Early Supplier Integration In The Design of Skid-Steer Loader

Scott Nolan’s Problem:

(a) Identify and justify which suppliers to integrate in the product development phase.

Phase I Phase II Phase III Phase IV Phase V

Concept Applied Pre Development Manufacturing

Development Research Development

Engineers R&D Engineers Engineers Manufacturers

Supply Manufacturer Manufacturer Manufacturer Distributors

Management
Managers Importers
Exporters
Manufacturer

(b) Specify how to structure the interactions with these chosen suppliers.

➢ Providing information to suppliers - scheduling, planning, shipment notices and sales

forecasting. This enables a firm to improve inventory management and replenishment
planning which, in turn, helps the firm reduce operating costs, transaction risks and
coordination costs and improve productivity.
➢ Early integration of suppliers from the start of production and manufacturing of the
product - trust integration plan through information sharing, process synchronisation
and strategic alignment because they will be collaborating with the firm for the long term
and it is important that they share information and knowledge throughout the process.
➢ Request feedback at every step - since the process will require revisions, it is important to
request feedback and ask for their input at every stage of the process to help improve the
plan and increase supplier buy-in.
➢ Set regular reviews and training with the supplier - understanding and compliance is
central to success. Set up monthly reviews in early stages, allow more feedback,
adjustments, and make additional training resources when they are required.
Deere & Company’s Problem:

Fundamental order-winning criteria in such areas as:

Considered as a Competitive Advantage Not Considered as a Competitive Advantage

Product Delivery Price

Product Features
Product Range

• Product Delivery: I considered this as a competitive advantage because delivery speed is one of
the many factors of order-winners. With this customers will be satisfied with the delivery process
and might be able to repeat purchasing your product.

• Product Features: this is a competitive advantage because product design and reliability is
present in order-winning criteria which is one of the things that customers take into
considerations when purchasing a product.

• Product Range: this is an advantage to better serve the customers, with this, customers have a
wide range of variants to choose from depending on what type or size of loader they need.

• Price: I don’t consider this as a competitive advantage because it is not a factor in order-
winning fundamentals and i think not the main reason why customers purchase a company’s
product especially when it comes to construction equipment.