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?