Interpretation: Difference between the purchasing policies and procedures should be concluded as the dealerships purchase different types of service parts ad materials.
Concept Introduction: Any company’s supply chain is required to cater to the entire range of products and services required by the company. There are likely to be variations in the types of products and even services. The type of suppliers and the arrangements with suppliers have to be, essentially, suitable for each individual product/service depending on the type of requirements as well as the specific supply chain available in the market for such product/service. Thus, the organization needs to build flexibility and variations in its
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OPERATIONS MANAGEMENT LL PACKAGE
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardA sourcing strategy is essentially a business case for an organisation to determine an optimal approach to procure resources. AusMed which manufactures medical ventilators, wants to procure a heating tube which is a critical component of humidification equipment. In comparison to the value of the ventilator, the heating tube cost less. Moreover, there are very few suppliers in the world that can supply the heating tubes. Outline the steps involved in the sourcing the heating tube? Discuss what sourcing strategy that AusMed needs to adopt while procuring heating tube?arrow_forward
- "Currently, the trend has been moving toward outsourcing combined with the creation of supply chain relationships, although traditional firms preferred the"make" option QUESTION: what drives organizations to make their own materials, components, services, and/or equipment in the house instead of outsourcing? word count: 300 wordsarrow_forwardIn purchasing an item, there are two conceptual dimensions, generally speaking, either product or service. Compare and contrast the two concepts in terms of similarity and difference. What kind of item can be an example, which includes both dimensions of product and service?arrow_forwardObjective: Explore how to use tools such as Porter’s Five Forces model to analyze external forces and market competition. Porter’s Five Forces analysis for a healthcare hospital - Provide examples (e.g., competitors, suppliers) as you analyze the five forces.arrow_forward
- Research with cross-functional sourcing teams has revealed that teams that included suppliers as active team participants put forth greater effort, on average, than teams that did not include suppliers.With regards to the above statement, discuss why the involvement of external suppliers can positively affect a team’s effortarrow_forwardResearch with cross-functional sourcing teams has revealed that teams that included suppliers as active team participants put forth greater effort, on average, than teams that did not include suppliers. With regards to the above statement, discuss why the involvement of external suppliers can positively affect a team’s effortarrow_forwardE3 You have been retained as a freight forwarder to export 20 Containers (apples) of TEU’s to Mumbai, India, from Canada OCEAN SHIPMENT The dimensions of each box of apples is: 18v12x18 inchesActual weight of each box is: 5 KgHow many boxes will fit one TEU?What is the CWT?Do you need specialized services, as this can be perishable?What are the documents you need to clear Canadian Customs and Indian Customs?Which type of bill of lading will be used in this scenario, especially if the payment of goods to the exporter has not been made?Which routing will be the most efficient and why?Please discuss the Ocean Conventions currently in placePlease list and discuss five risks involved in the transportation of cargo.As an ocean freight forwarder, please recommend five ways to improve the economic-efficiency of this cargo for future transportation.arrow_forward
- Below are the weaknesses/ disadvantages of Direct procurement. 1. Risk of stock-outs 2. Relatively high costs 3. Quality standards 4. Handling Relationships How do we overcome those weaknesses?arrow_forwardIf the supplier’s price of lamb rack changes from $13.00 per pound to $14.14 per pound, what can help to quickly calculate the new cost per usable pound without performing the butcher test? a. digital scales that show weight in pounds b. standardized yield c. cost factor per pound d. cost factor per portionarrow_forwardWhat is a comprehensive strategy for staff accommodation, e.g. worksite camps, house rental, security, etc,training for transfer of ESHS knowhow to temporary workforce and subcontractors as well as a strategy for guaranteed labour rights in the supply chain, e.g., OHS requirements, child labour, forced labour and modern slavery.arrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning