Tfc Report
Round 5
Background and introduction
Figure1. The Finance of Round 4
For Round 2, our ROI is 5.51%. Compare with Round 3, our ROI has started to fall about 0.24%. And our gross margin is $1,487,619 also lower than Round 3 ($1,507,359). In general, our company’s profit is basically flat with the previous round.
Purchasing
Problem
Purchasing department is important because it can cost reductions and increasing profits. Thus, a good supplier is very important in the process of sourcing. Delivery reliability is one of the standards to determine whether a supplier is good or bad.
Figure2. The Percentage of Delivery reliability suppliers
In Round 4, NO8DO Mango wasn't up to par. It has the lowest percentage of delivery reliability about 91.4% and far less than the highest percentage of Arancia d'Espana with 98.3%. Moreover, Brit Pcak is 93.3%, Philyp Jones Plastics is 95.6% and All Vitamin is 95%.
Agreed delivery reliability | Brit Pack | Philyp Jones Plastics | AIL Vitamins | NO8DO Mango | Arancia d'Espana | Round 4 | 94.0% | 97.0% | 96.0% | 94.5% | 98.5% |
Table1. The Summary of Agreed Delivery Reliability
From this table, we can know that all the suppliers cannot achieve the desired effect.
Decision
In view of the above, we took some measures. For NO8DO Mangao which the supplier needs to take measures. We have two ways to solve these problems; contract a supplier with a higher reliability of supply, or increase the safety stock in order to cover the uncertainty. After a series of discussion, we finally decided to increase the safety stock in order to cover the uncertainty. Because if we contract a new supplier will face a huge risk lead to some serious consequences. Furthermore, we decided to adjust agreed delivery reliability with other suppliers.
| Brit Pack | Philyp Jones Plastics | AIL Vitamins | NO8DO Mango | Arancia d'Espana | Agreed delivery reliability | 94.0%-94.0% | 97.0%-96.5% |
Background and introduction
Figure1. The Finance of Round 4
For Round 2, our ROI is 5.51%. Compare with Round 3, our ROI has started to fall about 0.24%. And our gross margin is $1,487,619 also lower than Round 3 ($1,507,359). In general, our company’s profit is basically flat with the previous round.
Purchasing
Problem
Purchasing department is important because it can cost reductions and increasing profits. Thus, a good supplier is very important in the process of sourcing. Delivery reliability is one of the standards to determine whether a supplier is good or bad.
Figure2. The Percentage of Delivery reliability suppliers
In Round 4, NO8DO Mango wasn't up to par. It has the lowest percentage of delivery reliability about 91.4% and far less than the highest percentage of Arancia d'Espana with 98.3%. Moreover, Brit Pcak is 93.3%, Philyp Jones Plastics is 95.6% and All Vitamin is 95%.
Agreed delivery reliability | Brit Pack | Philyp Jones Plastics | AIL Vitamins | NO8DO Mango | Arancia d'Espana | Round 4 | 94.0% | 97.0% | 96.0% | 94.5% | 98.5% |
Table1. The Summary of Agreed Delivery Reliability
From this table, we can know that all the suppliers cannot achieve the desired effect.
Decision
In view of the above, we took some measures. For NO8DO Mangao which the supplier needs to take measures. We have two ways to solve these problems; contract a supplier with a higher reliability of supply, or increase the safety stock in order to cover the uncertainty. After a series of discussion, we finally decided to increase the safety stock in order to cover the uncertainty. Because if we contract a new supplier will face a huge risk lead to some serious consequences. Furthermore, we decided to adjust agreed delivery reliability with other suppliers.
| Brit Pack | Philyp Jones Plastics | AIL Vitamins | NO8DO Mango | Arancia d'Espana | Agreed delivery reliability | 94.0%-94.0% | 97.0%-96.5% |