Question

First 4 pictures are the case,

Case 12-3 Plastic Cable Clips In mid-September Robyn Pemberton, purchasing officer in the laundry division of Fisher & Paykel Limited, lo- cated in Auckland, New Zealand, was wondering which procurement option made most sense for the plastic cable clips requirements for the new line of washing machines. THE LAUNDRY DIVISION Fisher & Paykel Limited was the largest home appliance manufacturer in New Zealand with sales of its major ap- pliances amounting to $135,000,000 and total sales of $270,000,000 for the fiscal year ending March 31, includ- ing $36,000,000 of export sales and royalty income. It comprised eight operating divisions, one of which was the laundry division employing over 500 people to produce washing machines and dryers. Currently, the laundry divi sion produced about 50,000 washing machines, solely for the domestic market. THE NEW WASHING MACHINE For the last two years, the laundry division had been devel- oping a new line of automatic washing machines. The plan- ning and development of the new machine was conducted by a seven-person committee of engineers, production, and marketing people as well as a purchasing coordinator. The new machine, designed entirely by F&P, used electronic controls. It was believed to be technologically advanced by world standards. Its manufacturing process would be highly automated, featuring considerable part rationalization and cost reduction over the old production line. In fact, maintaining costs at the lowest possible level was one of the key priorities of the planning committee. With good opportunities for export and royalty in- come, the laundry division hoped to produce between 75,000 and 100,000 new washing machines a year. How- ever. 50,000 machines were planned for the first full year

please answer these!

Answer 1

1. The different suppliers were Olsan Plastics, Barry Cleaver and Sons and G T Rollman.
The reason for having multiple suppliers were because of the large quantity of clips needed and that too of different kinds and also the lead time for each of the supplier was different. Also, a new sort of clip design was needed and hence all suppliers were checked.

2. Robyn told Cleaver that he had to compete with multiple suppliers because there were other suppliers providing the same clips at a competitive rate. Also, the parts which Cleaver would give would be imported from Japan and the license from there could be revoked at any time.

3. Olsan Plastics - The company had governance from Government and was supplying to the major competitor of Robyn.
Barry Cleaver & Sons - Had excellent reputation, the delivery was good and the sufficient lead time was given.
G T Rollman - Delivery and lead time was good of the company. Also, the company was able to supply material when needed urgently.

4. Robyn should keep atleast two suppliers in mind and decide accordingly. It is better to choose two suppliers in case of emergency. The supply should be procured from each evenly basis the quality, price and delivery speed. Also, Robyn should do a thorough analysis of the situation and finalise those two suppliers with whom he can have a long term relationship.