The numbers of suppliers that are involved in the manufacturing of the machine are dependent on the quality of the goods and services that they are offering. In the 100 potential suppliers, the adequate amount of suppliers in the earliest stages of production is 30. The reason that the number is so high is to determine who the best fit is for the company in the long run. To determine the suppliers that the company should work with, the sections of the company that should be involved include; the acquisitions, engineering section, manufacturing, and the quality assessment segment. These are the sections that should be involved in deciding the number of suppliers that the company will remain in the later stages of development.
In integration of supply in the earlier stages of the skid-steer product, trade-off means that a quality of a commodity will have to be foregone in favor of another. In this scenario, there is no trade-off. The inclusion of multiple suppliers means that the business will have more variety and as a result initialize supplier diversification.
Weekly meetings are the best way to facilitate communication within the organization. This will make it easier to monitor the progress of the project. If failure occurs anywhere in the process, weekly meetings will find a way to resolve the matter quickly. Breakthroughs will also be monitored and ways to maintain success implemented.
The reasons that might make omitting a supplier into the supply chain regardless of the criteria’s suggestion is if there are better suppliers who will serve the company better than the said supplier. If the cost of his services is higher or his scheduling is not in tandem with the company’s schedule, the supplier might have to be dropped from the supply chain.
In choosing the suppliers that are to be in the supply chain, the company has several hurdles to overcome. The first is to determine the means by which to pay them. Another challenge is determining the potential cost that can be incurred when dealing with the suppliers. Some include incurred tax, transportation costs etcetera. The final hurdle that Deere Company has to overcome when choosing suppliers is the possible risks that are involved. Some of the risks include timely payment, the quality of the goods that are delivered to the company, and the legal measures to be taken if there is a breach of contract.