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transaction?
Ans:
DMU- Vancouver Plant of British Columbia Box Limited
Initiator: Mr. Paul Flynn, Vancouver Plant Manager(The old machine was old,
needed frequent repairs. So he was looking for a new flexo folder gluer machine
which would combine flexographic printing with folding and gluing operations.)
Users: Plant Workers (Training for the new machine); Archie, Plant
Superintendent and Quality Control Supervisor (The old machine could break
down any day jeopardising the beer business. So they were looking for a new
machine)
Influencers: Mr. Wood, Plant Industrial Engineer (Wood favoured a Bale machine
because of Bales track record in numerically controlled functions); Mr. Ray
Dover, Sales Manager (He could generate an additional 1,000,000 in sales with
the new machine); Archie, Factory Superintendent( If Flynn decided on Andrews
machine, he would get it running); Jack, Maintenance Supervisor ( He was not in
favour of buying from Bale because he did not like the old Bale die cuter at the
Vancouver plant. So he was looking for a non Bale product).
Deciders: Flynn (He had to decide whether to go for Bale which was 20,000$
cheaper or Andrews which had 8 additional features)
Approvers: Canadian Division General Manager, Manager of Engineering Services
(They visited plants to see the machines in action. They had the authority to give
a go ahead to new machine purchase), BCB vice president of Finance (to review
the quotations submitted by suppliers)
Buyers: Manager of Engineering Services ( He was awaiting decision from Flynn
by 4.30 pm on 23rd December to buy the machine), Purchasing Department.
Gatekeepers: Purchasing Agent for the Canadian Division (He was conveying
information on price reduction from Bale to Flynn)
Q2) What type of buy the org is in and how does it affect the purchase?
The buyer in a modified rebuy wants to change product specification, prices,
delivery requirements etc.
In this case, Vancouver Plant was using an old gluer machine which needed
frequent repairs. Flynn was looking for a flexo gluer machine which would be a
high performance combination printing slotting, folding and gluing equipment
that will provide finishing capacity for an additional 20 million square feet board
annually.
Also this requires additional participants on both sides.
Q3)Examine different Stages of buying and analyze what happened. How could
suppliers have responded at each stage?
Problem Recognition
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Flynn and Wood had been conscious of the need for a flexo folder
gler machine which would combine flexographic printing with the
folding and gluing operations.
Wood performed an analysis which showed new machine will lead to
savings on setup time alone, from 36 minutes to 18 minutes and
glue rate, ink rate and jam detection features would mean less
waste, less supervision and a higher quality product.
According to Mr. Ray Dover, the new machine can generate an
additional $1,000,000 in sales.
It will provide finishing capacity for an additional 20 million sq. Ft.
Board annually.
Supplier Search
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Proposal Solicitation
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Suppliers Response:
Supply proposal in accordance with the requirements of the
buyer
Compare the proposals or offers by other suppliers
Try to communicate the special features of their product
Convey the future cost saving benefits the buyer will gain
Supplier Selection
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