 9000 certification.
might be a good way to push innovation and development of their product since the bidders would have to provide great quality and precision to meet Deere's high standards. They might also offer a better product for a lower price. Recommendation Deere strives on its AEP and has put forth a lot of time and effort in the development of this program. Complex Parts has also invested time, money and effort into this program and into its ten year business partnership with Deere. They are very much looking forward to expanding their sales with Deere, hence they have improved their company and are trying to make sure they work with Deere so that both parties have the same expectations with regards to product specifications and quality. Due to their history and commitment to each other, the best option is alternative one. Conclusion Overall, Complex Parts has shown great interest in adapting to Deere's requirements and they have done very well in the past under the supplier classification criteria. Deere should therefore talk to Complex Parts and elaborate on their concerns and address the shortfalls they seem to be having. Complex Parts would not want to lose Deere's business so they will more than likely be all ears; and after all, the customer is always right.
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