Wolf Motors Team 2 Lisa Gue Nitasha Hatcher

Wolf Motors Team 2: Lisa Gue, Nitasha Hatcher, Kitty Hollingshead-Mancil, Scott John

Wolf Motors-Company Overview � Owner, � 15 John Motors years of service � New auto mall � Unique customer service

Wolf Motors-Company Overview � Supply methods and suppliers � Foreseen dilemma with auto mall ◦ Parts borrowed from other locations when not in stock ◦ Buying experience ◦ Forecasting method based on history ◦ Financial concerns ◦ Supply of parts & materials

Recommendations � Structuring the supplier relationship process � Adopting new purchasing policies & procedures � Reducing the investment and space � Maintaining adequate service levels

The Purchasing Dilemma � Company growth spurned by expansion � Current purchasing plan developed for smaller company with less lines of product � Four different car brands and the need to carry parts for each � Inventory is high and so are costs

Supplier Structuring � Sharing sales data- creates visibility to your suppliers into your demand � Collaboration working with your suppliers to develop customer demand planning

Supplier Structuring � Shorten lead time working with your suppliers to reduce the time it takes to receive inventory

Supplier Structuring � Safety stock levels inventory levels that a company carriers to protect against uncertainty � Just in Time “JIT” or managing inventories so that when product is reduced to zero restocking takes place

Multiple Purchasing Strategies � Generic parts: Items that can be used on multiple brands of cars; fan belts, oils, lubricants � Brand specific parts: Items that are designed specifically for one brand of automobile; guaranteed GM parts

Generic Parts � Three benefits to sourcing as one company: ◦ Product costs ◦ Administrative costs ◦ Avoid supply chain disruptions

Brand Specific Parts � Benefits: ◦ Improved forecasting ◦ Reduced complexity in dealing with suppliers

Overall Sourcing Strategy � Compromise Strategy ◦ Centralized buying for generic parts ◦ Localized buying for brand specific parts � Allows the dealership to get the best service for each category of parts

Reducing investments � To reduce investment, computer system will update the department when inventory is low. � Forecasting the budget in the future but still considering historical demand.

Space Requirements � Centralized department � Computer issues ordering and inventory system to help alleviate space

Conclusion �Reduce �Create Costs Additional Space �Maintain �Order Relationships Adequate Inventory �Streamline the Process

References � Krajewski, L. , Ritzman, L. , & Malhotra, M. (2012). Operations management: Processes and supply chains. (9 th). Upper Saddle River, NJ: Pearson Custom Publication � Schiele, H. (2012). Accessing Supplier Innovation By Being Their Preferred Customer. Research Technology Management, 55(1), 44 -50. doi: 10. 5437/08956308 X 5501012 � Baladhandayutham, T. T. , & Venkatesh, S. (2012). An Analysis on Application of Lean Supply Chain Concept for Construction Projects. Synergy (0973 -8819), 10(1), 25 -36.

Questions? Wolf Motors