Purchasing and Supply Chain Management
6th Edition
ISBN: 9781285869681
Author: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter C, Problem 6.2A
Summary Introduction
To identify: A plan that will allow Company FC to carry out the recommendation.
Case summary:
Company FC is a Company FC is a $3 billion producer of small industrial engines. The firm is undergoing an internal review on the areas the company should focus the product development efforts. Insourcing and outsourcing is part of redefining Company FC approach.
Outsourcing:
It is the practice followed by companies to hire a third party to produce some goods that were previously made in-house in the company by their own employees.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You have just been hired as an intern with XYZ Sdn. Bhd. This company manufactures
sportswear. Since you have taken a course on Energy and Sustainable Development in
UNITEN, your supervisor has asked your opinion on how to improve the life-cycle
sustainability of one their products, the XYZ Running Shoes. Prepare a brief outline of
your recommendation, which should include FIVE (5) improvements that the company
can implement to improve the sustainability of their product.
Many organizations have differentiated themselves in the marketplace by their "low cost" value proposition to customers (i.e. Spirit Airlines, Dollar Tree, Walmart, and Aldi). To achieve this, the organization fine-tunes their business model to remove as many overhead costs and unnecessary costs so it may pass those savings on to its customers. Select a domestic or international business that has a "low cost" value proposition to its customers and consider the following questions: How does it market itself? How does a low-cost operating structure make them stand out and succeed in the market? Is "low cost" a sustainable model for this company? Evaluate this strategy from an ethical perspective.
For the strength and opportunities listed below. Create one section for matching strengths to opportunities. Discuss how the company can use the strengths to capitalize on the opportunities. You should discuss every single identified opportunity.
Strength:
It has a solid foundation of trustworthy raw material suppliers, allowing the business to get around any supply chain bottleneck
Neiman Marcus products have a consistent level of quality due to the successful automation, which also allows the business to scale up and down in response to market demand.
Neiman Marcus Group also developed a solid distribution network through time that can cover most of its prospective market.
Opportunities:
Less inflation makes the market more stable and makes it possible for Neiman Marcus Group consumers to obtain loans at cheaper interest rates.
The business has made significant financial investments into the web platform over the last few years. With this investment, Neiman Marcus Group now has…
Chapter C Solutions
Purchasing and Supply Chain Management
Ch. C - Avion, Inc. Susan Dey and Bill Mifflin,...Ch. C - Prob. 1.2ACh. C - Prob. 1.3ACh. C - Prob. 1.4ACh. C - Prob. 1.5ACh. C - Avion, Inc. Susan Dey and Bill Mifflin,...Ch. C - Avion, Inc. Susan Dey and Bill Mifflin,...Ch. C - Prob. 1.8ACh. C - Prob. 1.9ACh. C - Prob. 1.10A
Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - Prob. 3.1ACh. C - Prob. 3.2ACh. C - Prob. 3.3ACh. C - Prob. 3.4ACh. C - Prob. 3.5ACh. C - Prob. 3.6ACh. C - Prob. 3.7ACh. C - Prob. 3.8ACh. C - Prob. 3.9ACh. C - Prob. 3.10ACh. C - Prob. 3.11ACh. C - Prob. 3.12ACh. C - Prob. 3.13ACh. C - Prob. 5.1SACh. C - Prob. 5.2SACh. C - Prob. 5.3SACh. C - Prob. 5.4SACh. C - Prob. 5.1SBCh. C - Prob. 5.2SBCh. C - Scenario 3 Ben Gibson, the purchasing manager at...Ch. C - Scenario 3 Ben Gibson, the purchasing manager at...Ch. C - Scenario 4 Sharon Gillespie, a new buyer at...Ch. C - Scenario 4 Sharon Gillespie, a new buyer at...Ch. C - Scenario 4 Sharon Gillespie, a new buyer at...Ch. C - Prob. 6.2ACh. C - Prob. 6.3ACh. C - Prob. 6.4ACh. C - Prob. 6.5A
Knowledge Booster
Similar questions
- Many organizations are improving efforts to increase the sustainability of their organizations. How should metrics of sustainability be reported for publicly traded companies?arrow_forwardBrian and Dom have pooled their resources and have started a major logistics company that transports produce such as potatoes, maize meal and carrots. Their depot is based in Midrand, Gauteng. The pair wants to grow the business and has therefore sought your assistance as a supply chain scholar to assist with the following questions that they have for you. Both partners understand the need to measure performance, however, Dom prefers to have financial performance measures and Brian prefers to have nonfinancial measures. Advise the partners on which performance measure/s you believe should be used. Justify your stance by discussing at least three key points.arrow_forwardHi there can you please assist on the following question below You have been recently appointed as a Purchasing Manager at Unilever. The director has mentioned that the organisation has recently been experiencing uncertainty in demand and there is currently no available capacity. As such, he is unsure whether he should make or buy the new range of cleaning detergents. Differentiate between insourcing and outsourcing. Discuss at least two circumstances favouring buying (outsourcing) and at least two circumstances favouring making (insourcing). Based on your discussion of the circumstances favouring outsourcing and insourcing as well as the restrictions outlined by the Director, identify whether the cleaning detergents should be outsourced or insourced. Justify your answer by discussing at least two key points. Identify any two potential drawbacks that Unilever could face given their choice of sourcing method.arrow_forward
