Assignment #1: Supply Chain Management at Durham International Manufacturing Company (Dimco)

Assignment #1: Supply Chain Management at Durham International Manufacturing Company (DIMCO)

BUS 515

April 24, 2011

Dr. Johnnie E. Drake

Discuss the current supply chain system at DIMCO

DIMCO manufactures many different types of consumer electronic products for world-wide distribution. Currently, the company uses approximately 1,350 different types of materials and parts to manufacture its products. Those materials come from 375 suppliers. Once DIMCO has received the materials needed and manufactured the products, they send the finished products to a central warehouse that in turn distributes the products 10 regional distribution centers. Each one of those distribution centers supplies about 12 local distributors who get the product out to approximately 35 retailers each.

Currently, there is no supply chain management being implemented at DIMCO and CEO Lucille Jenkins is looking into implementing one. The current process seems to have high costs when receiving raw materials from 375 different suppliers. Creating a solid supply chain management system will more than likely reduce costs and increase overall profit for DIMCO.

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

A good supply chain management system coordinates the movement of goods and services throughout the entire process from the suppliers of raw materials to the end customers. The process also fosters an environment that creates open communication between all parts involved. This communication is crucial so that sales forecasts, sales data, and promotional campaigns of the various members in the supply chain are readily known throughout the chain. This open communication helps alleviate bloated inventories or over-pricing of goods and services (Reid and Sanders, 2010).

DIMCO would be able to streamline the supply chain through proper management of its suppliers. DIMCO receives its raw materials from 375 different suppliers....