Wolf Motors

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

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

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

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

5. 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

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

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

8. 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

9. 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

10. Generic Parts • Three benefits to sourcing as one company: • Product costs • Administrative costs • Avoid supply chain disruptions

11. Brand Specific Parts • Benefits: • Improved forecasting • Reduced complexity in dealing with suppliers

12. 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

13. 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.

14. Space Requirements • Centralized ordering and inventory department • Computer system to help alleviate space issues

15. Conclusion • Reduce Costs • Create Additional Space • Maintain Relationships • Order Adequate Inventory • Streamline the Process

16. References • Krajewski, L., Ritzman, L., & Malhotra, M. (2012). Operations management: Processes and supply chains. (9th). 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:10.5437/08956308X5501012 • 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.

17. Questions? Wolf Motors