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Relationship between buyers and suppliers in a company
AutoZOne Supply Chain
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Metalcraft, an automotive part supplier has an order from a car company for rubber vent hose to be used in a new luxury sedan. To complete this order Metalcraft will need to work with a third party supplier to create the needed hoses. The company came up with a ranking system that’s meant to give information about all of the suppliers and judge them on quality, timing and delivery. This scorecard system is put in place so Metalcraft could improve product quality, and could base decisions on this information. The member of the program management team has come together to make the final decision of where they should supply from. Of the 4 managers, they had amassed 3 different suppliers that they all wanted for different reasons. Giving the contract to the wrong company could cause more defects, which could in return shift Metalcraft’s ranking down on the automotive company’s scorecards. At the same time, it’s the company’s job to source a product that conforms to the standard put forward by Metalcraft will reducing the overall cost. …show more content…
This means zero defects and delivery at a very consistent timeframe. Because Metalcraft wanted to stay competitive to other tier 1 companies around the United States a score card was needed. The scorecard addressed issued within the supply chain that could make or break the company. Metalcraft looked at its suppliers using this metric to determine their ability to deliver quality products in a timely manner. With the sheer quantity of plants that Metalcraft rely on for parts, thus having some sort of categorizing system to track supplier performance is imperative. Without this ability to track the performance of would leave the company continuously coming back to a supplier that’s subpar that would affect profits and their rating with automobile
Metallix Scotland Limited is a traditional manufacturing company based in Edinburgh. Employing 270 staff, the company mechanizes components for the automotive and aerospace industry. In order to ensure the quality of its products, MSL has relied upon customer Quality Assurance audits. However, it has been decided that the company will gain ISO 9001 accreditation and the customer base have supported this decision and agreed to the move. On the other hand, gaining ISO 9001 requires a lot of commitment and highly trained staff.
Deere & Company (Deere) has been experiencing a decrease in its profit margins for one of its aftermarket resale products, specifically the gatherer chain, over the past couple of years. Currently, the cost-price ratio is at 80% compared to last year’s 50%. The purchase cost for the gatherer chain has been steadily increasing, while the aftermarket price has been decreasing. Deere has been budgeting its price to match that of a major competitor, which has been causing the decrease. The company’s main supplier of its gatherer chain is Saunders Manufacturing, with which Deere has established a long term relationship. The owner of Saunders has a reputation of being a tough negotiator, and is someone who is known for not willing to share financial information about the company. However, the U.S. Department of Commerce has provided financial estimates in Saunders’ industry as follows: material spend, 42%; direct labor, 16%; indirect labor, 6%; Overhead, 20%. These percentages are helpful to Deere because they can be used in the negotiation process with Sanders. Since Sanders will not share any specific cost information, Deere is able to use these estimates as a way to justify Sanders reducing its prices. Using these estimates during the negotiations might also incentivize Sanders to provide accurate numbers for its specific manufacturing costs.
In addition, the bargaining power of the sources of inputs is high. The switching costs from one supplier to another are high because there are not many substitutes for the particular input for metal products. Besides, the number of suppliers who produce raw metals is small. The threat of substitute is high. There are many different kinds of substitutes for metal product company. These companies may also produce a large variety of product like Slade Company. Therefore, the substitute is low for this market. Only companies that produce high quality are able to not be substituted by the others.
Harlan Coben’s essay “The Undercover Parent” attempts to enlighten readers, specifically parents, of the benefits to installing spyware onto their children’s computers in order to keep record of their child’s online activity. Whilst admitting at first he was not particularly keen on spyware himself, Coben aims to persuade his audience of the benefits by highlighting the dangers of children using the internet unsupervised and without boundaries. However, Coben fails to supply factual evidence to back up his claims, all while stating a number of contradictions within his own arguments.
This negotiation took place between the Chief Officer of a US based company (BioPharm) and a small company (Seltek). BioPharm is operating in the pharmaceutical industry. It wants to buy or build a plant in the US to manufacture a new product called Depox. The main goal of our group as negotiators is to play the role of BioPharm to buy a plant belonged to Seltek. It is on sale. This plant is the most appropriate choice for BioPharm for a number of reasons, namely to save time and cost of building a new plant because the Seltek’s plant is running and gets the FDA approval. Besides, it also has a highly experienced workforce, which can help us reduce the cost and the time for recruiting and training new employees.
