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John Deere Distribution System

Introduction

Improving supply chain management has become essential for every company in order to sustain in this competitive world. Having effective supply chain management (SCM) strategies can save millions of dollars for a company, and also to make the customers delighted by offering low overall product cost. John Deere Equipments is one of the famous companies which are considered as an example of effective supply chain management systems. The company is a leading manufacturer of agriculture and tuff, construction and forestry, and consumer and commercial equipment. The major product line of company, however, belongs from the agriculture equipments such as tractors, harvesters (cotton and combined), balers, snow throwers, and lawn mowers.

The company has enjoyed many years of success due to its quality customer service. The consumers classify the company amongst the best American brands, for the features of reliability and durability. One of the major features that make the company successful in attracting and retaining the customers is its organized supply chain and distribution networks. Also, the company becomes able to save millions of dollars in the logistics and transportation operations, due to its effective distribution systems and strategies.

This paper describes the major operations of the John Deere Company, along with its distribution system. The paper relates the operational efficiency of the company to its effective distribution system, analyses the role of distribution systems in the success of company, and also makes recommendation for improving this system.

History of the Company

John Deere founded the company in 1837. By the year 1868, the company was incorporated as Deere & Company, and now the same company is going to celebrate its 175th birthday this year. The company has been successful in its growth and international expansion strategies. The company was a one man blacksmith shop, when it was developed by John Deere. Now, the company has offices in nearly 160 countries, and has more than 46,000 employees.

In United States, John Deere counts among one of the oldest companies. The company is known for practicing the principles of innovation, quality and integrity right from the day of its establishment. The strategy of the company is based on providing quality service to the people who belong to the land. In order to enhance the customers' experience and maintaining differentiation strategy, the company has been consistently innovating the quality products. Some of the factors that contribute to make the company's strategy successful include efficient operational performance, integrated and aligned supply chain management, environment of team work.

The company includes four major manufacturing divisions. It manufactures agricultural equipments and products to be used at forms, consumer and commercial equipment to be used by individuals in taking care of their lawns, grounds or in order to fulfill other residential needs, forestry and construction equipment, and finally the power systems and products which are used in integration with other systems of John Deere. John Deere is one of the top listed companies in the US, for which stock is traded ...