Richardson Essay

806 Words4 Pages
What are the order winners for Unifine Richardson – i.e., why would customers buy from Unifine Richardson? How can you tell? Unifine Richardson (“UR”) is a food producer that manufactures salad dressings, ice-cream toppings, sauces and syrups. A key raw material for its products is honey, which was sourced from China at $1.08 per pound. UR supplied its products to the food service market, retailers and industrial customers. Eighty percent of UR’s honey sales were to a large franchis e retail operator for use as dipping sauce. Being a large franchise retailer, it had tough quality standards and demanded product consistency. Besides, it also purchased several other products from UR, therefore was an important customer. UR was considered to be a worthy producer and as a result had good clientele. IT bought 1 million pounds of honey annually, therefore was a large producer. It is mentioned in the case that a key client of UR was a large franchise retail operator that not only procured honey from UE but also several other products. This tells us that customers trusted UR for its product quality and consistency. What options should Rob Pincombe consider and which of these options would you recommend to Pincombe if you were hired as a consultant? Why? Rob Pincombe is faced with a tough decision regarding sourcing of Honey in light of recent government regulations, which has imposed a ban on importing honey from China. China is a major producer of Honey and UR has been using a blend of Chinese-Canadian honey. As a result, there is a shortage of honey and prices of Non-Chinese honey have gone up significantly. There is also a concern of product availability regardless of price. Harrington Honey (“HH”)– the only supplier of UR has limited stock (1 month) and has presented 3 options to UR. 1. To buy 100% pure Canadian honey @ $1.75 per pound 2. To

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