Q1 : What are all the issues here, from both CJI’s and Caollin’s perspectives, that
need tobe researched by Ms. Stanley? Tell me the facts Concerned about the
current supplier will able to increase output. Negotiated contract with Great Lakes to
supply pumps. One issue, they have to get together with Caollinpumps to figure out
if can up their output. What is capacity? What is desire? Should have figured out
before signing contracts.Jumped the gun signing the contracts. Should they have
jumped the gun? Or let someone else take?Worth it for CJI to make or buy? Do a
make/buy analysis.Other two suppliers. Have they evaluated other suppliers? Get
other performance data from Caolinn.Is 9 months long enough to setup shop?
Q2 :
Should CJI continue to use Caolinn to supply pumps, should it make them in-
house,should it contact one of the other suppliers, or should it do some combination
of thesealternatives? Discuss the advantages, disadvantages, and risks of each of
thosealternatives. Long term agreement with CJI?If the price is right.What should
CJI do?Should they continue to use caolinn?YesMaybe, add another supplier. Other
suppliers don’t need to know about other suppliers. Some cases, it would be good
to let them know , be straightforward. Maybe, take all three, take internal, take CJI,
take other suppliers, do a mpv, after 5 years,make determination of who’s the best
and come up with one solution. Not much choice for Caolinn. Caolinn can say that
they can supply up to a certainamount and then that’s it.
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Transportation costs can decrease if there is a better transportation system. If
scheduledproperly.Think that they would want local business. Depends on capacity
of the supplier.Could buy out Caolinn. Cost 500,000 to make pumps in house.
Advantage, take fullcontrol. Disadvantage, less focus on real business. Possible
quality problem.Most risky thing to do?Nothing. Go with a unknown supplier. Make
in house, no idea on cost, no idea on quality. Least experience on making in house.
Q3 : How can CJI assure continued contract compliance and additional contract
businessfrom Great Lakes in the future? Meet Great Lakes demand.Short term -
Need to meet great lakes demand.Long term, worry about quality. Develop excess
capacity.Need to evaluate suppliers. Need to develop a better relationship. Develop
performancemeasurement system. Monitor ongoing performance. Document their
processes.Need to integrate supply chain with supplier. Get embedded. Work on
customerrelationship management. Guarantee future business. Let them know that
they are aloyal customer. Hook up with customers in the long term.