A This will help Rick in another way as he will be able to solve the problem of stock out, specially for the basic raw material ie Aluminum. Raw materials procurement The customization strategy required the presence of many vendors and a high level of inventory in the warehouse. The new need for a reduced variety of raw material and its variety getting reduced will help Rick to achieve the following goals: Negotiate with the suppliers about reducing the lead time to few days instead of weeks V.
Meanwhile, however, countries like Korea and Europe are currently changing industry standards. However by no means do we want to imply that purchasing function at Spartan should be any less strategic.
Spartan should also consider finding an effective logistics route which allows them to reduce costs and they should consider the possibility of consolidating their goods. The new business strategy being formulated for 5 years will give more negotiation power in view of a commitment of a long term relationship.
Spartan Heat Exchangers Inc. One of the strategy changes is to reduce the lead time from 14 to 6 weeks in order to keep up with the competition in the market.
We believe that in order to maximize the SC Department resources in accordance with the new structure the positions and functions of the people with the SC Department will have to be adapted to strengthen the inventory management function of the company.
Material shortages and stock outs in manufacturing operations 7 III. The anticipated increase in business will require more staff so the HR Dept will have to recruit more staff. Actions To Be Taken 2. In this line of thought, we believe that being able to reduce significantly the number of vendors will allow the company to make some considerable advances on vendor development.
Processes should be reviewed to ensure that the SC Department has sufficient access to information in order to achieve this task. Moreover, reducing the purchasing price on raw materials will produce a leverage effect on return on assets.
Earlier the work was based on the specific requirements of the client and it was more of research based but now the focus on research will be less and it will be more on general requirements. Spartan should keep always in mind that many of their customers including some of the key ones decided to opt for standard product design because it brings them more advantages like lower cost and faster delivery.
This will also provide Rick more negotiation power for a ixed vendor base, for his basic raw material as explained later on. Since there will be a less variety of raw materials to purchase and in a larger quantity than previously, due to the new anticipatory approach, the company should aim to establish long term relationship with these fewer vendors.
This means that any given reduction that Spartan can obtain on the procurement price of aluminum will translate in an even higher increase in the return on assets.
It will also give the company a higher negotiation power for better overall conditions, including delivery time, transportation cost, price, quality and budget. Since there will be a less variety of raw materials to purchase and in a larger quantity than previously, due to the new anticipatory approach, the company should aim to establish long term relationship with these fewer vendors.
European firms have begun to focus on standardizing their product lines to a few high-volume products and compete on delivery lead times and price. SCHOOL DeVry University, Keller Graduate School of Management COURSE TITLE ECON TYPE Equilibration is the process of moving between two equilibrium points as a result of some change in DeVry University, Keller Graduate School of Management ECON -.
View Test Prep - Case study CH：Spartan Heat Exchangers Inc. from OPRE at University of Texas, Dallas.
Case Spartan Heat Exchangers Inc. Name: Spyridon Gkrilias,Chao Ma, Xiaoyu Yu,94%(16). View Essay - Case Spartan Heat Exchangers P&SM 14th ed Johnson, Leenders, Flynn from SUPPLY CHA at University of Pune.
Case 2—1 Spartan Heat Exchangers Inc.
On June 10, Rick Coyne. Current State Spartan Heat Exchangers Inc.
is a leading designer and manufacturer of specialized industrial heat transfer equipment for more than 10 years. The company’s primary products are transformer coolers, hydro generator coolers, air-cooled heat exchangers and transformer oil coolers.
Strategic Procurement in Supply Chain Management Planning and Scheduling in Supply Chain Management Review Case 2‐1 “Spartan Heat Exchangers Inc.” Group Case Study Presentations Strategy in Purchasing & Supply Management SCM Concepts Review.
Spartan Heat Exchangers Inc. Essay Sample Spartan, who was a leading designer and manufacturer of specialized industrial heat transfer equipment earns sales revenues of $25M. The company has prided themselves on creating a Make-to-Order system that allows customers the option of customizing their orders to their needs.Supply chain case of spartan heat excahngers inc