SBIE- 4C:
GROUP 6:
Briones, Maria Angelica D.
Carillo, Michelle V.
Coral, John Lhex S.J
Estrael, Suzane C.
Gara, Rezzel Marie T.
Navales, Cherry Rose M.
Madeja, Justine Mae D.
Pizarra, Jenny Vive D
Ursua, Romely S.
CASE 1
Integrated Logistics for SES/BAG
Overview
This case finds Maxwell Stevens, sales representative for Specialty Engineering Services
(SES), in a situation common to today’s competitive sales environment. His company, as a
supplier to major manufacturer Boston Aerospace Group (BAG), is faced with changing times.
BAG is in the midst of a “changing of the guard” as Mr. Steven’s long-time contact, Nathan
Benson, retires. Benson’s successor, Tyler Pinto, brings a new set of supplier expectations to
the fore of BAG’s purchasing strategy. Over the years, the quality of competitors’ products
began to match SES. To keep BAG as a customer, SES must improve its logistical performance
to meet rising expectations.
The case illustrates the “shrinking service window,” a concept describing increasing customer
expectations regarding service levels, that is, higher fill rates and shorter order cycles. In BAG’s
case, a change in leadership is responsible for the new, higher expectations. The change,
however, is indicative of the realization that logistics has become a strategic weapon.
SES must either match competitors’ service or face losing a major customer.
Introduction
Maxwell Stevens, who is a sales representative for Specialty Engineering Services or SES, is
faces the challenge of adapting in the changing of customer expectations in the competitive
sales environment. SES provides supplies to Boston Aerospace Group (BAG), which is an
important manufacturer, and is at the time, struggling with the retirement of Nathan Benson,
who is an established contact at BAG, and replaced b of Tyler Pinto, who brings with him new
expectations for the suppliers. This case study explores the challenges faced by SES in meeting
rising customer expectations, driven by the concept of the "shrinking service window," and
proposes strategic solutions to maintain its position as a preferred supplier.
Involvement
Boston Aerospace Group (BAG)- Major Manufacturer
Specialty Engineering Services (SES)- Supplier
Maxwell Stevens - Representative for Specialty Engineering Services(SES)
Nathan Benson- Retired contact of Mr. Steven
Tyler Pinto- the successor of Mr. Benson
Findings
Key findings in this case show the convergence of multiple crucial components.:
1. Changing Supplier Expectations: The transition from Nathan Benson to Tyler Pinto at BAG
brings a shift in supplier expectations, with a heightened focus on logistical performance as a
determinant of vendor selection.
2. Increased Competition: Competitors have improved their product quality over the years,
narrowing the gap with SES. Consequently, SES must differentiate itself through superior
logistical capabilities to retain its competitive edge.
3. Shifting Market Dynamics: The realization that logistics serves as a strategic weapon
underscores the importance of adapting to evolving customer demands to maintain market
relevance and sustain long-term partnerships.
Problem
The problem in the Integrated Logistics for SES/BAG is the need for SES to demonstrate
superior product quality and service capability to meet BAG's new requirements, particularly set
by the new purchasing agent, Tyler Pinto. This includes addressing the declining service
performance and meeting the increased service threshold levels. Additionally, SES should
reevaluate its procurement policy and supplier performance criteria to ensure the reliability and
quality of its compound suppliers. Optimizing manufacturing and distribution processes to meet
BAG's service window and threshold levels is crucial for securing the contract.
Discussion
The "shrinking service window" phenomenon underscores the need for SES to enhance its
logistical capabilities to meet rising customer expectations. While SES has excelled in product
quality, its logistical performance requires improvement to remain competitive in the dynamic
aerospace industry. The transition in BAG's leadership serves as a catalyst for reevaluating
SES's approach to customer service and logistics management
Solution

Integrated Logistics: SES should adopt an integrated logistics approach that encompasses
all aspects of supply chain management, including procurement, production, warehousing,
and distribution. This holistic approach ensures seamless coordination and optimization of
logistical processes to meet BAG's service expectations.

Customer-Centric Approach: SES should prioritize proactive communication with BAG to
understand evolving requirements, tailor solutions accordingly, and foster a collaborative
partnership.

Strategic Alignment: SES must align its logistical strategy with BAG's evolving priorities and
strategic objectives. This entails proactive engagement with BAG's procurement team to
understand their specific requirements and tailor logistical solutions accordingly.

Technological Integration: Investing in advanced logistics technologies, such as real-time
tracking systems and predictive analytics, can optimize inventory management, reduce lead
times, and enhance overall operational efficiency.

Process Optimization: Implementing lean principles and continuous improvement initiatives
within SES's logistical operations can streamline processes, eliminate inefficiencies, and
enhance responsiveness to customer demands.

Talent Development: Investing in training and development programs for SES's logistics
personnel will equip them with the necessary skills and expertise to adapt to changing
market dynamics and deliver superior service levels consistently.

Strategic Partnerships: Collaborating with strategic partners, such as third-party logistics
providers and technology vendors, can help SES leverage expertise and resources to
enhance its logistical capabilities.
Recommendation
In recommendation, SES should focus on enhancing logistical capabilities through
comprehensive assessments, proactive communication with BAG, employee training initiatives,
and strategic partnerships. In addition, strategic changes are necessary, including investing in
cutting-edge technology, expediting order fulfillment procedures, and fostering a customercentric culture within the company. By collaborating closely with BAG to understand their unique
needs, SES can customize its offerings effectively.Key actions include investing in innovative
logistics technologies, improving employee skills through training programs, and monitoring and
improving production performance. These measures will not only retain BAG's loyalty but also
outpace competitors, strengthening SES's competitive position in the aerospace market.