Florida Institute of Technology
Production and Operations Management BUS 5461
Wolf Motors expanded its network of auto dealerships to adding its first auto supermarket. The supermarket will carry three different makes of cars at the facility. John Wolf, owner of the dealership, has identified three factors that have contributed to the success of his dealerships. The implementation of “one price-lowest price” concept of pricing and robust after-the sale service to the cars sold. With focus on the service aspect, three components are crucial to providing quality after-the-sale service, well-trained technicians, the latest technologies, and an adequate supply of service parts. Under the current structure each dealership is responsible for ordering and managing its own inventory. The recent growth has brought with it both space and financial resource constraints. John is now wondering what, if anything can be done that would help address some of these concerns.
Wolf motors was established 15 years ago with the purchase of a bankrupt Dodge dealership. The company has grown steadily in size and in reputation. The company had established a solid reputation for servicing, diagnosing, and repairing vehicles correctly in timely manner. This paper will attempt to address the restructuring the relationship with their suppliers, the company’s policies and procedures, as well as provide recommendations while maintaining customer expectations.
Question 1 - What recommendations would you make to John Wolf with respect to structuring the supplier relationship process for the Wolf Motors dealership network?
Wolf Motors might want to consider a centralized supply system. A centralized system will allow the company to consolidate buying decisions for each of their dealerships. They will also be able to consolidate order from all the dealerships which would put the...