1. John Wolf should build a good relationship and trust with his suppliers so that they may share information on inventory levels. With the use of technology Wolf can share information within the Wolf Motors dealership network. He can use SAP, Enterprise Resource Planning to share and organize information and data within the company. By tracking inventory within the company he will know where the inventory is and how much is available at all time. This will cut cost and increase speed because if a part is available at one of his dealerships it may be faster and less costly to get it than waiting for the supplier to fill the order.
EDI can also help him keep his suppliers informed of the inventory on hand, so that if the company is running low they will send it before they run out. This program will automatically place order when the inventory is needed. This will cut costs since he will only get inventory when he needs it without overstocking, which will also give him more space for other parts. 2. Purchasing policies and procedures will differ as the dealership purchases different types of service parts and material because some parts might take longer and be more expensive, since they have to come from a specific supplier.
Other products, such as oil or lubricant, can easily come from any supplier. Wolf should consider purchasing these items from a supplier that is close to his dealership so that it costs less to transport and the products arrive faster. If the supplier is close, then Wolf will not have to have a very high inventory, since he will be confident that the moment he needs a part, the supplier will transport it to him fast. Choosing a supplier that offers a great variety of parts will also be cost efficient since you will be able to have one supplier taking care of all your needs. 3.
Supply chain management concepts can help Wolf reduce investment and space requirements while maintaining adequate service levels. With effective supply-chain management, Wolf Motors can streamline the acquisition processes and maintain efficient inventory control while reducing unnecessary inventory warehousing. Wolf would need to analyze inventory turnover rates to identify the appropriate range of supplies required to be on hand in each category. Wolf would need to make adjustments inventory levels to accommodate demands during peak seasons and promotional marketing periods.
