Wolf Motors

Wolf Motors – Case Study

Crystal C. Wilson

Florida Institute of Technology

Wolf Motors – Case Study

Synopsis

Wolf Motors just opened a new dealership considered an auto supermarket with different vehicle brands all sold at the same location.  Volume, marketing and service were the three most important factors for success.  However, there are some challenges related to the continued availability of the right parts and materials.  Wolf Motors prided itself in its trinity of essential components:  qualified service technicians, latest in tools and technology and the fast availability of parts to service without delay.  Also, Wolf was concerned about being prepared for the growth to come.  Growth means more parts needed for service and this meant that the purchasers must keep lower costs and providing the right parts at the right time at the forefront.  Finance and space are top concerns for Wolf.

Purpose

The purpose of this study is determine what could be done in the purchasing area to address concerns around finances and space and alleviate some of the pressures.  The supplier relationship process needs structuring and recommendations will be made to structure this relationship.  Purchasing policies and procedures may need to differ as the dealerships purchase different types of service parts and materials.  Supply chain design and integration will help John Wolf reduce investment and space requirements while maintaining adequate service levels.

Analysis

        The purchasing area could be improved since there are valid concerns around finances and space due to the purchase of the new dealership.  Low cost processes could be put into place to help save some dollars for Wolf.  Electronic Data Interchange or EDI technology could help the company purchase quickly and accurately the many products needed for all the different lines of vehicles and services required.  EDI could handle all the purchase orders, invoices and payments, expediting the entire procurement process.  Suppliers could also have a hub or vendor managed inventory store at dealerships to hold the most requested items for service and repair.  The catalogs could be used by buyers to purchase these items electronically if they are not on the shelf.  This could lessen the need for inventory on the books because as a particular part is depleted it can be reordered in quick fashion.  Wolf may also want to consider a locus of control since he owns multiple dealerships.  This could decrease costs because one order of common parts can be placed and after delivered, dispersed among all the dealerships instead of multiple orders for the same products.  This will also help save freight costs but Wolf would need to make sure this is for common parts only, not unique.