Unifine Richardson Case
Executive Summary- This report will evaluate an analyze Unifine Richardson’s current purchasing strategy. The company currently purchases approximately one million pounds of honey per year. A majority of the purchased honey is a 50-50 blend of Chinese and Canadian honey. Unifine Richardson’s main honey supplier is Harrington Honey. Unfortunately, Harrington Honey has informed Unifine Richardson that they can no longer supply the company with honey from China. Harrington Honey’s decision to stop importing honey from China was based on China’s use of chloramphenicol, which is an antibiotic that is band for use in food-producing animals. As a result of the Harrington Honey’s decision to stop importing honey and not having secondary supplier, Rob Pincombe (Unifine Richardson’s purchasing manager) must make a decision on how to proceed. Because he does not have a secondary supplier which I think is the root of his problem, Rob has to make a decision based on the following analysis points:
• He has a small window to make a decision
• Honey expenditures make up 3 to 5 percent of the firms total expenditures
• He must analyze the other import options o Canadian only will cost $1.75/lb. o US only will cost $1.10/lb. (US dollar) o 50/50 Argentina/Canadian cost $1.42/lb.
US imposed a tariff tax on Argentina honey
There’s a chance that the honey for Argentina may be recalled
n by management. Recommendations discussed include:
Problem Statement: In spite of meeting the company’s current delivery schedule, there are several issues that must be addressed by the Quality Assurance Director and the company’s other directors. As indicted by the General Manager there is, “lack of a quality attitude in the plant”. Because of that lack of quality Below are some of the identified issues;
1. Quality Processes are not being followed
2. Operations personnel are not properly trained to operate machinery
3. Maintenance personnel are not performing the
• He has a small window to make a decision
• Honey expenditures make up 3 to 5 percent of the firms total expenditures
• He must analyze the other import options o Canadian only will cost $1.75/lb. o US only will cost $1.10/lb. (US dollar) o 50/50 Argentina/Canadian cost $1.42/lb.
US imposed a tariff tax on Argentina honey
There’s a chance that the honey for Argentina may be recalled
n by management. Recommendations discussed include:
Problem Statement: In spite of meeting the company’s current delivery schedule, there are several issues that must be addressed by the Quality Assurance Director and the company’s other directors. As indicted by the General Manager there is, “lack of a quality attitude in the plant”. Because of that lack of quality Below are some of the identified issues;
1. Quality Processes are not being followed
2. Operations personnel are not properly trained to operate machinery
3. Maintenance personnel are not performing the
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