Deere Skid Loader Case Study

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Deere Skid Loader Case Study Supplier Selection Criteria Schroeder, Goldstein & Rungtusanatham (2013) explain that the Deere and Company has constructed a project to expand their share of the skid loader niche market segment by developing an in-house designed skid loader product family. This will replace their current offering of selling a competitors model branded as a Deere. This move will allow Deere to achieve several key objectives including increase market share, better product delivery times, increase profitability and have better control of product features and models. They have marked $35 million dollars of their capital budget as part of this project including a new facility in Knoxville, TN to assemble this new product family. Scott Nolan has been hired and tasked with first selecting the suppliers to procure required components and sub assemblies and also to integrate the chosen suppliers into the operations functions. Scott must first identify the metrics needed in order to compare various suppliers and select the right supplier based on these criteria. Arnold, Chapman & Clive (2012) offer some valuable insight on various factors involved with selecting the proper supplier for a specific product. The four top criteria that would apply to the skid loader product are technical ability, cost, quality and delivery. Technical ability: With highly engineered and critical specifications, the first and foremost supplier attribute that Scott needs to quantify for each supplier is their technical ability (or lack thereof) for each and every supplier. Arnold et. al. (2012) suggest that a qualified supplier must have the experience and knowledge to not only manufacturer the parts or assemblies but also be able to offer assistance in design or improvements. This supplier must have the competence to manufacture the needed components to the specifications. A

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