Scotts Miracle Gro
Scotts Miracle-Gro: The Spreader Sourcing Decision
By
Harvey L. Brooks
Don Billoni
Valarie Haywood
Cynthia Wiley
Procurement 5820
Professor: Dr. Innocent
July 22, 2011
Table of Content
Case Introduction………………………………………………………………….3-4
Statement of Problem……………………………………………………………...4-6
Causes of the Problem……………………………………………………………….6
Decision Criteria and Alternative Solution ……………………………….……7-8
Decision Matrix and Scoring………………………………………………………...9
Recommend Solution and Implementation…………………..……………….…..9-10
Reference Page……………………………………………………………………...11
Appendix A……………………………………………………………………..…..12
Appendix B………………………………………………………………………....13
Case Introduction
This is an in-depth case analysis of the Scotts’ Miracle-Gro Company (Scotts) alternative decisions regarding what to do with the Scotts’ plant based in Temecula, California. The Scotts Company was founded by Orlando McLean Scott in 1868, and was located in Marysville, Ohio. Scotts started its spreader business with the introduction of drop spreaders in 1930. In 1995 Scotts Miracle-Gro was formed after the merger of Scotts and Miracle-Gro making it the largest company in North America’s lawn and garden industry, and the worlds leading supplier and marketer of consumer lawn and garden care products (Gray & Leiblein, 2008). Unlike Scotts, Miracle-Gro had no internal production; all production was outsourced. In 1992, after Scotts acquired Republic Tools & Manufacturing Company, a three building spreader manufacturing plant in Carlsbad, California was provided by the McRoskey family. In 2001, to cut the cost of maintaining three independent buildings, Scotts’ senior management decided that a move to the current facilities in Temecula would be most efficient. Since 2001, Scotts’ manufacturing facilities (which focus on spreader production) have been located in a 412,000 square foot facility in Temecula, California. Under the direction of Bob Bawcombe, plant
By
Harvey L. Brooks
Don Billoni
Valarie Haywood
Cynthia Wiley
Procurement 5820
Professor: Dr. Innocent
July 22, 2011
Table of Content
Case Introduction………………………………………………………………….3-4
Statement of Problem……………………………………………………………...4-6
Causes of the Problem……………………………………………………………….6
Decision Criteria and Alternative Solution ……………………………….……7-8
Decision Matrix and Scoring………………………………………………………...9
Recommend Solution and Implementation…………………..……………….…..9-10
Reference Page……………………………………………………………………...11
Appendix A……………………………………………………………………..…..12
Appendix B………………………………………………………………………....13
Case Introduction
This is an in-depth case analysis of the Scotts’ Miracle-Gro Company (Scotts) alternative decisions regarding what to do with the Scotts’ plant based in Temecula, California. The Scotts Company was founded by Orlando McLean Scott in 1868, and was located in Marysville, Ohio. Scotts started its spreader business with the introduction of drop spreaders in 1930. In 1995 Scotts Miracle-Gro was formed after the merger of Scotts and Miracle-Gro making it the largest company in North America’s lawn and garden industry, and the worlds leading supplier and marketer of consumer lawn and garden care products (Gray & Leiblein, 2008). Unlike Scotts, Miracle-Gro had no internal production; all production was outsourced. In 1992, after Scotts acquired Republic Tools & Manufacturing Company, a three building spreader manufacturing plant in Carlsbad, California was provided by the McRoskey family. In 2001, to cut the cost of maintaining three independent buildings, Scotts’ senior management decided that a move to the current facilities in Temecula would be most efficient. Since 2001, Scotts’ manufacturing facilities (which focus on spreader production) have been located in a 412,000 square foot facility in Temecula, California. Under the direction of Bob Bawcombe, plant