John Wolf Case Study Essay

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1. What recommendations would you make to John Wolf with respect to structuring the supplier relationship process for the Wolf Motors dealership network?
First, I would recommend that WM engages in centralized buying for as many products as possible. By purchasing larger quantities and varieties of goods from fewer sources, WM can increase its purchasing power. This will allow the company to negotiate lower parts and materials costs with its supplier, which it can then pass along to its customers in the form of lower prices.
Second, I would recommend that WM utilize electronic data interchange (EDI) technology to ease communication efforts between its individual dealerships and its various suppliers. This will allow the company to exchange …show more content…

How might purchasing policies and procedures differ as the dealerships purchase different types of service parts and materials (for example, lubricants versus genuine GM parts)?
As stated above, I recommend that WM reduce the number of suppliers and engage in centralized buying for as many products as possible. By limiting its number of suppliers, WM will be able to standardize more of its purchasing policies and procedures across the various dealerships and among its vendors. Also, by reducing the number of suppliers involved, WM will be able to focus more on souring products from vendors that meet the company’s price, quality and delivery standards, which will help ensure better after-sale customer service and satisfaction.
However, it is important to note that even with fewer vendors, WM’s purchasing policies and procedures will differ based on the size and sophistication of the supplier involved in the transaction. For larger suppliers like GM, WM will want to rely more heavily on detailed contracts that clearly stipulate the expectations of the company and the implications that will result from unfulfilled expectations. For smaller suppliers, the company will want to soften the dialog used in its contracts to avoid scaring potential vendors away. By using less threatening language, the company will be able to build trust with these smaller vendors and ensure their future cooperation in the timely delivery of quality

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