Chain Management at Durham International Manufacturing Company (DIMCO) Case



Table of Contents

Integration Efforts3

Benefit from Leveraging B2B e-Commerce3

Improving Relationships with Suppliers4

Eliminating Waste in Supply Chain5

Chain Management at Durham International Manufacturing Company (DIMCO) Case

Integration Efforts

The integrations efforts should start with distributor side but it must be ultimately extended to supplier side. The distributor side in this case is very important, since the consumer electronics is usually purchased from retailers and they are many in numbers, it is very important to have accurate information. An effect known as 'Bullwhip Effect' is occurred, which is a direct consequence of incorrect information at several levels of supply chain regarding replenishment order (Reid, & Sanders, 2010). The industry is also growing for Durham International Manufacturing Company (DIMCO). So the company should extend its integration forward and having greater control over distribution channels will leverage its success. The company should also extend its integration efforts backwards as well because the business is most likely to grow in future and having greater control over suppliers can mean assurance of quality and reduction of cost. Furthermore, the integration with suppliers results in leaner manufacturing processes (So, & Sun, 2010). The leaner manufacturing processes which concerns with entire operation of the supply chain (Oliver et al., 1993). These leaner manufacturing processes are more responsive to changes in demand and bring increased competitive strength to the incumbent firm (Oliver et al., 1993; Ryan, 2001).

Benefit from Leveraging B2B e-Commerce

The use of internet and computer to transact business is referred to as e-commerce, and it includes the electronic data interchange, intranets, and extranets. The Business to Business commerce or B2B can be used by DIMCO to facilitate its business in terms of efficiency, better communication and reducing cost. B2B ecommerce will allow the company to better communicate and hence lower the procurement cost of administration. Also, the DIMCO is involved in acquiring its supplies form suppliers spread globally; B2B ecommerce significantly reduced the costs of access to global suppliers. As the internet is reducing the monopoly of many businesses, it is becoming increasingly easier to match the prices and get the best deal with less and less investment of time and efforts. The B2B ecommerce also facilitates in the development and designing of the product and reduces the time for innovation idea to marketable product time (Downing, 2006).

Improving Relationships with Suppliers

Relationships are always important whether they are with customers, employees ...