John Deere Case Study
UNIVERSITY
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. Upon further evaluation, Complex Parts needs some adjustments, however their recent downfalls do no merit their replacement.
Table of Contents
Issue Statement…….………………………….…………………….…. 3
Analysis ……………………………………….…………………….….5
Alternatives & Decision ……………………………………………….. 6
Recommendation & Conclusion..……..………………. ……………….8
Issue Statement
Introduction
John Deere is an agricultural, construction, commercial and consumer equipment producing company. Founded in 1837 in Moline, Illinois, and now conducting business in over 160 countries with 43 000 employees worldwide, it reached net sales of over $11 billion in 2000.
Situation
For the past quarter Deere’s long term partner and supplier of ten years, Complex
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. Upon further evaluation, Complex Parts needs some adjustments, however their recent downfalls do no merit their replacement.
Table of Contents
Issue Statement…….………………………….…………………….…. 3
Analysis ……………………………………….…………………….….5
Alternatives & Decision ……………………………………………….. 6
Recommendation & Conclusion..……..………………. ……………….8
Issue Statement
Introduction
John Deere is an agricultural, construction, commercial and consumer equipment producing company. Founded in 1837 in Moline, Illinois, and now conducting business in over 160 countries with 43 000 employees worldwide, it reached net sales of over $11 billion in 2000.
Situation
For the past quarter Deere’s long term partner and supplier of ten years, Complex