SOURCE SELECTION FOR PRIVATE LABEL PRODUCTS
Coral private label products were purchased from 26 different suppliers. Several sourcing agreements were in contract form, while others were simply an understanding between Coral and the manufacturer. process for developing a sourcing agreement The idea for a potential private began with an internally generated label product once the product idea was approved, Coral announced that it was accepting bids from manufacturing operations that wanted to produce the products. Coral carefully analyzed the potential suppliers to ensure that they were able to provide a consistent product that was comparable in quality to the leading national brands and at a price that would provide satisfactory margins the bid was accepted, Coral and the manufacturing company worked together to develop the final product. Sourcing agreements left the manufacturer responsible for almost all aspects of product development. Based on specifications provided by Coral, these manufacturers generated the artwork for the product, designed the packaging. invested in any necessary equipment, and performed quality assurance. Once the product received final approval from Coral, the company simply placed an order for the product when stocks are required. The order was then delivered F to Corals central warehouse and shipped from there to the retail stores. Consequently this high level of supplier autonomy made annual reevaluation of the sourcing arrangements necessary