Why is Supply Chain Management Important to Regal • competes in a multibillion dollar industry • Need to differentiate its products. • Differentiation through quality, innovation, unique features, up to date technology, responsiveness • Final product quality is bound to suppliers’ products used. • Huge portion of revenue spent on purchases.
Goals • To focus on improving the quality, safety, value, and environmental impact of our products • To share knowledge and best practices among our members • To promote cost-effective solutions and other mandated policies and guidelines • To provide a member forum for the consideration of issues that affect the Marine Industry • To provide a member interface with other industry organizations for improving the Marine Industry
Supply Chain Issues • Partner with upstream suppliers of direct materials and components • Suppliers are involved into the product design process • A number of local vendors supply hardware and fasteners to the assembly line in JIT • Regal works with an Orlando personnel agency to outsource part of recruiting & screening. • Participation with other boat manufacturers in a buying group called the American Boat Builders Association
Results of Effective Supply Chain Management • reduced daily on hand inventory to 22 days • inventory turnover of 16.8 times/year • constantly updating their suppliers • discuss material innovations with suppliers • eliminated 40 non-value added man hours • all because of effective supply chain management • Through economies of scale in procurement, Regal is able to navigate against billion dolar competitor Brunswick.
Additional information • http://www.snc.edu/socsci/chair/333/bricks/Location.html • http://126.96.36.199/search?q=cache:hFR1j17Xn_8J:www.coba.unt.edu/acct/cost12ism/cost12ism_20.pdf+%22regal+marine+supply+chain+management&hl=es&ct=clnk&cd=2&gl=at