supply chain management and integrated logistics

The DEP/GARD supply chain process has various areas where there is value addition and these include the manufacturing and packaging process of the products that are supplied to GARD. There is also the inbound transportation from the compound suppliers which is counted as a value addition process. The outbound transportation to GARD is also seen in the supply chain as a value addition activity. There are however some stages that are not value adding to the entire supply chain such as the inventory sitting idle in the DEP warehouses.

The other activity that does not add value is the order transmission time that is wasted through handling and receiving and handling orders manually which leads to the products staying in the warehouse for unnecessary long duration of time. There are also too many paperwork involved in the supply chain as it is in the current form. The long duration that it takes to receive materials also adds no value in the supply chain of DEP/GARD (Slater T., 2016).

The minimum performance cycle for the supply chain herein is 8 days order cycle time and the maximum on the other hand is 25 days. The performance can significantly be improved through the use of the 25% and 15% suppliers since the use of this will see the provision of better service levels within the supply chain and the hence resultant higher rates as compared to the prevailing conditions.

It is whoever important to note that the bidding system that was used focused more on the price hence giving out the greater proportions of the raw materials supply to 25% and 15% will mean an increase in the unit cost of the compounds. This however will be complemented by the fact that choosing the 25% and 15% suppliers will ensure there is reliability in the inventory availability thereby reducing possible shortages due to the relatively higher fill rate they have.

This means the DEP can cut down the supply period from 7 days to 6 days or even 5 days depending on how reliable the suppliers are. This will reduce the cost of carrying inventory for the company hence cutting costs significantly that will balance the increased cost, benefiting the company with efficiency and reliability at the end of it all being the trade off in the whole process.

Put in the shoes of Tom Lippet, there are significant changes that I would implement and the first being the absolute overhaul of the bidding system that would see DEP procure compounds only from suppliers who have higher fill rates and that are not predisposed to low performance cycle uncertainties. This will reduce the length of duration of inventory storage. I would also ensure that the suppliers are contacted in good time, well before the next supply, about the changes that are taking place within the company supply chain.

It would be important to make it clear to them as well that high refill rate and the reduced uncertainty rates would be used significantly to determine the suppliers in the future. I would also advocate for establishment of an internet based system that allows for the quick relaying of orders and consequent action on the orders resulting in higher efficiency and lesser paper work that currently burdens the company.

It is however practical to expect challenges or problems with the traditional suppliers who may want the status quo to remain. The online based system will also mean expenses and time consumption in establishing one. There are several selling points that Binish will to be made aware of, for instance.