Deere & Company Commercial Worksite Products headquartered in Moline, IL, had more than 150 years of history. The company was into manufacturing, distribution, financing and servicing of agricultural equipment, construction and forestry equipment, and commercial and consumer lawn care equipment. Deere & company had pioneered the Skid-Steer loader market more than 25 years ago, but has been outsourcing product design and manufacturing to New Holland, an independent contractor. The company opened a new manufacturing facility in Knoxville, TN. The mission for the new facility is to integrate suppliers into the product development process for its Deere manufactured skid-steer loader as quickly as needed. The suppliers should have strong experience with the skid-steer machine, the advantage of sourcing worldwide to supply at various location with reduced supply chain overheads. Deere conducted business in more than 160 countries. It could take advantage of the local sourcing capabilities in those countries as when a few parts are advantageous to be sourced locally to reduce delivery time and at a good price. The suppliers will be evaluated based on their ISO and other industry certifications and quality. As Deere is indeed an international company, the international standards need to be keeping, and the company wants to compete with a product that has more features, better quality, lower price and fantastic delivery and service. The supplier’s way of doing business will matter in this situation. The production capacity of the supplier and their capital security is important. The supplier will have to work with Deere for a long-term period with various payment terms and the willingness and capacity of the company in this respect has to be evaluated. Also, Deere expects more than just supplying the parts. Deere expects technical service and support, warranties and to benefit from the research background of the supplier to improve the product quality. Deere...
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