Analyze the external and internal drivers that influence supply chain principles.
You are a newly hired Analyst at Mitchell Consulting, a firm that specializes in providing managerial expertise in supply chain management. You are assigned as a support role to a senior consultant. Your role does not allow you to make selections for clients, but you will be evaluated for future promotion based upon your work in the analyst role. Your primary client is Johnson Motor Parts (aka Johnson). Your manager, Senior Analyst Andrea Sims, has directed you to work on this case and provide analysis and options to resolve the problems.
Johnson Motor Parts produces engines for their own brand of recreational vehicles just outside of Hammond, Indiana. They have recently experienced issues with the quality of their engines. After an internal review of inventory control processes, Johnson Motor Parts has requested an analysis of current supplier partnerships for the main drive engine bearing. They are also requesting a recommendation of the best purchasing strategy for engine bearings. Johnson Motor Parts places high priority on dependability, customer perception, and price. They are positioned at a mid-level price point compared to their competition. Value with quality is prioritized over lowest price in their industry.
Production over the last 3 years has averaged 32,000 units. The three-year projected range of demand is 28,000 to 40,000 units. Supplier communication system capabilities include the SRM-Link systems Dire and Matrix. Dire provides 24 forecasting and generates purchase orders daily. Matrix provides weekly forecasting and weekly order cycles.
Supplier Details are as follows:
Fax or Phone PO
Dire or Matrix
Your manager, Senior Analyst Andrea Sims, has assigned you to recommend a purchasing strategy for bearings for Johnson Motor Parts. Prepare an executive summary that will be presented to the senior management team at Johnson Motor Parts with your analysis and recommendations.
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