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DEP-GARD Case Analysis
Integrated Logistics
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Summary
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1. Story
2 companies:
3 sales man:
Tom Lippet for DEP
Tom O’Leary (former) and Richard Binish (new one) for GARD
DEP is a supplier of GARD
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GARD
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1. Story
The issue:
O’Leary is retiring.
His successor wants to change GARD’s purchasing policy
with new standards.
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1. Story
GARD’s New Guideline:
Qualifying criteria
Order winning criteria
Consequences:
DEP should change its delivery service capabilities within one year. Otherwise,
GARD wouldn’t contract DEP anymore.
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1. Story
DEP’ Supply Chain :
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2. Problems
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2. Problems: Motion Time
Procurement
6 chemical…(생략)
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customers- Providing better service beside of the price competitiveness
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3. Solutions
Limits and requirements
Large initial investment and process changes required
Existing organizational processes and workers adaptation required
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3. Solutions
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3. Solutions: ERP
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Definition: Unified system used to integrate all data and processes of an organization.
Disadvantages:
High costs (implementation, annual license, consultants and experts, working changes, etc.)
Customization is not easy and costly.
Dependent to workers abilities and willingness.
Advantages:
A single integrated system instead of various complex one’s.
Combining, synchronizing and standardizing data of separated applications.
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3. Solutions: Incentives
Procurement is the effective acquisition of goods or services.
Principles:
Purchasing the appropriate good/service (quality, quantity, time, location) to the lowest price.
Idea:
Make some past-
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