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Case Study analysis
首先，价格要合理，交货准时在每月100000的速度没有超额或回订单允许。第二，产品质量要符合卡拉威公司的要求，每批产品的数量应为可靠性测试提供。第三，为了支付，为了保证产品质量，避免零件失效，为了保证产品质量，必须对订单的百分之五的订单进行支付。第四，供应商提供的产品应该能够正常运行一年，保修应包括在工艺和有缺陷的零件或部件的缺陷。
第五，卡拉威公司保留取消订单30天通知的权利。最后但并非最不重要的，所有的设计变更，应经适当的人员或代理人的卡拉威电子公司之前，他们付诸实践。上述原则应是汤姆坎宁安评价标准，供应经理，从三个不同的供应商提供的方案和谈判的条款在保证自己公司的利益由他们提供建议。三供应商，其中城堡，鹰和Apache，Apache提供的价格是最低的，最有竞争力的。此外，成本和价格数据表7中显示也表明Apache以直接人工、铅厂的开销，模具的总结，运输和包装。此外，基于学习曲线需要500000单位的量，三个供应商之间的生产率最高的属于Apache可以在整个生产过程中达到7倍生产力的提高则只能达到5和2，分别在城堡和鹰倍。
Based on the requirements of the selected portions of Callaway Bid displayed in Exhibit 5, seven conditions that listed should be considered when the Callaway Company is evaluated its suppliers. Firstly, price should be reasonable and the delivery should be punctual at the rate of 100,000 per month with no overages or back-orders allowed. Secondly, the quality of products should meet the demands of Callaway Company and a certain amount of units from each batch should be supplied for reliability testing. Thirdly, for the payment, five percent of the value of the order is required to hold to pay later in order to guarantee the quality of products and avoid part failure. Fourthly, the products offered by suppliers should be able to operate properly for a period of one year and the warranty should cover defects in workmanship and defective parts or components.
Fifthly, Callaway Company reserves the rights to cancel the order with 30 days’ notice. Last but not the least, all the design modification should be approved by appropriate officer or agent of Callaway Electronics Company before they are put into practice. Those principles mentioned above should be the evaluation criteria for Tom Cunningham, the supply manager, to judge the proposal offered by three different suppliers and negotiate which terms and clauses offered by them in the proposal to guarantee the interests of his own company. Among the three suppliers, namely Castle, Eagle and Apache, the price offered by Apache is the lowest and the most competitive. Besides, the summary of cost and Price data displayed in Exhibit 7 also indicates that Apache takes lead in direct labor, factory overhead, tooling, transportation and packaging. In addition, based on the learning curve and required amount of 500,000 units, the highest productivity among the three suppliers belongs to Apache since it can reach 7 times productivity increase during the whole produce process while it can only reach 5 and 2 times in Castle and Eagle respectively. Apart from the price, there are several conditions mentioned in three proposal that are violated from the requirements of Callaway Electronics Company so that Tom Cunningham manager should be negotiate with them concerning on these terms. For Castle, the right of Callaway Company to cancel the order with advance notice is not offered which is quite different from the requirement. Therefore, this term about order cancelation and loss compensation should be discussed. In addition the fees of changes in design, the exact number of products for reliability tests and the specs of these tests should also be clarify during the negotiation. For Eagle, the period to warn on cancellation is requested to be too long and the associated incurred financial costs and responsibility should be discussed to clarify. Besides, the cost of products that are offered for reliability test should be free instead of be charged according to the requirement, so this term should also be discussed. For Apache, the compensation of cancellation clause is too high for Callaway Company. In addition, the fee for resign because of specification changes is also negotiable. What’s more, the reserve right of Apache to re-decide the price may harm the interest of Callaway Company. Last but not the least, the inventory rate and delivery amount is also different from the requirement of Callaway Company. In sum, for Apache, the above four terms are needed to be discussed. Which one of the supplier is the best and the most suitable is still hard to decide. However, if all the negotiations with suppliers about the terms conduct smoothly, Apache seems to be the best choice for its competitive advantage in price and productivity with high quality. |
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