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Deere & Company

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Deere & Company
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E a r l y Su p p l i e r I n t e g r a t i o n i n t h e De s i g n o f t h e Skid-Steer Loader1

“Congratulations, Scott. You are the new supply management manager of our new Deere & Company Commercial Worksite Products manufacturing facility in Knoxville, Tennessee. As you know, we really need your help to make this new facility fully operational in 24 months. I am sure you realize that a critical responsibility of your new job is to integrate suppliers into the product development process for our own Deere manufactured skid-steer loader as quickly as needed. You will be reporting directly to me, and I need a proposal from you by the time we meet next week on June 15, 1996.” As Scott hung up the telephone with James Field, plant manager and his immediate boss, he realized that this was not a simple request. In his proposal, he knew he would need to (a) identify and justify which suppliers to integrate in the product development phase, and (b) specify how to structure the interactions with these chosen suppliers. The recommendations in his proposal had to ensure that this new plant would be up and running smoothly by the target date in July 1998.

Deere & Company
Deere & Company, headquartered in Moline, Illinois, had more than 150 years of history, making it one of the world’s oldest business enterprises. A well-respected company, Deere & Company had a core business portfolio in 1996 comprised of the manufacturing, distributing, financing and servicing of agricultural equipment (e.g., combines and tractors), construction and forestry equipment (e.g., log skidders and forklifts), and commercial and consumer lawn care equipment (e.g., lawn and garden tractors and mowers), as well as other technological products and services. With more than 38,000 employees worldwide, Deere & Company conducted business in more than 160 countries.

The Skid-Steer Loader
The Product
The skid-steer loader, a small loader with a 1,000–3,000 pounds load capacity, was

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