Dimco Case Study

Gregory Stevens

BA2020

Professor Levine

20 August 2015

DIMCO Supply Chain Management

1. Briefly describe DIMCO’S supply chain.

DIMCO uses approximately 1,350 raw materials and/or components purchased from approximately 375 different suppliers worldwide. DIMCO ships finished products to a central warehouse that supplies 10 regional distribution centers which are composed of six domestic and four foreign distribution centers. They supply 120 local distributors. The local distributors supply 350 retailers.

DIMCO does not currently use supply chain management for manufacturing its worldwide product line of various consumer electronic items. Lucille Jenkins believes that applying supply chain management, it would be profitable and she believes that DIMCO is ready to integrate the suppliers and the distributers.

2. What are the advantages that DIMCO can gain by implementing supply chain management?

Through proper implementation of supply chain management DIMCO will strengthen its partnership with suppliers and distributors. Establishing a common network for communications, feedback, and beneficial suggestions that resolve problems quickly and effectively will increase productivity and decrease cost. Implementing an effective and efficient supply chain will allow them to share information about safety, government regulations, and business concerns that may arise. This will allow the associates to make needed adjustments in a timely manner. By utilizing the supply chain, the associates build a common thread of interdependence and flexibility in solving many of the challenges and concerns while improving production, transportation, and distribution. A more efficient distribution system will decrease transportation costs and increase the speed of how fast the supply chain can move.

3. What would you recommend to DIMCO next?

By decreasing the amount of suppliers and having a much smaller number of them delivering a larger portion of the components...