> > > Case Opener Case 1.1 We-Fix-lt You work for We-Fix-It, a manufacturer of auto- motive replacement parts. Three of your many suppliers handle 80 percent of your component parts. The company you represent constantly talks about the potential benefits of building al- liances with these three suppliers to improve the supply chain and reduce its total cost. Each sup- plier has served We-Fix-It for years, and each has a one-to three-year agreement to supply compo- nent parts. A sales representative for Super Supply, one of the three component suppliers, calls you. She has two primary issues to discuss: (1) the ineffi- cient unloading dock at your facility and (2) how you could use third-party carriers more effi- ciently and cost effectively. The supplier representative says that the cur- rent layout and design of the unloading dock often delays the carrier, Hopeless Hauling (HH), longer than normal. HH then charges SS for detaining the equipment. The sales representative tells you that unloading inefficiency at We-Fix-It costs SS an es- timated $100,000 per year just in detention charges. She speculates that minor modifications to your dock would alleviate the detention problem and could save at least $100,000 annually. When you contact the other two major suppliers, you find that they agree: delivery to your facility is difficult and inefficient. These two sales representatives esti- mate the cost at $50,000 per year for each company, but neither has hard figures. A contractor estimates that reconfiguring the unloading dock will cost $300,000 The SS sales representative also tells you that larger, less frequent shipments would save transportation costs for We-Fix-It. > > > Case Opener Case 1.1 We-Fix-lt You work for We-Fix-It, a manufacturer of auto- motive replacement parts. Three of your many suppliers handle 80 percent of your component parts. The company you represent constantly talks about the potential benefits of building al- liances with these three suppliers to improve the supply chain and reduce its total cost. Each sup- plier has served We-Fix-It for years, and each has a one-to three-year agreement to supply compo- nent parts. A sales representative for Super Supply, one of the three component suppliers, calls you. She has two primary issues to discuss: (1) the ineffi- cient unloading dock at your facility and (2) how you could use third-party carriers more effi- ciently and cost effectively. The supplier representative says that the cur- rent layout and design of the unloading dock often delays the carrier, Hopeless Hauling (HH), longer than normal. HH then charges SS for detaining the equipment. The sales representative tells you that unloading inefficiency at We-Fix-It costs SS an es- timated $100,000 per year just in detention charges. She speculates that minor modifications to your dock would alleviate the detention problem and could save at least $100,000 annually. When you contact the other two major suppliers, you find that they agree: delivery to your facility is difficult and inefficient. These two sales representatives esti- mate the cost at $50,000 per year for each company, but neither has hard figures. A contractor estimates that reconfiguring the unloading dock will cost $300,000 The SS sales representative also tells you that larger, less frequent shipments would save transportation costs for We-Fix-It