Cass Study

2371 Words Nov 1st, 2012 10 Pages
To student:
Instructions:
1. Read the case study

2. Answer the following questions: : What factors should Pam consider in making a decision to source globally? | : If you were a purchasing consultant hired by Pam, which cost effective method can you advice her to use in sourcing Dried floral globally. | : As a procurement officer what lessons can be learnt from this case study and what actions would you put in place? | : Why is Pam able to save 40 percent by buying offshore? What is the difference about the overseas transaction versus the local transaction? | : What are the issues that Pam may encounter with global sourcing that she is not expecting currently? |

Note in each of the question you are suppose
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If your competitor has product available more quickly, the result could be lost market share and loss of revenue. Evaluate or agree with your supplier the possibility of small changes to the product, or sales exceeding expectations and quicker transport times.

8 Value-added services.
Identify additional services available to add value to your product. Evaluate the cost of more efficient attachments to your product. Agree the supplier guarantee that it will pack the goods to ensure it arrives intact at destination, to eliminate mistakes of cutting corners on the packaging.

9 Communication / IT capabilities.
Open dialogue and communication is very important between the supplier and buyer. Late, missing or inaccurate documents can cause delays of customs clearance and, ultimately, delivery to destination. E-mail and the Internet, and phone calls, can enhance supply-chain efficiency.

10 Human toll.
Human effort and cost should be a critical part of your decision. Human effort to visit and work with suppliers overseas, the costs of airfare, hotel and food and the cost of time away from the office and family.

11. Exposure to financial and political risk
All countries and economies are subject to financial and political turbulence. As such depending on a single country or region for sourcing could be a very bad idea.

12. Vigilance issues
When a company sets up an office or its…

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