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PLASTIC CABLE CLIPS

Group 5
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Dishank Wadhwa
Sanjay Gajja

Shilpa Kevlani

Tanmay Srivastava
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Fisher & Paykel

Largest Manufacturer of Home Appliances Location: Auckland, New Zeland Financials : 8 operating Divisions
Major Appliances: $135000000 Total Sales : $ 270000000 Of this, $36000000 export sales & royalty income

Laundry Division
500 employees 50000 washing machines produced

Looking at the facts


New Washing Machine

Old Machine

New line of Automatic Washing Machines Key Priority- Maintaining Least cost Hope to Produce- 75000 to 100000 new machines 1st yr- 50000 planned production 6 types of ties (total 45) plastic clips to be used in each machine Suppliers to be decided Quotations invited

Used 20 diff. ties ; total 250 ties Plastic Cable buying$ 1250000
$500000 Olson Plastics $500000 Barry Cleaver $200000 GT Rollman $50000 Plastic Distribution

Supplier Analysis
Oslon
$ 500000 order Only New Zealand Manufacturer Supplier from many years F& P among top buyers Quality not high Prices almost double Delivery main concern Lead time- 6-8 months; Unreliable delivery Capacity Issues Government Protection

Barry Cleaver & Sons


$ 500000 order Agent Importing from Japan Service- excellent normally Lead time- 6-8 months Problems in between Now taken permission As Oslon was unable to fulfill Technical expertise

GT Rollman Agent Importing From Australia Excellent Services; Good Delivery In bad times: 3-4 months Urgent Times- 6 weeks Duty Minimum Special provision for new requirements Australia had strong relations

Plastic Distributing Small New Player in New Zealand Gave order in tight times No technical Backup Eager to acquire orders

Selection Criterion

Location- New Zealand or Australia preferable Lead Time Services Costs Involved- Procurement & Storage

Available Alternatives

Oslon

GT Rollman

Old Supplier Protection from Government Issues: Cost, Delivery, Service, Quality Reduced Lead time Excellent service Technical Expertise Issues : Revoking of permission

Barry Cleaver

Excellent Service Fast Delivery Urgent Delivery Reduced Storage costs Duty Costs minimum Australia Preferable choice Issues : Very high cost

Plastic Distribution

Gave order in tight times Eager for orders & performing Issues : New, Small, no technical Epertise

Recommendations

Multi-supplier arrangement Critical Buyer for Oslon


Contact

for negotiating on price, delivery &

service

Contract Majorly with Barry Cleaver Increased order size from GT Rollman
Save

on Storage

Involve Plastic Distribution for more order

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