Case Study of The Home Depot Preface This Essentials of Strategic Management assignment has been made by three persons which have been working together and individually to finish the assignment properly and in time. Secondly, we would like to thank the company whose websites we were able to visit and use, to get additional information that we could use for leading the assignment of Home Depot to a successful ending. We can say, that it was a pleasure to work on this assignment and would, in the third place, like to thank each other. The persons who worked on this assignment, for the effort and time that is put in the assignment, that brought us to this finished version.
A firm can provide services, produce goods or contain elements of both. In this case, PwC is a strictly providing service firm. In manufacturing firms performance can be measured in different ways and especially with a set of quantitative ratios. For example: Labour cost per unit, material yield, unit overhead cost, stock keeping units etc. Some other measures which can be used only by a manufacturing company are inventory holding, scrap levels-percentage of material costs and value, delivery reliability, testing and simulation of a product etc.
In such situations, the buying industry often faces a high pressure on margins from their suppliers. The relationship to powerful suppliers can potentially reduce strategic options for the organization.
In this scenario, a large film making conglomerate wishes to examine a number of potential film making projects. Each project is to be ranked according to its feasibility, measured by the ability to adhere to a number of corporate objectives. There are seven proposed movies to be judged and the conglomerate will produce four to six each year.
Happy Chips, Inc. is faced with a serious problem, with only having one mass merchandise customer called “Buy 4 Less” being unhappy with the company’s operating performance. Buy 4 Less had several problems cited including frequent stock outs, poor customer service responsiveness, and high prices for the products being supplied. Buy 4 Less came up with solutions they think seem fit to fix the problems they found with Happy Chips, Inc. and if Happy Chips, Inc. wishes to remain a supplier to their company they will have to incorporate these changes. The problem however with this scenario, is that employees of Happy Chip, Inc. are not happy with the demands Buy 4 Less has bestowed upon them which include providing direct store delivery four times a week instead of three, installing an automated order inquiry system to increase customer service responsiveness, and decreasing product prices by 5%. Even though the easiest thing for Happy Chips, Inc. to do is to agree to the changes Buy 4 Less wants them to do, Wendell Worthmann, the manager of logistics cost analysis doesn’t agree to the changes right away. The main problem with this case is that Buy 4 Less is Happy Chips, Inc. one and only mass merchandise customer that accounts for 400,000 annual unit sales and 12% of annual revenue. With the mass merchandise segment having such a high profit potential, Happy Chips, Inc.
Don Bradish was recently hired to fix scheduling issues with the new company in which he works, The Fitzgerald Machine Company. There are a few relevant facts that were given in this case study. The first and foremost fact is Mr. Bradish was hired because the company is having issue with their scheduling. This is important because he comes in with a relevant degree and years of experience with a reputable company. He is going to be looked for to find a solution to the issue outlined in the case study. The second relevant fact in the case study is that the company that The Fitzgerald Machine Company is working with is having labor issues. This is considerable because the $300,000 order is a considerably large
As displayed in Exhibit-1, the five factors John Deere has based their measurements on are quality, delivery, wavelength, technical, and cost. While each of the five factors is necessary, some are quantitative measurements, meaning these involve statistical numbers that can be tracked and standardized, others are based on perception and can be left to the interpretation of the team member conducting the analysis. The composite rating scales appear to be subjective with rating scales that are muddled. Another area for improvement is the delivery rating, while an extremely important area to measure a look at the in-depth reasons why a supplier would be short on deliveries or delayed delivery time should also be looked at, this could give insight as to whether the supplier can meet certain demands. The John Deere team must also look at suppliers from an ethical and sustainable look, this should involve a look at who is supplying the suppliers, where the raw materials originate (Arrington, 2017).
Which aspects of the discussion in this section did you find most interesting? Please try to state why you found this to be the case.
The internet is a wonderful place to learn, share and do many other things. Many people argue whether being on the internet is good or bad for children. Almost every child uses the internet, whether it’s at home, at school or a friend’s house. The internet is very resourceful, therefore children can expand their knowledge, be more responsible and communicate via social media with family and friends, but whatsoever, many children become victims after accessing the internet. Throughout the essay i will be discussing many benefits and dangers of internet use toward children.
Computers and the Internet are great items for the household, but along with these advantages there are disadvantages. They are constantly changing the way that we live and do business. The Internet puts tons of information at a click of a button. This information is a great educational tool for children. The Internet can be very dangerous to young children, and there is also research being done now about possible problems that adults have with computers. It is the parents’ responsibility to make sure that the Internet is a safe place for their children.