Essay About Unreliablelead Time And Plastic Cable Clipsfisher

Plastic Cable Clips Case Study
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Assignment #5Case #12-3 Plastic Cable ClipsFisher & Paykel Largest Manufacturer of Home Appliances Location: Auckland, New Zeland 8 operating Divisions Major Appliances: $135000000 Total Sales: $ 270000000 $36000000 – export sales & royalty income Laundry Division ⁄ 500 employeesNew line of Automatic Washing Machines Key Priority- Maintaining Least cost Hope to Produce- 75000 to 100000 new machines 6 types of ties (total 45) plastic clips to be used in each machine comparing to 20 diff. ties (total 250 ties) in the old washing machineSuppliers to be decided Quotations invitedTotal Purchases from multiple suppliers for the old machine – $ 1250000 $500000 Olson Plastics $500000 Barry Cleaver $200000 GT Rollman $50000 Plastic DistributionOslon $ 500000 order Local Manufacturer Supplier for many years Quality not as highService problems Prices twice as high Delivery – major concern, unreliableLead time- 6-8 months Capacity Issues Government ProtectionBarry Cleaver & Sons$ 500000 orderExcellent reputationBarry Clever – advisorImporting from JapanPrices – excellentService – excellent Delivery – goodLead time – 6-8 monthsLicence could be revoked- past issuesTechnical expertiseGT RollmanAgent Importing from AustraliaExcellent ServicesHigh pricesGood DeliveryIn bad times: 3-4 monthsUrgent Times- 6 weeksPossible Duty Free Access to Australian marketAustralia had strong relationsPlastic DistributingSmall Young Company Fulfilled orders in tight timesNo technical expertise Eager to acquire ordersSelection CriteriaLocation – New Zealand or Australia preferable Lead Time Services Costs Involved – Procurement & StorageAdvantage/DisadvantageOlson – AdvantageOld Supplier Protection from Government Olson – IssuesCostDeliveryServiceQuality Insufficient capacityBarry Cleaver – AdvantageReduced Lead time Excellent service Technical Expertise Barry Cleaver – IssuesRevoking of permission GT Rollman – AdvantageExcellent Service Fast Delivery Urgent Delivery Reduced Storage costs Duty Costs minimum Australia Preferable choice GT Rollman – IssuesVery high cost Plastic Distribution – AdvantageGave order in tight times Eager for orders & performing  Plastic Distribution – IssuesNewSmallno Technical ExpertiseCost AnalysisG.T.Rollman[pic 1]Insufficient quoteExpensiveCourse of action: Inquire about pricingNegotiate better pricesBarry Cleaver & Sons