Module 5 case study

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Southern New Hampshire University *

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455

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Industrial Engineering

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Dec 6, 2023

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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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