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    Master in Business Administration (Mba) (Supply Chain and Logistics) 2021/2022

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    1. Talleres Auto (TA) provides roadside repair and recovery services. It frequently uses starters and alternators obtained from a local distributor. The local distributor obtains these parts from a prime distributor. The prime distributor sources the parts from a remanufacturer who replaces components and tests the products. 2. TA's customers want quick fixes when their cars break down. TA needs fast replacements from the local distributor. However, the remanufacturer focuses on cost savings over speed of delivery. The component supplier also prioritizes low costs. 3. This mismatch between priorities of speed versus cost could cause stockouts and delays in TA providing repair services to customers. This would negatively impact customer service

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    Master in Business Administration (Mba) (Supply Chain and Logistics) 2021/2022

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    1. Talleres Auto (TA) provides roadside repair and recovery services. It frequently uses starters and alternators obtained from a local distributor. The local distributor obtains these parts from a prime distributor. The prime distributor sources the parts from a remanufacturer who replaces components and tests the products. 2. TA's customers want quick fixes when their cars break down. TA needs fast replacements from the local distributor. However, the remanufacturer focuses on cost savings over speed of delivery. The component supplier also prioritizes low costs. 3. This mismatch between priorities of speed versus cost could cause stockouts and delays in TA providing repair services to customers. This would negatively impact customer service

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    1. Talleres Auto (TA) provides roadside repair and recovery services. It frequently uses starters and alternators obtained from a local distributor. The local distributor obtains these parts from a prime distributor. The prime distributor sources the parts from a remanufacturer who replaces components and tests the products. 2. TA's customers want quick fixes when their cars break down. TA needs fast replacements from the local distributor. However, the remanufacturer focuses on cost savings over speed of delivery. The component supplier also prioritizes low costs. 3. This mismatch between priorities of speed versus cost could cause stockouts and delays in TA providing repair services to customers. This would negatively impact customer service

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    59 views6 pages

    Master in Business Administration (Mba) (Supply Chain and Logistics) 2021/2022

    Uploaded by

    Avina
    1. Talleres Auto (TA) provides roadside repair and recovery services. It frequently uses starters and alternators obtained from a local distributor. The local distributor obtains these parts from a prime distributor. The prime distributor sources the parts from a remanufacturer who replaces components and tests the products. 2. TA's customers want quick fixes when their cars break down. TA needs fast replacements from the local distributor. However, the remanufacturer focuses on cost savings over speed of delivery. The component supplier also prioritizes low costs. 3. This mismatch between priorities of speed versus cost could cause stockouts and delays in TA providing repair services to customers. This would negatively impact customer service

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    of 6

    MASTER IN BUSINESS ADMINISTRATION (MBA)

    (SUPPLY CHAIN AND LOGISTICS)


    2021/2022

    SUPPLY CHAIN STRATEGY


    DMS 4103

    INDIVIDUAL ASSIGNMENT 2

    LECTURER
    ASSOC. PROF. TS. ROZITA BINTI HUSAIN

    PREPARED BY
    AVINASHINI SIVA KUMAR (3211435)
    QUESTION 2

    Talleres Auto (TA) is an SME based in Barcelona. TA attends to broken-down


    vehicles, providing a roadside repair and recovery service. Two of the parts that TA
    frequently uses are starters and alternators, which were obtained from a local
    distributor. In turn, the local distributor ordered parts from a prime distributor. Starters
    and alternators were obtained from a remanufacturer, who replaced the windings and
    tested the products using parts bought from a component supplier. A diagram of this
    part of the supply chain is shown in Figure below.

    Most of TA’s customers made ‘distress purchases’ – their car had broken down
    and they wanted it to be fixed quickly. So, TA needed a fast replacement service from
    the local distributor. While the distributors both recognised the need for fast
    replacements, the performance of the purchasing department at the remanufacturer
    was measured on cost savings. Thus, the component supplier thought that the name of
    the game was low cost.

