Business Operations Strategy the Company Research Paper

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There are significant risks, therefore, associated with dealing with Dupont. If we only used Tyvek for part of our product, Dupont can be expected to be an excellent partner, because of its substantial production and distribution capabilities and reputation within the home construction industry.

Butyl rubber is another product that can be used in the product. First developed in the 1930s, butyl rubber is a commodity product that is easy to obtain. It is currently used in roof repair for its robust, airtight qualities. There are no problems anticipated in obtaining butyl rubber (from Exxon, for example, or Lanxess, or others). Another potential supplier that has been identified is WR Grace. Grace is a chemical and material conglomerate with a major construction division. They produce air and vapor barriers. Thus, as with Dupont they are both a potential supplier and a competitor. They produce structural waterproofing systems (Grace.com, 2011). Grace has the production capability to produce components of our system but as with Dupont may be a risky partner. Lastly, Pecora is another firm in the industry that can produce components to our specifications. They specialize in sealants, and can be used strictly for that product rather than for entire systems (Pecora.com, 2011). They are also a potential competitor.

The inbound logistics would involve bringing together the sealant from Pecora, Tyvek, butyl rubber and materials from WR Grace to our assembly facility.

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Initially, this facility will be in the Northeast, but more facilities are expected to open as we expand westward and southward, to bring us closer to our customers. We expect to keep 1-2 weeks worth of inventory on hand, then produce to order. The assembly process will be partially done at our facility -- cutting in particular - then the materials will be shipped to the construction site where the contractor will assemble the barrier. To facilitate this, we will initially need to provide support to our contractor customers on-site so that they know how to assemble and install the barrier on the homes they are building.

Relationship management is critical to the success of our operations plan. In particular, we need to forge strong relationships with our suppliers. Most of these suppliers also compete in the same segment that we do, so we need to show them the value that we add without enticing them to imitate our product. We will add value in part with our strong relationships with customers. The training we provide to contractors will help us to build a strong business, and will help us to gain partnership credibility with major suppliers like Pecora and Dupont.

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