John Deere Logistics Cost Analysis Essay
With different prices and services across the facilities, management is trying to identify opportunities to standardize costs and services across the business units. The goal of this case study is to update Deere and Company’s …show more content…
Standardizing on-site transportation on a corporate-wide scope will not result in the $69 million in savings over three years regardless of the lower price per unit of service. Synergies will eventually lead to these cost reductions, as will steps towards continuous improvement and movement further along the experience curve. As briefly mentioned above, enhanced ease of communication due to the similarity of supply chains of Deere’s plants will lead to fewer complications between plants and the enhanced ability to understand corporate processes. Promotion from within will be easier because managers will be able to lead any single location whether in Canada or the US.
Deere has shown executive interest in making logistics are core competency. We would agree that this goal should begin with the consolidation of the inbound an