Question.4725 - CASE STUDY: SURPLUS STYLESSurplus Styles is a manufacturer of hair care products, including shampoos, conditioners, and hair gels. The company, located in Southern California, bottles the shampoos and other various hair products in their manufacturing plant, but sources the content from a number of chemical suppliers. The company has historically competed on cost and has used competitive bidding to select suppliers and award yearlong contracts. The Director of Sourcing, Derick M. Frizzle, has managed the competitive bid process for the past 10 years, having moved up the ranks from purchasing. He was particularly proud that the company was cost-competitive in its market segment.One recent day the president of the company, Frederick Davenport, called for a meeting with Mr. Frizzle. Derick could tell from the tone of Davenport's message that the meeting would be accompanied by less-than-stellar news. As Derick took the infamous ride up the wood-paneled elevator with green marble floors to the top of their office building, he contemplated what he could have possibly done wrong. He had followed the same type of supplier bidding process for years and the company was doing well financially. He was anxious to hear what Davenport had to say.Derick entered Davenport's vast office, a room highlighted by ceiling-to-floor windows. He could see Mr. Davenport sitting at the end of the long, dark wooden table, with each one of his two aides accompanying him on each side. The man on the right was Bo Jenson and the woman on the left was Gertude Masterson; neither were taken lightly within the company. Derick could always tell when it was going to be a bad day.“Darn hippies,” Davenport rumbled. “Bo and Gertude have some troubling news. This swing towards animal rights and ‘quality goods’ is about to cost me a lot of money,” Davenport continued, making mocking “bunny ears” with his bulbous index and middle fingers. “Apparently market trends are changing again and not for the better.” Davenport continued to explain that there was going to be a change in the competitive strategy of the firm. The competition in the hair care market had become fierce and there was greater focus on quality. Specifically, the recent trend in animal rights and natural, organic products meant ensuring that the shampoo content did not go through animal testing and that it was ensured to be hypoallergenic. The current products were produced to compete for price and did not agree with the new demands. Davenport wanted to see products on the retail shelf with this quality standard as soon as possible. “Do it,” Davenport continued and sat back down. This concluded the meeting. Luckily Mr. Frizzle had an easy exit as he had only gotten one foot in the door before his task was demanded.Derick M. Frizzle was rather pleased with his new detail as he cared greatly for nature and had always refrained from purchasing his own company's products due to their lack of consideration for both the individual and the environment. However, Derick was now confronted with a problem. His current suppliers offered the lowest cost in the business and would likely not be able to provide the needed quality assurances. His expertise had been in procuring the least expensive ingredients available and he did not know where to begin changing his sourcing practices.CASE QUESTIONSIdentify the steps that Derick should take to solve his problem.Should Derick ask for the required changes from the current suppliers? If they do not comply, should he solicit new suppliers? How might he do this?Should Derick go through a competitive bid in the future? If so, should he do it for all purchased products or just some products?What are the differences when looking for suppliers to meet cost standards versus quality standards?REFERENCESCohen, Shoshanah, and Joseph Roussel. Strategic Supply Chain Management. New York: McGraw-Hill Company, 2005.Lambert, Douglas M., and A. Michael Knemeyer. “We're in this Together.” Harvard Business Review, December 2004: 114–122.Sengupta, Sumantra. “The Top Ten Supply Chain Mistakes.” Supply Chain Management Review, July–August 2004: 42–49.Takeuchi, Hirotaka, Emi Osono, and Norihiko Shumizu. “The Contradictions that Drive Toyota's Success.” Harvard Business Review, June 2008: 96–105.
Answer Below:
To xxxxxxx Derick's xxxxxxxxxx at xxxxxxx Styles xxxx are xxxx steps xxx insights xxxxx to xxxxx the xxxxxxx Derick xxxxxx start xx researching xxxxxxxxx specializing xx organic xxx hypoallergenic xxxxxxxxxxx He xxxxxx also xxxxxxxx collaborating xxxx suppliers xxx are xxxxxxxxxxx in xxxxxxxxxxxx products xxxxxxxxxx new xxxxxxxx for xxxxxxxxxx suppliers xxxxx on xxxxxxx standards xx crucial xxxxxxx with xxxxxxx Suppliers xxxxxxxxx Derick xxxxxx ask xxx current xxxxxxxxx if xxxx can xxxxx to xxx new xxxxxxx standards xx they xxxxxx comply xx should xxxxxxx new xxxxxxxxx through xxxxxxxx networks xx trade xxxxx focused xx natural xxxxxxxxxxx This xxxxx involve xxxxxxx Requests xxx Proposals xxxx or xxxxxxxx for xxxxxxxxxx RFQs xx identify xxxxxxxx vendors xxxxxxxxxxx Bidding xx the xxxxxx While xxxxxxxxxxx bidding xxx still xx useful xxx standard xxxxxxxx Derick xxxxxx prioritize xxxxxxx over xxxx for xxxxxxxxxxx products xxx these xx might xxxxxxxx negotiating xxxxxxxx with xxxxxxxxx who xxxx a xxxxxx track xxxxxx in xxxxxxx and xxxxxxxxxxxxxx formulations xxxxxxxx and xxxxx Steps xxxxxx must xxxxxxxxx potential xxx suppliers xxx negotiate xxxxx with xxxx ensuring xxxxxxx and xxxxxxxxxxx He xxxxx also xxxxxxxx engaging xxxxxxxxx that xxxx the xxxxxxxx to xxxxxxx certifications xxx cruelty-free xxx organic xxxxxxxx Negotiation xx Quotes xxx many xxxxxxxxxxxxxx suppliers xxxx wiser xx negotiate xx opposed xx getting xxxxxx from x list xx many xxxxxxx Such x situation xxxxxxx tremendous xxxxxxxxxxx for xxxxxxxxxxx solutions xxxx vs xxxxxxx Cost xxxxxx to xxxxx and xxxxxxxxxx quality xxxxx product xxxxxxxxxxx traceability xxx adherence xx other xxxxxxxxx such xx cruelty-free xxx organic xxxxxxxxxxxxxx Therefore xx necessitates x more xxxxxxxx evaluation xxxxxxx and xxxxxxx translates xxxx higher xxxxx associated xxxx expensive xxx materials xxx stricter xxxxxxx of xxxxxxxxxx Quality xxxxxxx in xxx cosmetics xxxxx is xxxx important xx complying xxxx the xxx and xxxxxxxx high-quality xxxxxxxx Aripin xx al xxxxxx chain xxxxxxxxxx could xx improved xx implementing xxxxxxx best xxxxxxxxx like xxxxxxxxxxx data xxxxxxxxxx and xxxxxx supplier xxxxxxxxxxxxx Specright xxxxxxxxxxxxx vendor xxxxxxxxx has xxxxxx on xxxxxxxx for xxxxxxx capability xxx delivery xxxxxxxxxx Brard xxxxxxxxxx Aripin xxxxxx Ahmad xxxx Total xxxxxxx Management xxx Supply xxxxx Integration xx Firm xxxxxxxxxxx A xxxxx of xxxxxxxx Industry xx Jakarta xxxxxxxx Journal xx Science xxxxxxxxxx and xxxxxxxxxx - xxxxxxxxx Supply xxxxx Management xxxx Practices xxx the xxxxxxxxx Industry xxxxxxxxx from xxxxx www xxxxxxxxx com xxxx cosmetics-supply-chain-managementTaherdoost x Brard x Vendor xxxxxxxxx in xxxxxx Chain xxxxxxxxxx A xxxxxx Journal xx Supply xxxxx Management xxxxxxx -More Articles From SCMG201 Principles of Supply Chain Management
.ico)
.ico)
.ico)
.ico)
