At Durham International Manufacturing Company

Supply Chain Management at Durham International

Manufacturing Company (DIMCO) - Assignment 1

Strayer University

October 23, 2011

Bus 515- Operations Management

Within any supply organization there is a need for a supply chain and a supply chain management. A supply chain is defined as a network of all the activities involved in delivering a finished product to the customer (Reid & Sanders, 2010). Supply chain management is the vital business function that coordinates and manages all the actives of the supply chain (Reid & Sanders, 2010). Within the paper we are going to look at the supply chain for Durham International Manufacturing Company (DIMCO) and see what changes they can make in there supply chain to be an even more successful company.

Discuss the current supply chain system at DIMCO. DIMCO’s current supply chain system consists of 1,350 different components and/or raw materials that come from over 375 different suppliers around the globe. When products are finished they are sent to a central warehouse that supplies ten regional distribution centers. The regional distribution centers are broken down into six that are domestic and four that are outside of the United States. Each of the distribution centers supplies on average twelve local distributors, and they each supply thirty five retailers.

Discuss the advantages that DIMCO can gain by implementing supply chain management. Advantages that DIMCO would gain by implementing a supply chain management is reduction in operating cost, reduce inventory, increase in profitability, better value in there products, lowering the cost on the products that that offer, fewer products that are returned, improvement in customer service, reduction in lead time and duplication of effort (Reid & Sanders, 2010).

Another advantage that DIMCO will gain by implementing supply chain management is building a closer relationship with their suppliers. There suppliers will see in increase in...