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					•   Andy Koch
•   Andy DeVries
•   Elizabeth Smith
•   David Reynolds
                     Outline

•   Introduction
•   Suppliers
•   Forecasting
•   Manufacturing
•   Inventory
•   Transportation
•   Manugistics
          Deere & Company
• founded in 1837
• world’s leading producer of agricultural
  equipment
• international, 160 countries
• 37,000 employees
• $13 billion in sales last year
            5000 Ten Series
• general utility,
  agriculture,
  landscaping, grounds
  care
• costs about $24,000,
  sells for $30,000
• produced only at
  Augusta plant
           5000 Ten Series
• majority of orders are custom orders
• major competitors are Caterpillar and Case-
  New Holland
Supply Chain
                Suppliers
• 200 different suppliers for one 5000 Ten
  series
• 5 from Asia, 10 from Europe, the rest from
  North America
• total parts cost is $20,000 divided equally
  among the three continents
                Suppliers
• all orders from Asia and Europe sent by
  ship with a 2 week lead time
• orders from North America arrive
  exclusively by truck within 1-3 days
                Forecasting
• production forecasting based on last year’s
  stock sales and customer orders
• numbers are applied to a forecasting
  software called Demand Management
• numbers are constantly updated and an
  MRP is run every Sunday night
• final data is automatically sent to suppliers
            Manufacturing
• plant located in Augusta, GA
• location chosen due to close proximity to
  Charleston, SC and Savannah, GA
• 206,000 square feet used only for
  production of 5000 Ten series
• an average of 60 tractors produced per day
                 Inventory
• only parts inventory, no completed tractors
  are kept at the plant
• completed tractors are only held until a full
  truckload has been produced
• the safety stock level for overseas parts is 2
  weeks, 3 days for North American parts
                Inventory
• completed tractor inventory exists at dealers
• every stock tractor is financed for 6 months
• a stock tractor spends an average of 3
  months at the dealer before being sold
• last year’s ending inventory was 5,569
• last year’s sales 16,003 tractors
             Transportation
• 2 distribution centers located in Rock
  Island, IL and Camp Hill, PA
• all completed tractors delivered in North
  America by truck, all sent overseas by ship
• a full truckload is 4 to 5 tractors
• LTL’s make up less than 3% of shipments
             Transportation
• Deliveries within 200 miles are charged a
  flat rate
• additional mileage is billed per mile
• tractor are sent directly to dealers 75% of
  the time
• the other 25% are sent to a distribution
  center and usually combined with other
  products
              Manugistics
• This proposed system will consolidate trips
  to dealers and suppliers
• Manugistics Transportation Management
  manages planning and load building at
  remote locations
• creates a unique network by integrating the
  inbound/outbound/international logistics
  network
        Proposed logistics situation



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posted:8/7/2012
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