Coral Drugs
Grace
Coral Drugs Case Study
1. I would recommend the small local manufacturer, Gorman and Irizawa Ltd to the vice president of purchasing. However, at the same time, I would not switch the Twinney manufacturer right away. I would like to split the annual orders of dandruff shampoo between Twinney and G & I, because I want to make sure that G&I will have the ability to produce the same products that are required.
In addition, G & I offers a larger sized container for all of their Coral Dandruff Shampoo products at a lower price than Twinney’s offer. I would recommend giving G & I a chance to manufacture half of the total requested units with their bulk packaging. What’s more, G & I offers next-day delivery service without minimum order quantities; and its manufacturing facility is located near Coral’s central warehouse, so it will be more efficient when emergency orders are needed. This will help make sure that the warehouse will not run out of the product at any given time. Also, we can minimize the inventory holding costs by adopting the G & I manufacturer because we can order whenever we need to. Since we trust Twinney’s quality, we can try to order more from them, and order less from new manufacturer, G & I. But in case we need to place an emergency order, we can order from G & I to get the products immediately because of the strategic location of their plant.
In conclusion, I would recommend adding an additional manufacturer, G & I, instead of switching out old one, Twinney, which is a good manufacturer as well despite the shipping problems. This way, Coral Drugs can keep its reputation for long-term relationships with its private-label product suppliers while expanding their sources at the same time.
2. I agree with the way Shirley handled the issue so far; but I think Shirley should do more research about the potential manufacturer, G & I. Even though it offers larger quantity with lower price, Shirley should not ignore the quality of products.
Coral Drugs Case Study
1. I would recommend the small local manufacturer, Gorman and Irizawa Ltd to the vice president of purchasing. However, at the same time, I would not switch the Twinney manufacturer right away. I would like to split the annual orders of dandruff shampoo between Twinney and G & I, because I want to make sure that G&I will have the ability to produce the same products that are required.
In addition, G & I offers a larger sized container for all of their Coral Dandruff Shampoo products at a lower price than Twinney’s offer. I would recommend giving G & I a chance to manufacture half of the total requested units with their bulk packaging. What’s more, G & I offers next-day delivery service without minimum order quantities; and its manufacturing facility is located near Coral’s central warehouse, so it will be more efficient when emergency orders are needed. This will help make sure that the warehouse will not run out of the product at any given time. Also, we can minimize the inventory holding costs by adopting the G & I manufacturer because we can order whenever we need to. Since we trust Twinney’s quality, we can try to order more from them, and order less from new manufacturer, G & I. But in case we need to place an emergency order, we can order from G & I to get the products immediately because of the strategic location of their plant.
In conclusion, I would recommend adding an additional manufacturer, G & I, instead of switching out old one, Twinney, which is a good manufacturer as well despite the shipping problems. This way, Coral Drugs can keep its reputation for long-term relationships with its private-label product suppliers while expanding their sources at the same time.
2. I agree with the way Shirley handled the issue so far; but I think Shirley should do more research about the potential manufacturer, G & I. Even though it offers larger quantity with lower price, Shirley should not ignore the quality of products.