Platinum Box Case Study
The new business venture to produce quality boxes for the U.S market has created a requirement for Platinum Box to source five new presses. The three bids to supply these presses were from Merakuri, Jabaking and Pnutype. Each bid had its attributes over the other.
Finding a way to fairly evaluate each bid was needed. A Weighted Evaluation System was chosen. Four factors were used to evaluate the bids. They are: Performance & Quality, Service, Price (total cost of purchase determines the pricing factor) and Financing. By applying a value to each, a better evaluation of the bids can be made.
Performance & Quality was perceived to be of utmost importance to the point where the success of the project depended on it. …show more content…
Alternative or Options
1. Staying with current supplier to keep the relationship and purchase the product that will outlast any of competitors. The proximity of the supplier will assist in repairing the equipment promptly. However, JabaKing does not produce the highest quality product. It has higher operating costs and produces fewer sheets than the competition. All of which will affect the competitiveness and progress into the expansion into the US market. Staying with the current supplier will create potential risk. If there is a strike, the company will be affected by not having maintenance and repairs done on time.
2. Choosing Pnutype as a supplier. It will ensure the company has purchased the latest technology that is also environmentally friendly. Annually produces biggest costs savings among three suppliers $3.75 million. In addition produces extremely high quality product. On the other hand the company has only been building presses for only 2.5 years. Technology has not been tested beyond those years, and therefore output and quality could deteriorate with the aging of equipment.
3. Choosing Merakuri as a supplier. Produces highest quality product with the capacity of 150 cm per sheet. This can make a very strong product that can be marketed within the US. Produces 25% more product per hour then the closest competition which will save on labour costs. . If going forward with this supplier will save company annually $2.5 million. In addition the