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Supply Chain Management At Regal Marine

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Regal Marine. Paul Kuck started the company in 1969 with $60,000 ... Regal works with an Orlando personnel agency to outsource part of recruiting & screening. ... – PowerPoint PPT presentation

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Title: Supply Chain Management At Regal Marine


1
Supply Chain Management At Regal Marine
  • By
  • Burcu KÖR Ebru POLAT

2
Regal Marine
  • Paul Kuck started the company in 1969 with
    60,000
  • Estimate its value at nearly 40 million
  • A productive workforce is needed to meet the
    demand for the companys lines
  • is one of U.S.s 10 largest power-boat
    manufacturers.

3
Regal Marine
  • is luxury performance boats to customers
    worldwide
  • began exporting its boats in 1976, now sells to
    customers in 45 nations.
  • manufactured and sold more than 50,000 boats
    including luxury sport boats, sport cruisers and
    yachts.

4
Regal Marine
  • Strategy of differentiation constant innovation,
    unique features, high quality.
  • the prestigious IMTEC innovation award
  • For inhouse quality CAD, high quality molds,
    controls by defect charts rigorous visual
    inspection.
  • Parts supplied are as much important.
  • Suppliers and relations with them is crucial

5
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.

6
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

7
American Boatbuilder Association
  • a coalition of 12 leading independent US boat
    manufacturers
  • approximately 5,000 employees in US, with 15
    facilities in 9 states
  • produce more than 15 of all the boats above 16'
    built in America
  • aim ? to obtain the highest quality materials at
    the lowest possible cost.

8
Mission Statement and Goals
  • Mission Statement
  • Through the collective buying power of its'
    members, we will strive to purchase high quality
    materials at the lowest cost of any boat building
    entity in the United States. We will organize as
    necessary to bring the united voice of the
    independent builder to outside influences such as
    Suppliers, government, and industry associations.

9
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

10
Benefits of ABA
  • savings from pooled purchasing and technical
    services for members
  • reduced transaction costs for members
  • better boat pricing for the buying public
  • increased sales and product turns for
    Manufacturers and Suppliers
  • a stable source of volume purchasing for Suppliers

11
What is expected from suppliers ?
  • To be full partners
  • Share market research jointly develop products
    and options.
  • Select primarily for product development skills.
  • Modular processes that lend themselves to mass
    customization.
  • Minimize inventory in the chain to avoid
    obsolescence.
  • Invest to reduce development lead time.
  • Use modular design to postpone product
    differentiation for as long as possible

12
What does suppliers expect from Regal ?
  • To be readily available and responsiveness
  • To become trustworthy
  • Instant access to services and information any
    time
  • To gather data quickly to deal with changing
    requirements
  • Consistent information systems to reach the data

13
Other Techniques
  • Downstream retail channel relationships
  • -retail sales forecasts for production
    planning
  • -sales information to find out which boats are
    fast-sellers.
  • Work with distribution network
  • -boost sales more production of higher
    margin products.

14
Challenges to strengthening relationship with
retailers
  • communication obstacles
  • trust issues
  • information systems obstacles
  • shortage of human resources

15
Outcomes
  • With suppliers help
  • a product line of 22 boats ranging from
  • 14,000 three passenger Rush to the
  • 500,000 42-foot Commodore Yacht.
  • reduced daily on hand inventory to 22
  • days

16
Results of Effective Supply Chain Management
  • inventory turnover of 16.8 times/year
  • eliminated 40 non-value added man hours
  • Through economies of scale in procurement,
  • Regal is able to navigate against billion dolar
    competitor Brunswick.

17
AIM Supply (Regal Supplier)
  • provides MRO and production supplies to customers
    in the marine, industrial and automotive
    service/fleet industries
  • distribution centers in 10 locations nationwide
  • Goal to make customers more successful by
  • - supplying them with high-quality products at
    reasonable prices
  • - developing reporting systems to show the
    components of their spend
  • - identifying opportunities to improve their
    processes
  • - eliminating waste
  • - keeping our customers competitive

18
Martin Clement(director of materials at Regal)
says
  • our most strategically aligned supplier.
    Theyre helping us drive out costs. By helping us
    drive out costs, it helps us add value to our
    marketplace

19
Boat Tree (Regal dealer)
  • Orlando-based boat store
  • the largest Regal dealer in the world for 12
    consecutive years
  • sells about 400 of Regal boats annually
  • Regal ? 40 percent of its entire business

20
Joe Pozo (president of the Boat Tree) says that
  • "Our success with selling Regal boats is a
    direct result of the high quality of their
    product and their excellent customer service.
    Nobody stands behind their product like Regal."

21
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