Case study

Gulf Craft (GC) case https://www.youtube.com/watch?v=vwujdMMjU1o

Like most other manufacturers, Gulf Craft (GC) finds that it must spend a huge portion of its revenue on purchases. GC has also found that the better its suppliers understand its end users, the better are both the suppliers product and GCs final product. GC is trying to differentiate its products from the vast number of boats supplied by other companies. Thus, the firm works closely with suppliers to ensure innovation, quality, and timely delivery. GC has done several things to drive down costs while driving up quality, responsiveness, and innovation. First, working on partnering relationships with suppliers ranging from providers of windshields to providers of instrument panel controls, GC has brought timely innovation at reasonable cost to its product. Key vendors are so tightly linked with the company that they meet with designers to discuss material changes to be incorporated into new product designs. Second, the company has joined other boat manufacturers in a purchasing group, to work with suppliers on reducing the costs of large purchases. Third, GC is working with a number of local vendors to supply hardware and fasteners directly to the assembly line on a just-in-time basis. In some of these cases, GC has worked out an arrangement with the vendor so that title does not transfer until parts are used by GC. In other cases, title transfers when items are delivered to the property. This practice drives down total inventory and the costs associated with large-lot delivery. Finally, GC works with a personnel agency to outsource part of the recruiting and screening process for employees. In all these cases, GC is demonstrating innovative approaches to supply-chain management that help the firm and, ultimately, the end user.

Discussion Questions

1. What other techniques might GC use to improve supply-chain management? (4%)

2. What kind of response might members of the supply chain expect from GC in response to their partnering in the supply chain? (3%)

3. Why is supply-chain management important to GC? (4%)