platinum Box
Executive Summary
Platinum Box is a Canadian company that when started in 1985 specialized in graphic design. In1992 with sales of $5,000,000 and 20 employees the decision was made to have Platinum expand it’s operation to include fold down boxes. By 2005 Platinum’s sales had expanded to $20,000,000 with 75 employees. Jim Hicza, the President of Platinum has announced that the company will be expanding into the United States. This is expected to double Platinums sales in just 3 years.
In order to expand it has been decided Platinum will be required to purchase 5 more presses. Jared John Hicza, Procurement Manager for Platinum Box has been asked to source a supplier for the presses. Their findings have come up with three potential press suppliers that would meet their needs.
Jared will have to provide information to make a recommendation on if Platinum should purchase the new Press’s required from their current supplier (JabaKing, in which they have done business and developed relationships with for over a decade, or to source out another supplier.
Jared findings will recommend they continue their partnership with their current supplier, JabaKing. Jared has based his recommendations on an analysis of each supplier including:
• Environmental and Root Cause Analysis
• Alternatives and Options (Including Total Cost of Ownership Analysis
• Implementation
• Monitor and control
Issue
Provide a recommendation of which supplier to proceed with purchasing five new presses with and what financing method to use in purchase in order to succeed in Platinums expansion into the United States.
Analysis
Strategic reasoning and capacity:
• Platinum plans on expanding into the US market
• Plans on being a full capacity within 2 years
• Projects sales to double within the next 3 years
• Current capacity allows for 280,000,000 boxes per year (250days x 16hrs/day=4000 hrs/year. 4000hrs x 7000 sheets/hr = 28,000,000 sheets x 2 boxes/sheet = 56,000,000 x 5 presses =
Platinum Box is a Canadian company that when started in 1985 specialized in graphic design. In1992 with sales of $5,000,000 and 20 employees the decision was made to have Platinum expand it’s operation to include fold down boxes. By 2005 Platinum’s sales had expanded to $20,000,000 with 75 employees. Jim Hicza, the President of Platinum has announced that the company will be expanding into the United States. This is expected to double Platinums sales in just 3 years.
In order to expand it has been decided Platinum will be required to purchase 5 more presses. Jared John Hicza, Procurement Manager for Platinum Box has been asked to source a supplier for the presses. Their findings have come up with three potential press suppliers that would meet their needs.
Jared will have to provide information to make a recommendation on if Platinum should purchase the new Press’s required from their current supplier (JabaKing, in which they have done business and developed relationships with for over a decade, or to source out another supplier.
Jared findings will recommend they continue their partnership with their current supplier, JabaKing. Jared has based his recommendations on an analysis of each supplier including:
• Environmental and Root Cause Analysis
• Alternatives and Options (Including Total Cost of Ownership Analysis
• Implementation
• Monitor and control
Issue
Provide a recommendation of which supplier to proceed with purchasing five new presses with and what financing method to use in purchase in order to succeed in Platinums expansion into the United States.
Analysis
Strategic reasoning and capacity:
• Platinum plans on expanding into the US market
• Plans on being a full capacity within 2 years
• Projects sales to double within the next 3 years
• Current capacity allows for 280,000,000 boxes per year (250days x 16hrs/day=4000 hrs/year. 4000hrs x 7000 sheets/hr = 28,000,000 sheets x 2 boxes/sheet = 56,000,000 x 5 presses =