    1. What were the order winners and order qualifiers at TA? 

    Order winners and order qualifiers refers to the process of converting


    internal operational capabilities into criteria that can lead to market success and
    competitive advantage. Order winners relates to delivery speed, quality, product
    design, image and flexibility, which are all competitive advantages that causes
    customers to select an organisation’s services or products. Order qualifiers on
    the other hand, relates to compulsorily demonstrated competitive advantages in
    an organisation for it to be a worthy competitor in a business market.
    As for Talleres Auto, order winners would include fast delivery and reliable
    delivery. Based on the above case study, it has been stated that Talleres Auto do
    have customers calling them for their service, meaning that the organisation
    already has a good customer base. But it was also added on that customers
    want their cars to be as quick as possible. Hence, Talleres Auto has to make
    sure that it is able to provide the quality that the customer look for the most.
    Hence, TA should work on fast delivery of their service to the customer’s spot
    and also have a reliable delivery so that there is no delay of any unwanted issues
    getting in its way. It should keep these both as its motto so it could provide
    services that are better than its competitors and it would naturally attract more
    customers on its way.

    As for order qualifier, it would be quality and cost for Talleres Auto. TA
    would have been aware that they are already many players in the same market
    as it is involved in as roadside repair and recovery service is a common business
    segment. Hence, there must be a few characteristics that are instilled in the
    organisation from its early days in order for its service and products to be
    considered as viable option for its customers. As mentioned earlier, TA should
    provide its services in the best possible quality. For example, employees should
    be trained to always treat their consumers with respect, patience and kindness,
    not forgetting that the products TA purchases for its business should of the best
    quality too. With that being said, it ensures that TA would have returning
    customers. Moving on to the element of costs, TA should set the costs of its
    service and replacement products at a fair and affordable price range. This would
    be of immense importance as if it does not meet the stated criteria, customers
    could easily find different resource that sticks out to them better.
    2. What were the order winners and order qualifiers at the component supplier? 

    As for the component supplier, its cost would be its order winner. As
    stated in the case study, we see that TA needs the products as quick as
    possible. The distributors were aware of this situation and the component
    supplier figure that producing the needed products at a low cost would be placing
    it in a great position of profit for TA to keep on its business from the same
    component supplier. Therefore, the best way of the component supplier could
    achieve this would be via intermittent manufacturing in large batches. This
    product manufacturing would them be done as make to order as in they should
    be made according to what is the most in demand need from their customers.
    The component supplier should manufacture the products in large batches so
    that it could save money on its production and also provide a great deal to its
    buyers.

    Moving on to its order qualifiers, it would be good quality of products,


    reliable delivery and fast delivery for the component supplier. To be well noticed
    in its business, the component supplier would have all the points that have been
    listed above. It should make sure that even if it is applying intermittent production
    practices in its business, the organisation would have to make sure that the
    products are at its best quality. This would be accomplished with quality
    checkpoints at each section of its production process. Besides that, the
    component supplier would be aware of its customers who would expect a speed
    delivery from them. Hence it would have to make sure that the delivery of
    components to Talleres Auto as its customer should be both reliable and fast. As
    that is the main focus of Talleres Auto in its business and the supply chain of the
    products should be in par with the seriousness of speed.
    3. What impact on customer service was this mismatch likely to cause?

    By now it is clear that both order winners and order qualifiers are
    significant in supply chain flows. In fact, they both share a common trait that is
    entirely dependent on a perspective that is unique to each consumer. But it could
    be influenced by the communication between with supplier experience and
    personnel and they are uncontrollable. Therefore, when mismatch happens
    between these two, it would impact customer service in a way where it would
    lead to the risk where the supplier or the Talleres Auto run out of inventories due
    to the large deliveries that are irregular. With the issues arising with regards of
    stock issues, it would lead to the repair services to the to be delayed. This in the
    long run could cause distress among the customers and they could easily opt to
    different place to deal with their situation instead of getting to TA. This would
    cause the customers to have an unhappy business and it could cause a chain
    reaction all the way in the supply chain.

    REFERENCES

    Harrison, A., & van Hoek, R. I. (2008). Logistics Management and Strategy: Competing
    Through the Supply Chain. Prentice Hall Financial Times.

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