John Deere Case Study Supplier Integration in design of Skid Steer Loader

This exposes Deere & Company, to external factors that greatly hinder its success (Al-Abdallah, Abdallah & Hamdan, 2014). Problem statement Due to market dynamics and limitations of using a third party (New Holland), in-house production and engineering of its own products is necessary for Deere & Company. The plans to set up new production facility within 24 months was due to the need for product differentiation from competitors. More, so the new plan would help the company meet production capacity for the skid-steer loader market niche. Recognizing the necessity of in-house manufacturing and engineering, the company has enlisted the services of Scott Nolan as the new supply manager to help set the new facility near Knoxville, TN, and guide the selection and integration of suppliers. The issues extend beyond the boundaries of the company.

The Company has to effectively select and integrate the supplier in the Skid Steer Loader design. Effective suppliers will play a core role in improving product feature, product range, and reduce product development time and delivery (Al-Abdallah, Abdallah & Hamdan, 2014). Stevens & Johnson (2016) note that an effective and robust supply chain enhances competitive advantage and strategic position in the market. Selection of supplier Due diligence dictates analytical evaluation of past records of suppliers to establish responsiveness, specialization and compliance history. Effective coordination and integration of supplier enhances design and technology features due to effective relay of market needs and expertise in design execution (Al-Abdallah, Abdallah, & Hamdan, 2014). Managerial changes There is a need for changes in the managerial practice to accommodate teams of a supplier in decision-making and policy formulation.

Effective managerial decisions that reflect the reality in the markets enhances the design and financial position of the company. Project teams involved in setting goals and a target in financial and design performance should be inclusive of the supplier representatives as well as the sharing of core personnel (Stevens, & Johnson, 2016). Integration of suppliers in design project teams improves their effectiveness and functioning. Open and cross-functional communication strategy Establishing communication strategies and practices will help manage the expectations of partnership between chosen suppliers and the company. Al-Abdallah, Abdallah, & Hamdan, (2014) recommends adopting communication management systems apart from the emails to enhance operation management and product delivery. Direct intercompany communication streamlines and aligns demand and production capacity within the supply chain. As Yeniyurt, Henke, & Yalcinkaya, (2014) notes communication reduces the not made here syndrome.

Optimal communication is a major feature of ensuring good quality and progressive assembly and production. Systematic evaluation of the suppliers will allow only qualified suppliers who will improve the overall business financial and design performance. The selected suppliers should exhibit a good knowledge of the buyer performance and desired design. Early involvement of supplier in the management decision making can promote more sales, exceed profit projections as well as increase rate of ROI (Yeniyurt, Henke, & Yalcinkaya, 2014). With adequate commitment, this is highly feasible. However, changes to the managerial and organizational structure may face barriers resulting from fear of change and uncertainty of the future from some of the employees due to job security issues and resistance to change culture. It is possible for the company to set up the new facility within the tight time schedule as well as achieve and maintain reliable high-quality products in the new facility.