John Deere

In order to produce the skid-loaders in a timely manner and of great quality to our customers, we must look at 4 main components when choosing the company that will manufacture these; prices, quality, versatility and capacity. The vendor we choose much be able to build and produce the skid-loaders at the price that we demand in order to sell them at a price 20% lower than any others on the market. If the supplier cannot create the skid loader lower than that price point, John Deere would not make a profit and it would not be worth-while. Next we must look at the capacity of which this company can produce. If we are looking to increase sales of the skid-loader by 15-20% per year-the company we choose must have a business plan on how they plan to grow with the demand and meet that quota, without sacrificing the quality of the product. Knowing that Deere plan to add product features that are not on the market today, we must also consider a company who is versatile in product development. Since the things we are looking at adding to the skid loader are not currently available, the features will probably evolve over time. We need to choose a company who is willing to accommodate that and be versatile in production. Lastly, but most importantly we need to have a quality product produced. John Deere is known for its high quality and longevity of its products. We cannot produce a product that damages the company's brand. The supplier that is chosen must also be known for high quality production.

Once we have chosen the supplier, I recommend that they head of the production team spend time in current John Deere production plants in order to see how current products are being produced. This way they can take some best practices and implement them into their production floor. I would also recommend that there be some cross-functional teams put in place, formal and non-formal, to ensure an open stream of communication as the new company gets on its feet. Sharing our current organizational chart with the new company could also prove beneficial in speeding up the process for their start-up team.