Durham International Manufacturing Company
Discuss the current supply chain system at DIMCO.
Durham International Manufacturing Company utilizes the traditional supply chain management system. “Supply chain management is the vital business function that coordinates and manages all the activities of the supply chain linking suppliers, transporters, internal departments, third-party companies, and international systems.” (Reid & Sanders, 2010, p. 100) The activities at Durham International Manufacturing are directed toward the delivery of a finished good to its customers.
Durham International Manufacturing uses 1350 components, which they purchase from 375 different suppliers globally. These finished goods go to a central warehouse which supplies 10 regional distribution centers. Of these 10 regional distribution centers, 6 are domestic and 4 are international. The regional distribution centers then forward the products to an average of twelve (12) local distributors, who supply 350 retailers. DIMCO doesn’t use the supply chain management system for manufacturing its worldwide product line of various consumer electronic items, which range from humidifiers to massagers. The CEO, Lucille Jenkins, believes that the implementation of supply chain management would be profitable, and DIMCO is ready to integrate the suppliers or distributors.
Discuss the advantages that DIMCO can gain by implementing supply chain management.
By implementing supply chain management at DIMCO, they will have the ability to strengthen their partnerships with suppliers and distributors by building a team focused on trust through the process of management. With an established network, relying on open communication, positive feedback, and the encouragement of creative suggestions, they can increase productivity and decrease costs. Another advantage of implementing supply chain management would be to gain a better understanding over internal operations, having the ability to respond to...