Supply Chain Management at Regal Marine Case Study Notes Read the case and watch the case video carefully at first, and write-up case study notes, use your

Supply Chain Management at Regal Marine Case Study Notes Read the case and watch the case video carefully at first, and write-up case study notes, use your own words, it needs 1page and includes the information below(may need 3 paragraphs). Notes should cover the following three key points (at a minimum).
1. State the mission of the company discussed in the case
2. Identify a key operational challenge at the company
3. Make a high-level strategic recommendation to address that challenge
Watch the case video for more info:
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The case name is: Supply Chain Management at Regal Marine 11.7 The grocery industry has an annual inventory
turnover of about 14 times. Organic Grocers, Inc. had a cost
of goods sold last year of $10.5 million; its average inventory
was $1.0 million. What was Organic Grocers’ inventory turno-
ver, and how does that performance compare with that of the
industry?
..11.8 Mattress Wholesalers, Inc., is constantly trying to
reduce inventory in its supply chain. Last year, cost of goods
sold was $7.5 million and inventory was $1.5 million. This year,
cost of goods sold is $8.6 million and inventory investment is
$1.6 million.
a) What were the weeks of supply last year?
b) What are the weeks of supply this year?
c) Is Mattress Wholesalers making progress in its inventory-
reduction effort?
Tyler Olson/Fotolia
CASE STUDIES
Darden’s Global Supply Chains
Video Case
DI
Fourth, Darden’s worldwide seafood supply chain is the final
link. Here Darden has developed independent suppliers of salmon,
shrimp, tilapia, scallops, and other fresh fish that are source
inspected by Darden’s overseas representatives to ensure quality.
These fresh products are flown to the U.S. and shipped to 16 dis-
tributors, with 22 locations, for quick delivery to the restaurants.
With suppliers in 35 countries, Darden must be on the cutting
edge when it comes to collaboration, partnering, communication,
and food safety. It does this with heavy travel schedules for purchas-
ing and quality control personnel, native-speaking employees onsite,
and aggressive communication. Communication is a critical ele-
ment; Darden tries to develop as much forecasting transparency
as possible. “Point of sale (POS) terminals,” says Lawrence, “feed
actual sales every night to suppliers.
Darden Restaurants (subject of the Global Company Profile at
the beginning of this chapter), owner of popular brands such as
Olive Garden and LongHorn Steakhouse, requires unique supply
chains to serve more than 300 million meals annually. Darden’s
strategy is operations excellence, and Senior VP Jim Lawrence’s
task is to ensure competitive advantage via Darden’s supply
chains. For a firm with purchases exceeding $1.8 billion, manag-
ing the supply chains is a complex and challenging task.
Darden, like other casual dining restaurants, has unique sup-
ply chains that reflect its menu options. Darden’s supply chains
are rather shallow, often having just one tier of suppliers. But it
has four distinct supply chains.
First, “smallware” is a restaurant industry term for items such
as linens, dishes, tableware and kitchenware, and silverware.
These are purchased, with Darden taking title as they are received
at the Darden Direct Distribution (DDD) warehouse in Orlando,
Florida. From this single warehouse, smallware items are shipped
via common carrier (trucking companies) to Olive Garden,
Bahama Breeze, and Seasons 52 restaurants.
Second, frozen, dry, and canned food products are handled eco-
nomically by Darden’s 11 distribution centers in North America,
which are managed by major U.S. food distributors, such as
MBM, Maines, and Sygma. This is Darden’s second supply line.
Third, the fresh food supply chain (not frozen and not canned),
where product life is measured in days, includes dairy products,
produce, and meat. This supply chain is B2B, where restaurant
managers directly place orders with a preselected group of inde-
pendent suppliers.
Discussion Questions*
1. What are the advantages of each of Darden’s four supply
chains?
2. What are the complications of having four supply chains?
3. Where would you expect ownership/title to change in each of
Darden’s four supply chains?
4. How do Darden’s four supply chains compare with those of
other firms, such as Dell or an automobile manufacturer? Why
do the differences exist, and how are they addressed?
*You may wish to view the video that accompanies this case before
answering the questions.
Supply Chain Management at Regal Marine
Video Case o
Like most other manufacturers, Regal Marine finds that it must
spend a huge portion of its revenue on purchases. Regal has also
found that the better its suppliers understand its end users, the
better are both the supplier’s product and Regal’s final product.
As one of the 10 largest U.S. power boat manufacturers, Regal is
trying to differentiate its products from the vast number of boats
supplied by 300 other companies. Thus, the firm works closely
with suppliers to ensure innovation, quality, and timely delivery.
Regal has done a number of things to drive down costs while
driving up quality, responsiveness, and innovation. First, work-
ing on partnering relationships with suppliers ranging from pro-
viders of windshields to providers of instrument panel controls.
