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Regal Marine
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Regal Marine

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Regal Marine

Twenty-five years  after  its  founding by potato  farmer Paul Kuck, Regal Marine has become  a powerful  force on  the  waters  of  the  world.  The  world’s  third-largest  boat  manufacturer  (by  global  sales),  Regal  exports  to  30  countries,  including Russia and China.  Almost one third of its sales are overseas.

Product design is critical in the highly competitive pleasure boat business: “We keep in touch with our customers and  we respond to the marketplace,” says Kuck. “We’re introducing six new models this year alone. I’d say we’re definitely  on the aggressive end of the spectrum.”

Supply Chain Management at Regal Marine

Like most manufacturers, Regal Marine finds that it must spend a huge portion of its revenue on purchases. Regal has  also  found  that  the  better  its  suppliers  understand  its  end  users,  the  better  both  supplier’s  product  and Regal’s  final product. As one of the ten  largest U.S. powerboat manufacturers, Regal is trying to differentiate its products from the  vast number of boats supplied by 300 other companies. Thus, the Orlando firm works closely with suppliers to ensure  innovation, quality and timely delivery

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Read the caselet carefully and answer the following questions:

1. Why is supply chain management important to Regal Marine?

 

2.  Analyse  the merits and demerits of  the  approaches adopted by Regal Marine  for  its  supply  chain management.  What other strategies might be used by the company to improve supply chain management?








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