In: Operations Management
Chapter 9 Running Case Assignment: Improving Operational Excellence: Identifying Supply Chain Management Solutions
Software skills: Web browser and presentation software
Business skills: Locating and evaluating suppliers
In this project you’ll use the Web to identify the best suppliers for one component of a dirt bike and appropriate supply chain management software for a small manufacturing company.
A growing number of Dirt Bikes orders cannot be fulfilled on time because of delays in obtaining some important components and parts for its motorcycles, especially their fuel tanks. Complaints are mounting from distributors who fear losing sales if the dirt bikes they have ordered are delayed too long. Dirt Bikes’s management has asked you to help it address some of its supply chain issues.
Use the Internet to locate alternative suppliers for motorcycle fuel tanks. Identify two or three suppliers. Find out the amount of time and cost to ship a fuel tank (weighing about five pounds) by ground (surface delivery) from each supplier to Dirt Bikes in Carbondale, Colorado. Which supplier is most likely to take the shortest amount of time and cost the least to ship the fuel tanks?
Dirt Bikes’s management would like to know if there is any supply chain management software for a small business that would be appropriate for Dirt Bikes. Use the Internet to locate two supply chain management software providers for companies such as Dirt Bikes. Briefly describe the capabilities of the two software applications and indicate how they could help Dirt Bikes. Which supply chain management software product would be more appropriate for Dirt Bikes? Why?
Answer:-
Bike Bandit & J.C. Whitney. Are the two main alternative suppliers for motorcycle fuel tanks. The average cost of a standard dirt bike fuel tank is about $242. There will be a flat $7.95 standard ground shipping charges for the orders having value more than $20. It will take usually 3-5 working days for shipping form Bike Bandits.
While in case of J.C. Whitney, the average cost of a standard dirt bike fuel tank is almost $50. There will be a flat $16.98 standard ground shipping charges for the orders having a value between $50.00 & & $75.00 and the company will take almost 24 hours to ship the product. If the order is placed before 3 PM (CST), shipping is done same day.
There will be a total purchase cost of almost $250 if the buying is done from Bike Bandit and it is $67 in case of J.C Whitney. There is a shorter expected delivery time in case of J.C Whitney and it also offers much lower price having a difference of $183.
Answer:-
High Jump Supply Chain Advantage Suite and Microsoft Dynamics AX 4.0. are the two main two supply chain management software providers suiting to the need for Dirt Bikes.
High Jump software clients is said to have a robust integration for having real-time, seamless, information exchange between two systems. This is quite important in present business environment and it must combine the business process across the back office and warehouse operations. Adjustments, customer returns, purchase order processing, order fulfillment, quality holds & cycle counting. Are included in the comprehensive set of standard transactions
The facility of optimizing the processes and to have better connection and integration with the complete supply chain from customers to suppliers and to support the demand-driven operations are provided to the suppliers by Microsoft Dynamics AX 4.0. This also facilitates seamless integration of old software programs with Microsoft Dynamics AX 4.0. As this software can also operate as a core component along with working with other software such as High Jump, this can be seen as an added benefit.
In my opinion, Dirt Bike should go for Microsoft Dynamics due to followings reasons:-
• It was already cutting edge by the time it made its first appearance in 2007.
• It has very good integration capabilities with older software programs.
Microsoft Dynamics is also a better supply chain software program as High Jump is a software part which has to operate with the other components for having a comprehensive software enterprise, on the other hand, Microsoft Dynamics can work stand alone or with other programs if it is really required.