NAVEEN JINDAL SCHOOL OF MANAGEMENT – UT DALLAS
DEP/GARD Case study
GROUP 13
MIS 6369/OPRE 6369 – Supply chain Software with SAP
Submitted By,
Aravind Selvan
Purnima Samal
Krishna Vamsi Senapathi
Venkata Sai Jyothi Swaroop Sathuluri
Dorai Aadhavan Shanmugasundaram
1. Diagram the DEP/GARD Supply chain. Your diagram should include GARD’s customer and DEP’s
Supplier. (swaroop)
2. What parts of the Supply chain (i.e. supplier, manufaturing, etc) are performing well and what parts
are not performing well? Please state the rationale for your statement. (Vamsi)
Parts that are performing well:
The production and transportation aspects of the supply chain between DEP and GARD are
functioning efficiently. DEP's continuous investment in cutting-edge technology and equipment
enables swift transitions in production processes, resulting in effective manufacturing of a diverse
range of products with satisfactory quality. Moreover, DEP's decision to diversify its delivery options
for clients allows goods to be delivered to GARD in as few as three days after being prepared at the
warehouse, with the longest-case scenario involving a shipment delay until Monday if ready on
Friday.
Parts that are not performing well:
Two aspects of the supply chain that are not performing well are suppliers and warehouses.
Approximately 28% of the time, suppliers achieve a fill rate of 95% or lower, while GARD expects DEP
to consistently maintain a minimum fill rate of 95%, which will soon increase to 96%. DEP should
expect its suppliers to meet the same fill rate standards that are required of them, rather than just a
minimum of 92%. Additionally, DEP's products spend an extra 36 days in the warehouse before being
shipped to customers, which is an excessive amount of time.
3. Compare and contrast in a table the relationship changes, expectations and performance
measurements GARD currently uses for its suppliers and what it will use in the future? (Vamsi)
GARD's supplier relationships are shifting from long-term partnerships based on mutual trust to short-
term agreements (one-year contracts) that require constant demonstration of competence for renewal.
Presently, suppliers like DEP must meet relatively relaxed criteria, such as providing excellent quality and
delivering within 10 business days (+/- 2). In the future, GARD will not only expect high quality but also
tighten the delivery window to (+/-) 1 day, eventually eliminating the window altogether in the following
year. The performance measures include a minimum service level of 95%, which will increase to 96% this
year and further to 96.5% the next year.
4. Using the primary DEP Suppliers (60% of business) , what is the minimum lead time for the supply chain
chain diagrammed in question 1 upto and including the DEP distribution process? Your minimum cycle
time should assume DEP will use its safety stock of compounds. What is the maximum cycle time for
the supply chain diagrammed in question 1 up to and including the GARD distribution process? Your
maximum time should assume DEP has insufficient supplies for all compounds . Finally assume DEP
Production plant and warehouse work Monday through Friday only. Show how you arrived at your
answers.( Purnima + swaroop)
5. What strategies should DEP deploy so it can keep its business relationship with GARD? State the
rationale for your recommendations. Be convincing.( Aravind)
6. Should DEP attempt to implement JIT and Lean again? State the rationale for your conclusion. Be
convincing.
Implementing Just in Time (JIT) in DEP is a benefit for the company as the delivery times depend
on the sending out orders, backup stock holding, and the waiting time of demand from the
customers. Lean is advantageous since it will decrease the amount of the that the unproductive
team spends in the warehouse.
JIT is still reliable without the pull. Before the Implementation of JIT again the company must
ensure from the supplier for a quicker and more reliable delivery. The point that the initial
attempts were unsuccessful shows that lean/JIT cannot tolerate a shortage of parts.
In the absence of the Pull, JIT must be used. To ensure quicker delivery, it is essential to redesign
the providers before they try to re-implement them. Lean/JIT cannot accept a partial failure, as
the initial attempt demonstrates.
