Sunspot Inc
What are the most likely benefits of forming strategic supply alliances with Sunspot’s key suppliers? I believe that It Is Important to realize that a strategic alliance or partnership is solely depended on trust and faith in the relationship between all involved in simultaneous stages should not change or use those stages for their own advantage without consideration of the organization involved. Some of the advantages would be:- Developing competences and learning form the partners Salability and protection of resources Is maintained
Developing low cost models hence financial benefit Each partner can concentrate on different stages of the supply 2.
What are the disadvantages or risks of such alliances? There are some disadvantages In forming strategic supply alliances, for example, the partners must share resources and profits and often skill. This can be critical If business secrets are Included In this knowledge. Also, the companies Involved may become a competitor one day, if they profited enough from the alliance and grew enough to end the partnership and are able to operate on their own in the same racket.
There is also the risk that the alliance is uneven, meaning that the decision powers are distributed very uneven, the weaker partner might be forced to act according to the will of the more powerful partners even if it is actually not willing to do so. 3.
How can these disadvantages be offset? In order to offset some of the disadvantages of a strategic alliance, the legal form and contractual terms of need to be carefully thought out and drafted so as to ensure that the intended benefits of the alliance can be achieved without any unforeseen negative consequences.
For a limited strategic alliance involving access to a distribution network, for example, the agreement might take the form of a contract without the need to set up a separate vehicle to carry out the agreed actions. If Sunspot Inc. And its alliance partners are using unique skills or intangible assets, it might be advisable to form a separate vehicle such as a Joint venture company and the initial contributions of the strategic partners would need to be closely defined and measured.
Arrangements for cost sharing or sharing of profits or losses of the alliance would need to be defined In the contract. Case study – The privileged Fly 1 .
Discuss the basic inventory problem confronting this firm. The company has decided to operate on low inventories in order to save money, but inventory carrying cost is still over 30 percent a year. The problem with carrying small inventory is that there Is less lead time. This is what is driving freight bills up and costing the company money. They do not want to lose their reputation as a reliable supplier, so 2.
Air freight bills keep growing both in numbers and in total dollar value of freight transported.
What are the factors that have contributed to the development of this situation? Do they reflect efficient or inefficient management of supply, inventories, and production in firms such as this one? Again, I believe that the problem is keeping a low inventory. When inventory is not available, the company has to wait for it to become available, and in order to get it to the customer in time, they have to overpay for faster shipping. I will have to say that I do not blame it solely on Ms.
Glass thou, her inventory issues relate directly to the sales forecast, and obviously there is a robber with it if she doesn’t have available what she needs when she needs it. I think there needs to better communication and better supply management. The company doesn’t have to stock up on inventory to be more efficient, they Just need to keep the right amount, and that is where the problem lies.
3. What should Joan Glass do? In my opinion, she should talk to Harold and come up with a better sales forecast. Their forecast needs to be more reliable in order to fix the inventory issues.
If they want to save money by keeping a low inventory, then the inventory they do keep has to be accurate. .
Should Glass suggest a materials manager? Material manager deals with the tangible components of a supply chain covering the acquisition and replacement of parts, quality control of purchasing and ordering parts, and the standards involved in ordering, shipping, and warehousing those parts. I think in this case, it would be beneficial for the company to hire one; it would consolidate all aspects of the supply chain and better the communication between all the departments involved. . Should Glass build up her inventories? I don’t think it’s Just a matter of building up the inventory. All you are doing there is trading the cost of higher freight bills for the cost of keeping a larger inventory. It’s not Just building the inventory, its accurately building the inventory through better forecasting.
Case Study # 3 – Pacific Healthcare 1 . What alternatives should Barney Rubble consider when addressing the problem? It is clear that there are several cheaper options than Kodak.
The problem is that Kodak also furnishes X-ray equipment at a lower price, including maintenance and service because of the single supplier agreement they have with Pacific. So while he may eave on film by going with a cheaper option, he may have to pay more for the equipment service and maintenance. These are all things Mr.
. Rubble should consider. 2. Should Pacifism’s supply policies allow for any medical staff personnel to control sourcing decisions? No, I don’t think so. I think sourcing decisions should be in full control of the supply management office.
I think medical staff should be consulted in sourcing decisions and they should be aware of what is going on, but I think the supply manager would have a broader understanding of the procedures of supply policies than any medical staff member. . What are the advantages and disadvantages of staying with Kodak – or changing suppliers? How would you getting. It has been done the same way for 15 years and, not only is the film quality the best, but they provide maintenance and service at a lower cost because of the agreement Pacific has with them.
With Kodak there will be no surprises. The disadvantage with Kodak is the price of the film, and the fact that they will stop any other service if they are not the sole provider of such film.
Changing suppliers could work, the film quality is comparable, and this would save thousands of dollars every ear. The disadvantage would be losing the discounted maintenance and service Kodak provides. To evaluate it, I would compare the price of the 4 companies that can provide the x-ray film, and get a quote for maintenance and service and from all of them as well.
I would then see if it would be cheaper to go with a different company than Kodak. 4. What action could Mr.
. Rubble have taken prior to Mr.. Howl’s death to obtain reduced film prices? I think Mr..
Rubble could have done this a lot earlier. He could have gotten quotes from these other 4 companies, to include x-ray equipment maintenance and service, and simply compare it to Kodak. I think this would have created competition and it would have driven Soda’s prices down a bit, because obviously they want Pacifism’s business. I think he could have talked Mr..
Howell and his staff into using a comparable quality film, if he showed them how much money this would save Pacific.
Case Study # 4 – The Case of the Sleeping Dogs 1 . Is it an ethical problem for a supply manager to buy something he or she knows is bad for the environment, of to avoid buying something known to be environmentally safe? It depends. I personally do not think it is an ethical problem for a supply manager to buy something that is bad for the environment, or to avoid buying something known to be environmentally safe.
As someone who cares about the environment, I have to also be realistic and know that there are some things you Just can’t avoid. Supply managers have a tremendous impact on the success of an organization.
These managers are engaged in every facet of the business process – planning, purchasing, production, transportation, storage & distribution, customer service, etc. These managers connect the different parts of an organization. Their performance helps organizations control expenses, boost sales, and maximize profits. They also focus on facilitation and collaboration.
Sure, if there is a supply manager can do his/her Job, and at the same time be environmentally conscious, that would be great, but depending on the institution and the line of work the supply manager is in, it may be impossible to be both.
2. What is a supply manager’s responsibility to the institution versus his or her responsibility to society in general? As mentioned above, supply managers’ touch so any different parts of a business, that it puts them in a unique position to help other functions execute their strategies.
One of their key goals is to reduce costs and increase efficiency at every step in the supply chain without sacrificing quality or important as hi/her responsibility to society in general. He/she should strive to do the best Job he/she can while being environmentally conscious and safe. I think it is possible to achieve both, maybe not at 100%, but to the point where everyone in the processed is considered. Again, a lot has to do with the type of institution the supply manager works in.
