Case Study 1: Pacific Healthcare

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Case Study 1: Pacific Healthcare TLMT313: Supply Chain Management xxxxxxxxxx xxxxxxxxx Pacific Healthcare is the largest health care provider for the Santa Barbara County, the facilities consist of Pacific Memorial, Pacific Cabrillo and Pacific Isla Vista hospitals along with two nursing homes and ten outpatient clinics that deliver a service for over 1,500 beds. The major fact is that Mr. Barney Rubble is the corporate director of supply management and is responsible for procuring all supplies for Pacific Healthcare. This makes Mr. Rubble hold a very important position within the company as he must purchase goods and supplies at the right price with the cheapest solutions and prices. The major problem was that Mr Thurston Howell, the director of radiology refused to authorize any other X ray film other than that of Kodak. His passing away gave the opportunity to Mr. Rubble to regain his authority; which he should never have degraded his position in the first place, as Mr. Rubble is responsible for procurement and a director radiology should not have the authority to rule over the decision making of the corporate director. In my opinion Mr Howell policy for procuring goods was not open and transparent, it seems that he was influenced by Kodak to dominate the market. This is not good procurement procedures to let a supplier corner the market by offering equipment, maintenance and service at a discount as this information must be outlined within the contract before Pacific Healthcare agrees to do business with any supplier. Kodak also stated that if Mr Howell choose to use another X-ray film supplier they would refuse to provide these services. Manufacturing X-ray film price per sheet Kodak $1.80 Agfa $1.58 Dupont $1.50 Fuji $1.40 3M $ 1.35 Procurement policies must include the need for basic procurement standards and requirements to be met, these are important
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