Supply Chain Negotiation Essay - 1717 Words

Assignment Sheet for Case Study: Negotiation - Porto This case is written by the authors of your textbook, Purchasing and Supply Chain Management, but may have been edited for our use in this course. This is a TEAM assignment. Read and discuss this mini-case and answer the 5 questions at the end of the case. In this manner, you will develop a negotiation plan for the buyer. The very best way to approach this team case is to work on all aspects (each question) of this case together. If you simply divide up the questions and assemble individual answers, you will not have the best learning experience. Only ONE member should post the case analysis for the team. Your analysis must be posted to SAFE ASSIGNMENTâ„ ¢ on our Blackboardâ„ ¢ site†¦show more content†¦Computer manufacturers compete fiercely for contracts based on meeting the technology, quality, and price requirements of customers. Profit margins and return-on-investment targets are almost always under pressure. Dell Computer recently saw its operating margins slip to a slim 7%. Most computer manufacturers have programs designed to improve quality and reduce the costs associated with their products. One strategy that many producers use is to contract only with high-quality suppliers and to develop longer-term buyer-supplier relationships. One major computer company, Porto, also initiated a program requesting suppliers to continually improve productivity, which should lead to cost reductions. The objective of the program was to reduce purchase costs over the foreseeable future. Porto also expects its suppliers to contribute cost-saving ideas whenever possible. The high-technology industry features high fixed costs due to large investments in plant and equipment. These companies also commit large expenditures to research and development. Porto currently has a requirement for an electronic component termed â€Å"New Prod†, which is part of a recently designed product. The estimated volume requirement of New Prod is 200,000 units with additional follow-on orders likely. For the New Prod component, Porto felt there were five to eight highly competitive suppliers capable of producing the item. These suppliersShow MoreRelatedDistribution Strategy1359 Words   |  6 PagesPhilippines decided to take over the Wholesale role of San Fabian (SF) and would participate directly in large Commercials as well as Government Projects. Accordingly MP (MacDowell Philippines) products line will be made available to Construction Supply dealers across Philippines. MP claimed to be forced to take that step to help increasing Sales since they experienced an operation capacity around 50%. Situation Analysis As Mr. Paul Cheng _ President of SF was looking at that situation imposedRead MoreRenault Case1514 Words   |  7 Pagesdiscussion. 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