Case 2-1 SpartanHeat Exchangers - Case 2-1 Spartan Heat Exchangers Situation Multiple vendors for raw material supply o More than 350 vendors for raw

Case 2-1 SpartanHeat Exchangers - Case 2-1 Spartan Heat...

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Case 2-1: Spartan Heat Exchangers Situation: Multiple vendors for raw material supply o More than 350 vendors for raw materials due to customization strategy implemented by company before o Lead times range from a few days to six weeks, which can not be simply controlled The company facing increased competition in the heat exchanger industry over the past decades. o Korean companies provide lower price o European companies, with standardize assembly-lines, provide shorter delivery lead time and lower price o Some key customers would prefer lower cost and faster delivery rather than custom design The company authorize to form a new five-year business strategy o Aiming to standardization of all product lines o Reducing customization to three or four basic categories o The sales department would not accept orders for specialized designs any more o Aiming to reduce delivery lead time from 14 weeks to 6 weeks o Reducing the total costs BASIC ISSUES; (note - tie to elements from textbook) 1. Strategy implementation. (Product-focused; standardized assembly lines)

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