Sorenson Research Company

3123 Words13 Pages
SORENSON RESEARCH COMPANY Company Overview Sorenson, a medical research company founded by James Sorenson in 1970s, specialized in the production of catheter and catheter support devices. Their two main products REGUFLO and TRUSET were very popular in the market. Market reaction to these two new products was such that Sorenson expected growth to significantly increase in 1977 and beyond. Sorenson looked to reduce inventory cost that tied up their balance sheet in order to maintain customer satisfaction and reduce cost. Sorenson was focused on specialized and high technology niche products. The company was a major manufacturer for catheter and catheter device and the demand price for their products were not price sensitive but competed on market price against its competitors. Since the company did not sell the standard commodity products, sales efforts bypassed the traditional hospital purchasing channels but focused on selling directly to the medical professionals. Generally, the cost of these products were charged to the individual patient account. To stay competitive with rival companies, Sorenson promoted a comprehensive service program that assured prompt deliveries within 24 hours to major hospitals. To accomplish this goal, a twenty three warehouse network system was to store products and ensure to meet hospital demands. Sorenson’s twenty three warehouse network were strategically located across the US to meet the hospital demands, of which eighteen were labeled as “major”, three as “minor” and two as “garage.” Major warehouses had more complete product line with sophisticated communication equipment that carried an average inventory stock worth $156,000. While, minor warehouses maintained an average inventory stock of $40,000 and garage warehouses kept “emergency stocks” valued at $10,000. These warehouses were necessary because hospitals are not

More about Sorenson Research Company

Open Document