Module 5 case study
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Southern New Hampshire University *
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Course
455
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
docx
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3
Uploaded by GrandDogPerson513
Amber Watson
QSO 455: Integrated Supply Chain
5-3 Case Study
1. Do you believe that Motorola will benefit from an integrated supply chain strategy as opposed
to a traditional strategy? Support your claim.
Some benefits from moving to an Integrated Supply Chain include lower costs, better
relationships, logistic optimization and flexibility.
If we move to an integrated supply chain lower costs can be achieved by all of the
benefits listed above. “Being flexible and getting rid of waste will help to lower costs.
There are other things that can help such as the expertise of your team, the dependability
of equipment and cost sharing. Having a dedicated, knowledgeable team will increase
productivity and improve workflow (Carter, 2020).” Cost sharing is the process of
sharing any major purchases with other competitive companies. An example for Motorola
to use cost sharing would be to share distribution centers and cell towers.
When building better relationships, we have to make sure that goals and needs are
aligned properly. Having these enhanced relationships results in better quality, better
prices and overall, a smaller supply base that is able to shrink costs. “When you reduce
the number of suppliers you work with and synchronize your supply chain systems,
you’ll also reduce your costs. You’ll save money in warehousing, transportation, logistics,
and inventory management (Procurify, 2023).”
When having flexibility, a company can adjust to any situation that may arise. With this,
we can lower costs if these situations happen because we will already have the sources to
adjust rather than being unprepared.
Logistic optimization is defined as a plan that can achieve higher demands quickly and
efficiently. Motorola “improved productivity and continued Motorola’s growth in both
manufacturing output and profitability by redefining the mix of items Motorola would
manufacture and the products to be outsourced (Motorola, 2023).” Facilites were being
used in a more productive way creating lower manufacturing footprints and increased
inventory turnover.
2. Who were the key stakeholders within the Integrated Supply Chain?
The immediately affected stakeholders in the integrated supply chain are all employees.
This includes the suppliers, the businesses selling products, the assembly and warehouse
workers. Once the entire integrated supply chain strategy is put into place, then investors
and customers will see the effects of increased profitability and lower prices.
3. What actions did each stakeholder have to complete in order to make the "new" supply chain
successful?
Employees/ management
Motorola hired Stu Reed as their Vice President to implement the supply chain change. Stu set 6
priorities for the company to follow and build upon. Those include Executive excellence, Deepen
supply chain relationships, Logistic Optimization, Quality renewal, Leveraged IT Solutions, and
Organization efficiency. Executive excellence included developing a system for management to
build performance and productivity. Deep Supplier relationships was the process of aligning
Motorola needs with the best suppliers. This improved their overall supply base, quality, cost and
flexibility. Logistic optimization is the process of making all productions standard in each and
every facility, this will help with efficiency and quality. Quality renewal is the process of
renewing supplier due to having lower defects and returns due to these defects. IT solutions were
implemented to make all businesses one and to create standard management practices throughout
the supply chain. Organization efficiency was the process of taking everything out of the
business that may hurt the new ISC transformation, “Today, the ISC serves the company as one
entity for maximum cost effectiveness – and pursues continuous improvement to enhance its
competitive advantage for Motorola as a key contributor to profitability (Motorola, 2023)”.
Suppliers
When implementing the new ISC, all suppliers needed to be evaluated to see what Motorola
needed from each one to continue to be competitive in their field. Having an increased list of
suppliers makes it difficult to form a relationship to negotiate better prices and manage the
quality and performance of each supplier. This evaluation created specific goals and objectives
for the suppliers that were kept.
Businesses
Prior to implementing and ISC system, all businesses operated as single entities. Once
implemented, the ISC system formed regulations for all businesses to follow for each business to
be connected and follow the same guidelines. This helped quality control to continue this process
and make sure that all guidelines continue to be followed and facilities are examined to ensure
their operation efficiency.
References
Procurify. (2023, October 4).
Supply base optimization: 6 steps to ensure success
.
https://www.procurify.com/blog/how-to-create-a-manageable-supply-base-for-supplier-
optimization/
The benefits of Integrated Supply Chain Management. Carter Logistics. (2020, September 1)
.Retrieved December 02, 2023, from
https://
carter-logistics.com/benefits-integrated-
supply-chain-management
Motorola Case Study - Southern New Hampshire University. (n.d.). Retrieved December 02,
2023, from
http://snhu-
media.snhu.edu/files/courserepository/undergraduate/ qso/qso45
5 /mod 5 case study motorola.pdf
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