Regal Marine Case Study Ppt

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Presentation on theme: "Supply chain management in Regal Marine"— Presentation transcript:

1 Supply chain management in Regal Marine
Some concepts:Purchasing: many firms >50% of the sales dollars on purchasing materials needed to make products. In Regal Marine, 60% of sales are for purchasesSupply Chain management: more than seeking lowest prices, it is the careful management of upstream activities that procure materials, transform and enter products in the factory, and deliver products to customers.

2 Supply Chain management
Why is it so important for Regal Marine?Cost controlReduce their daily raw material inventory to about 22 days.16.8 times a yearthey do daily, monthly and annual production forecast for suppliers distribution lists, helping suppliers reduce their coston time deliveries: exactly what we need when we need itdeliver on a weekly basis for use that particular week

3 Techniques (1) Partnering:
Key partnership suppliers which have shown a commitment to quality, product availability, reducing total cost, helping us mantain low inventory levelsExpects from suppliers:continous improvement processinnovation, technology and developmentwe be part of the processwe provide their avenue for getting their products in, getting them testedfirst class distributor, best in class products

4 Techniques (2) 2. Buying group with other boat manufacturers
American boat builder's association: ABA combining volumes of the 12 independent boat companies across united statesto achieve higher purchase quantities, enable to buy at better volume levelspricing advantages

5 Techniques (3) Key vendors
Meet with designers to discuss material innovationSupply items directly to the assembly line so no inventory is mantained (ownership or title to the items not cast to regal marine until the boat is finished, this delay of title passage is a technique to reduce cost)Supplier comes on a weekly basis, take orders form production line, and two days later deliver orders right back to roduction line. This has elliminated non-value added man-hours.Network of distributors to properly display boats at boatshowsFirst class dealers, must be mature, must be able to represent their product wellDealers know that by representing your high quality product, they will be profitable and have profit margins which will serve them in their businessThey are very critical in deciding who becomes a Regal dealer:They look at marketshare data and customer satisfaction so they know how well they have taken care of their customers, as their customers will become our customers.

6 Supply Chain Management in Regal Marine
Single largest component that they buy:Engines for the boats: spend 14 million dollar a year on engines= dollars a dayThey have a 14-day inventory: if they can reduce it 1 day, they can reduce lot of costThey can reduce it through supply chain management.

customers. The company aims to do this by using the strategy of differentiation. Thisstrategy is useful by means of differentiating the products through innovation, highquality, and distinct features of the product. Based from these, it means that thecompany\u2019s sales increased therefore, giving due credit to the stated strategy.

Due to proper product coordination with the parts that are used for the productionof the boat, Regal Marine has created close ties with a large number of its suppliers.With this, the company is ensured to both flexibility and reliable parts. However, with thestrong economy and the repeal of the boat luxury tax on its side, it has been pavingdown debt and increasing market share.

With this, Regal is faced with a dilemma. This dilemma is thus concerned withthe company\u2019s mission. The company\u2019s mission is too stagnant, therefore resulting forthe status of the company to simply stay at a steady state.



How can Regal Marine maintain its competitive advantage globally when it isfocusing too much on the ever-changing demands of the consumers in relation to theirmission to provide quality boats?

Regal Marine has been competitive in Florida with their strategy in differentiatingtheir product.This is effective because they do this by delivering constant innovations,unique features and high quality. Also, technological advances result to a never endingdemands for innovative and new products.

In addition, with its mission to provide the customers worldwide with theirproducts, Regal Marine wants to ensure that quality is given more importance. Themanagers of the company must always have a global view of the operations strategies.Knowing that the standards of global competitiveness are high (quality, customization,convenience, variety, timeliness and cost), the company must improve on its operations(Heizer & Render, 2004). Thus, the group came up with the problem on how thecompany can maintain their edge among their competitors using strategy ofdifferentiation with the ever-changing demands of the consumers in relation to theirmission.


Point of View

The case mainly has two points of view, that of the customers and that of Regal

Marine. This case study will present both views.

Regal Marine stated its mission as \u201cproviding luxury performance boats tocustomers\u2019 world wide.\u201d So the customers would be expecting nothing less than havingboth luxury and performance if they buy a boat from Regal Marine. When a companysays that they offer luxury that means that the customers would expect the products tohave high levels of comfort and superb quality. They would also expect their boats to be


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