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
o There is a chance that a competitor will be first-to-market, thereby decreasing the company’s competitive advantage.
* Examine the manner in which the firm’s decision to outsource offshore is impacted by foreign exchange. Determine whether or not it matters where the company outsources offshore. Provide a rationale for your response.
According to Misra and Choudhary (2010), advanced information and communications technology such as virtual private networks, allows organizations to reduce cycle times and operational costs. Target utilizes an efficient ready-to-ship process to get their products out to thousands of vendors. Technology links all the vendors into a customized online community with extensive reporting and management systems. Vendors can easily and efficiently order shipments from regional distribution centers. Technology has streamlined costs in this process by eliminating thousands of faxed documents from vendors. Target is also able to fill trucks with more products at lower prices (“Target Corporation”, n.d.).
Businesses benefit from having a good relationship with their suppliers of raw materials and components. In manufacturing, companies are adopting “Just-in-time” manufacturing. This means that businesses only produce when they have an order, and they only get materials delivered when they are needed. Businesses require reliable and efficient suppliers to be able to order their stock last-minute.
As a result of this and the age of the production equipment turn around for orders can be three to four weeks. If the process takes too long a competitor can take away business. Especially if the competitor has a factory that is more up to date with their technology and processes.
Implement extensive research to predict possibility of economical, cultural or financial complications in the outsourcing country. Make economical/political stability one of the factors in the evaluation process as well as tariffs, customs, and insurance.
On the other hand however, if a company do not introduces its product fast enough, it might lose its competitive advantage for that market. Generally, the first to penetrate a market with a new idea becomes the leader of that market/product. If the company waits too long to put out the new product on the market, its risks a competitor being the first to introduce a similar item and becoming the
A competitor gets to market faster with something you were already developing and you need to catch up quickly
| |3.decide and find appropriate suppliers in different product |period, including improve product features, broaden product range, |
6. In your opinion, what are the key lessons from this case study for supply chain managers?
We are all aware about the importance of supply, manufacturing and operations chain for any business. It becomes even more important if we are crossing the borders and entering international marketplaces as we are
❖ To make sure of availability of parts and other stuff critical and necessary to maintain services that will ensure the customers needs and demands, a good relationship with the suppliers and developers has to be achieved.
Transport plays a critical role in the supply chain and according to Bhattacharya et al. (2014) it is becoming one of the key components of the whole supply chain valuation for many organizations. Transportation is the movement of good from one location to another. Supply chain is a network of individuals, organizations, activities, resources and technology that is involved in formation and sale of a product, which is from the delivery of source materials from the supplier to the manufacturer, through to the end user. Hopkins (2007) states that supply chain professionals look at whole business procedures, which is from raw materials to manufacturing, wholesaling and retailing. And by