Evolution of Supplier Relationships
9/16/2012
Group 3
PHILIP CORRADINI (IE/15/009)
KAMALIKA GANGOLY (PGP/15/019)
S. SIDDHARTH (PGP/15/048)
DEVINA BHASKAR (PGP/15/082)
APOORVA GOYAL (PGP/15/130)
MADHURI MUKHERJEE (PGP/15/155)
AMARENDRA (PGP/15/202)
DHANANJAY JANARTHANAN (PGP/15/216)
GAUTAM S (PGP/15/277)
S. HARIPRASAD (PGP/15/314)
HISTORY OF RCI
1946 – Mark Schwartz founded a motor repair business and secured a GE franchise for component parts. He was instrumental in bringing about a service innovation by exchanging fully working motors with customers who came in for repairs of their broken down motors. He then repaired them and replenished his motor inventory.
1962- GE’s General Purpose Control operation developed a new contactor for its air-conditioning and refrigeration business. Mark Schwartz attained the rights to exclusively distribute these contactors to the aftermarket through air-conditioning and refrigeration wholesalers.
1963 – RCI had demonstrated to GE that they could get GE’s products to market, with the parts moving from master distributors to wholesalers and ultimately service repair persons. RCI also worked in the direction of providing new innovations in terms of packing and product innovations as well. Mark Swartz worked with GE engineers and through this inputs in developing innovations, RCI continued to distribute these models exclusively.
1974 – Danny Swartz takes more responsibility and starts taking all the day-to-day business decisions.
Some of the key values which RCI followed were * Working by developing a relationship of trust and faith with suppliers. They did not have any formally drawn contracts. * Demonstrating to the suppliers how difficult distribution was and how RCI’s competencies could not be replicated.
CURRENT SYSTEM
The current position of RCI was as follows:
RCI distributed over 6000 electrical and related products earning revenue of $ 35.8 million and with