Supply Chain Management at Durham International Manufacturing Company

Supply Chain Management at Durham International Manufacturing Company (DIMCO)

BUS 515

Dr. Gilbert

Derrick McLellan

July 16, 2011

1. Discuss the current supply chain system at DIMCO.

Lucille Jenkins, the CEO for DIMCO has an opportunity to increase its profits significantly by working on implementing a supply chain management. DIMCO is in the business of manufacturing numerous electronic products like hair dryers to humidifiers to massagers for the entire world market. In DIMCO’s current supply chain, they use about 1350 different components and /or raw materials to manufacture its product. DIMCO builds relationships around the world by purchasing from approximately 375 different suppliers located all around the world. When it comes to distribution, they send their finished products to a centralized warehouse that supplies 10 regional distribution centers (RDC). Of the 10 regional distribution centers, 6 of which are domestic and the other 4 are located outside the United States. Each RDC will ordinarily supply an average of 12 local distributors who in turn supply about 35 retailers.

Based on the information provided above, DIMCO has a basic supply chain structure. A basic supply chain’s structure usually begins with external suppliers that supply and also transport raw materials and components to the manufacturer. The second step in this process would be the manufacturer transforming these materials into the finished products that are essentially shipped to either the manufacturers own distribution centers or to the wholesalers. Finally, the product is then shipped to the retailers who sell the finished product to the consumers. So when you look at a basic supply chain structure, the goods flow from the very beginning of the chain through the manufacturing process to the customer.

2. Discuss the advantages that DIMCO can gain by implementing supply chain management.

The decision for...