Chain Management at Durham International Manufacturing Company (Dimco) Case Study

Assignment 2 – Week 4

Chain Management at Durham International Manufacturing Company (DIMCO) Case Study

BUS 515 – Operations Management

Determine whether integration efforts should start with suppliers, distribution, or both. Explain the rationale for your decision.

Integrating a supply chain is an incremental process, with priority typically given to the highest potential returns on investment. Based on strategies, needs, and potential returns, different priorities and approaches may be assigned to the supply chains of different segments of a business. The integration process can be expensive and is, in many respects, an exercise in resource allocation. Many companies adopt an approach that begins at home and gradually works outward through the supply chain. The first step is to make in-house improvements, such as inventory reductions that can reduce working capital, warehousing, and transportation costs. An analysis of in-bound logistics can often reveal opportunities for savings. From there, the integration effort expands outward.

I believe that integration efforts should start with the suppliers, because supplier selection, development, and integration is a strategic initiative that is undertaken as a part of a company's overall competitive strategy. This strategic approach to outsourcing combines internal core competencies with externally available capabilities and technologies in an attempt to maximize overall corporate and supply chain competitiveness. To achieve these objectives a company must first determine its current and future capability, technology, and capacity needs, map them against its current capabilities, and then assess whether the resulting gaps can best be filled through internal development, acquisitions, or outside suppliers.

Recommend ways that DIMCO could benefit from leveraging B2B e-Commerce.

I feel the DIMCO could benefit greatly from leveraging B2B e-Commerce. Using e-Commerce is a great online means to increase sales as...