Loren Inc Case Study

728 WordsApr 6, 20153 Pages
! ! Organization Background ! Inc. was a subsidiary of larger international chemical company in Canada. The company deals in Loren Loren Inc. – Case Study selling both consumer and industrial products with an excellent reputation for quality products and marketing effectiveness. As a result, they have substantial growth in total sales and financial success. The total sales in Canadian Market were approximately $800 million and $400 profits after tax. ! ! Defining the Issue ! purchasing department worked with the suppliers to come up with a single bid policy that would benefit The both parties by following the company’s purchasing policies and practices. The purchasing department was composed of 12 staff and one of them is Brent Miller who has been appointed as a raw materials buyer reporting to the manager of the chemicals buying group. His tasked is to select the desired suppliers that would supply Hexonic Acid to the company. Selecting a reliable and dependable supplier is not an easy task for Brent especially Hexonic Acid is a major raw material in most Loren products. The company’s requirements to this raw material had grown steadily over the years and were expected to remain significant in the years to come. The problem here is that the availability of this material in the marketplace was difficult to predict. There had been shortages of this material two years previously due to European and Japanese demand. Recently, the hexonic acid cycle had turned around. Hexonic acid demand had eased and recent plant expansions by a number of suppliers had been completed. The overall result seemed to be a building of excess hexonic acid inventories. Thus, this would be reflected in a buyer’s market in the coming year and looked forward to quotes from all potential suppliers. ! Analyzing Case Data ! you analyze the historical outlays between the two suppliers,

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