Regal has brought timely innovation at reasonable cost to its
product. Key vendors are so tightly linked with the company that
they meet with designers to discuss material changes to be incor-
porated into new product designs.
chain management that help the firm and, ultimately, the end user.
The Global Company Profile featuring Regal Marine (which opens
Chapter 5) provides further background on Regal’s operations.
Second, the company has joined about 15 other boat manufac-
turers in a purchasing group, known as American Boat Builders
Association, to work with suppliers on reducing the costs of large
purchases. Third, Regal is working with a number of local ven-
dors to supply hardware and fasteners directly to the assembly line
on a just-in-time basis. In some of these cases, Regal has worked
out an arrangement with the vendor so that title does not transfer
until parts are used by Regal. In other cases, title transfers when
items are delivered to the property. This practice drives down
total inventory and the costs associated with large-lot delivery.
Finally, Regal works with a personnel agency to outsource part
of the recruiting and screening process for employees. In all these
cases, Regal is demonstrating innovative approaches to supply
Discussion Questions*
1. What other techniques might Regal use to improve supply
chain management?
2. What kind of response might members of the supply chain expect
from Regal because of their “partnering” in the supply chain?
3. Why is supply chain management important to Regal?
*You may wish to view the video that accompanies this case before
answering the questions.
Arnold Palmer Hospital’s Supply Chain
Video Case
a goal of better medicine while achieving economic targets. For
instance, the heart pacemaker negotiation by the cardiology sub-
committee allowed for the standardization to two manufacturers,
with annual savings of $2 million for just this one product.
Arnold Palmer Hospital is also able to develop custom prod-
ucts that require collaboration down to the third tier of the sup-
ply chain. This is the case with custom packs that are used in the
operating room. The custom packs are delivered by a distributor,
McKesson General Medical, but assembled by a pack company
that uses materials the hospital wanted purchased from specific
manufacturers. The HPA allows Arnold Palmer Hospital to be
creative in this way. With major cost savings, standardization,
blanket purchase orders, long-term contracts, and more control of
product development, the benefits to the hospital are substantial.
Arnold Palmer Hospital, one of the nation’s top hospitals dedi-
cated to serving women and children, is a large business with over
2,000 employees working in a 431-bed facility totaling 676,000
square feet in Orlando, Florida. Like many other hospitals, and
other companies, Arnold Palmer Hospital had been a long-time
member of a large buying group, one servicing 900 members.
But the group did have a few limitations. For example, it might
change suppliers for a particular product every year (based on
a new lower-cost bidder) or stock only a product that was not
familiar to the physicians at Arnold Palmer Hospital. The buying
group was also not able to negotiate contracts with local manu-
facturers to secure the best pricing.
So in 2003, Arnold Palmer Hospital, together with seven
other partner hospitals in central Florida, formed its own much
smaller, but still powerful (with $200 million in annual purchases)
Healthcare Purchasing Alliance (HPA) corporation. The new alli-
ance saved the HPA members $7 million in its first year with two
main changes. First, it was structured and staffed to ensure that
the bulk of the savings associated with its contracting efforts went
to its eight members. Second, it struck even better deals with ven-
dors by guaranteeing a committed volume and signing not 1-year
deals but 3- to 5-year contracts. “Even with a new internal cost of
$400,000 to run HPA, the savings and ability to contract for what
our member hospitals really want makes the deal a winner,” says
George DeLong, head of HPA.
Effective supply chain management in manufacturing often
focuses on development of new product innovations and efficiency
through buyer-vendor collaboration. However, the approach in
a service industry has a slightly different emphasis. At Arnold
Palmer Hospital, supply chain opportunities often manifest them-
selves through the Medical Economic Outcomes Committee. This
committee (and its subcommittees) consists of users (including the
medical and nursing staff) who evaluate purchase options with
Discussion Questions*
1. How does this supply chain differ from that in a manufacturing
firm?
2. What are the constraints on making decisions based on eco-
nomics alone at Arnold Palmer Hospital?
3. What role do doctors and nurses play in supply chain deci-
sions in a hospital? How is this participation handled at Arnold
Palmer Hospital?
4. Doctor Smith just returned from the Annual Physician’s
Orthopedic Conference, where she saw a new hip joint
replacement demonstrated. She decides she wants to start
using the replacement joint at Arnold Palmer Hospital. What
process will Dr. Smith have to go through at the hospital to
introduce this new product into the supply chain for future
surgical use?
*You may wish to view the video that accompanies this case before
answering these questions.
Endnote
1. Inventory quantities often fluctuate wildly, and various types
of inventory exist (e.g., raw material; work-in-process; finished
goods, and maintenance, repair, and operating supplies [MRO]).
Therefore, care must be taken when using inventory values; they
may reflect more than just supply chain performance.

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