Case Study Written Report
1. Executive Summary 2. Issue Identification 3. Environmental and Root Cause Analysis 4. Alternatives 5. Recommendations 6. Implementation 7. Monitor and Control
Executive Summary: - Rob Pincombe, is a purchasing manager at Unifine Richardson. He is responsible for procurement of honey from all suppliers, here Main Supplier is china. Unifine Richardson is a manufactured company which one manufactured the salad dressings, ice cream topping, sauces and syrups. Unifine Richardson purchased one million pounds of honey annually. In this company, almost of all honey purchases were for a 50-50 blend of Chinese and Canadian honey which has cost $1.08 per pound. Unifine Richardson transformed all honey into smaller packages.80%
Issue Identification:- The Main issue Unifine Richardson was facing their sole honey supplier, Harrington Honey (HH), will run out of Chinese honey in a little over a month .because the Canadian Food Inspection Agency recently has found traces of chloramphenicol that was banned antibiotic associated with causing a sometimes-fatal blood disorder and rejected the contaminated honey. Unifine Richardson cannot sell any of its current Chinese-Canadian blends until China does not find a way to detect contaminated honey.
Environmental and Root Cause Analysis: - Unifine Richardson buys about one million pounds of honey annually. The world supply of honey has decreased by about 20%. Currently, the company pays $1.08 per pound for the Chinese-Canadian blend honey. Harrington Honey provided UR with three alternative sources of honey:
1. Canadian-Argentinean blend. a. Cost: $1.42 million (a 31% cost increase).
b. Customers may reject because flavor is significantly different from current honey blend. c. Argentina is world’s third-largest honey supplier.