- Strategic supply chain management focuses on the long term and the big picture. Tactical management focuses, instead, on processes and procedures that can save time and money while also meeting customer demands and providing value. Tactical decisions can also help minimize risks. Tactical supply chain decisions are made within the constraints of the overarching strategic supply chain decisions made by company management. Tactical planners take the strategic message and focus on creating real benefits for the company. These can include tactical decisions in manufacturing, logistics, suppliers, and product development.Tactical-Level Negotiations with Suppliers:Many companies recognize the cost benefits of using global suppliers. The company as a whole, therefore, may adopt strategic supply chain policies to take advantage of international suppliers who can provide quality products at a competitive price. At a tactical level, local and regional management must work within strategic…arrow_forwardStrategic supply chain management focuses on the long term and the big picture. Tactical management focuses, instead, on processes and procedures that can save time and money while also meeting customer demands and providing value. Tactical decisions can also help minimize risks. Tactical supply chain decisions are made within the constraints of the overarching strategic supply chain decisions made by company management. Tactical planners take the strategic message and focus on creating real benefits for the company. These can include tactical decisions in manufacturing, logistics, suppliers, and product development.Tactical-Level Negotiations with Suppliers:Many companies recognize the cost benefits of using global suppliers. The company as a whole, therefore, may adopt strategic supply chain policies to take advantage of international suppliers who can provide quality products at a competitive price. At a tactical level, local and regional management must work within strategic…arrow_forwardStrategic supply chain management focuses on the long term and the big picture. Tactical management focuses, instead, on processes and procedures that can save time and money while also meeting customer demands and providing value. Tactical decisions can also help minimize risks. Tactical supply chain decisions are made within the constraints of the overarching strategic supply chain decisions made by company management. Tactical planners take the strategic message and focus on creating real benefits for the company. These can include tactical decisions in manufacturing, logistics, suppliers, and product development.Tactical-Level Negotiations with Suppliers:Many companies recognize the cost benefits of using global suppliers. The company as a whole, therefore, may adopt strategic supply chain policies to take advantage of international suppliers who can provide quality products at a competitive price. At a tactical level, local and regional management must work within strategic…arrow_forward
- You have just been hired as an Assistant Manager of Green and White Food (GWF), a restaurant/bar supply business that provides a full range of wholesale products to eating and drinking establishment in the South-East United States. The business, established 25 years ago, caters to college students-oriented bar and grills. It has traditionally offered the lowest price on the market for food service products, although the level of service offered is significantly lower than other firms, roughly around 84 % in terms of product availability. Instead, focus has been on operational efficiency to minimize costs. Growth has been steady due to the slim profit margins experienced by most of the customers that the firm serves. In the last 2 years, however, a number of competitors have begun to match GWF’s prices while providing higher service levels, particularly in the areas of delivery replenishment time and product availability. As a result, GWF’s market share has been shrinking…arrow_forwardWhat factors should organizations consider when deciding whether to outsource certain business functions or processes, and what strategies can they employ to effectively manage and mitigate the risks associated with outsourcing arrangements?arrow_forwardGive three examples of organizations that have acquired or developed new technologies to support the following objectives and provide a short rationale for each example: reducing cost reducing lead time or lead time variability improving quality increasing flexibility and the ability to customizearrow_forward
- What role do you foresee analytics having in the future of supply chain management?arrow_forwardScenario D: Your company wants to get started in sustainability and ethical sourcing in their business. Your boss wants a pitch proposal to the senior leadership team to address this opportunity.arrow_forwardWhen purchasing construction materials for a home renovation, what factors should a homeowner consider? Provide an example of a green building product—a sustainable alternative construction material—and explain each factor in relation to your example. Address how the choice of using this particular green building product might influence and be influenced by supply and demand.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning