Road Machinery Manufacturing Company

1646 words 7 pages
Supply Chain Case Study

Case Study 1 Report
Prepared By:
Vineeth Jojo, ID-991292949

Submitted To: Scott Hadley
Submission Date: 16/01/2013

Road Machinery Manufacturing Company
The role of the responder: Ray Wilkins (Materials Manager)
RMM is a privately owned company that manufactures construction equipment, adding the functional body and operational control systems to a customer-provided chassis and front end. RMM has their major share of business in North America and United States and are planning to increase its market share in North America by 25 per cent in the next five years and also to expand to South America and Mexico.
A financial crunch led the company to shift the courier services from QPS to
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* They do not provide flexibility to payment even in case of emergency.
Alternative #2 Ask the suppliers to find their find their own transportation methods
This option would ask the suppliers to find their own ways of transporting their goods to RMM and a small clause added to the contract saying the payment won’t be paid upfront but within a time span of 30-60 days.
* This would take their tension of transportation issues. * This would also give them flexibility over payment. * As suppliers are allowed to choose their own courier service that resolves the reluctance issue as well.
* As most of the suppliers prefer QPS the transportation cost would be still high compared to going with Roomis. * Also the investment for installing Roomis software and hardware would be sunk cost. * Company striving through financial downturn would not consider this as an option to reduce cost of operation.
Alternative #3 Continue with Roomis with certain changes in terms and conduct of transportation
This option suggests RMM to go forward with Roomis but with certain changes in the contract. The entire transportation within Canada will be done by Roomis. As for their partner/ally Natex, RMM will go forward with dealing with QPS for cross border transportation till Roomis finds a remedy or device a method to ship goods on time.
* Roomis provide better flexibility over payment


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