Allen Park Powder Procurement
Essay by John Astudillo • April 23, 2019 • Case Study • 1,448 Words (6 Pages) • 1,403 Views
PROCUREMENT
CASE STUDY: ALLEN PARK POWER
SUBMITTED BY: JOHNOEL ASTUDILLO
INSTRUCTOR: SULMAN HAIDER
DATE: APRIL 17, 2019
Table of Contents
EXECUTIVE SUMMARY1
INTRODUCTION2
ISSUES IDENTIFICATION3
ENVIRONMENT & SWOT ANALYSIS4
ROOT CAUSE ANALYSIS5
ALTERNATIVES &OPTIONS6
RECOMMENDATION7
MONITOR AND CONTROL8
APPENDIX9
REFERNCES10
EXECUTIVE SUMMARY
- April Song, VP of Supply Chain Management at Fashion Unlimited in Toronto, has been tasked with researching offshore production locations for the company’s clothing line. The purpose of this report is to identify and evaluate a potential country for expansion. The challenge is developing an evaluation grid and then evaluating each country whilst trying to satisfy the criteria provided by Executive Team members. New CEO, Elizabeth Jennings, with a background in ‘Fast Fashion’ was brought on several months ago. This has indicated a new shift in focus for Fashion Unlimited.
INTRODUCTION
- Allen Park Power Ltd. (APPL) was founded in the early 1900’s as a municipal power company for the city of Allen. The company provides electrical generation, transmission, distribution and sales for the citizens and industries of Allen Park.
- In 1997, city council saw an opportunity to enter in a non-regulated international market. With an impending deregulation, council restructured the department into a separate corporation. By 2008, they were operating in Australia, the United Kingdom, and the United States as separate business units.
- Graham Link, Director of Supply Chain Management was tasked with leading a team in planning the outsourcing of business-related IT Systems; such as, Accounting, payroll, humans’ resources and purchasing. He has also been asked to examine other areas for potential outsourcing.
- Reg Borkowski replaced Randall Chu following their retirement in 2009. Reg comes from a legal background and has years of experience working in quasi-public sector. He has been brought in to tackle international projects and to become a major Canadian player through continued growth using private sector methods.
ISSUES IDENTIFICATION
ISSUES | IMPACT | URGENCY | |
SHORT-TERM | Carlyle on strike | Unable to supply transformers at the rate of demand. Creating delays in construction. Transformers entering starvation sate. | 1 |
Transformer supply & demand | Transformers are rushed ordered. News reaching local business media – no longer low profile | 2 | |
Sellers market in electrical equipment | Alternative suppliers charging 40% markup from original bid. | 3 | |
LONG -TERM | Financial squeeze – cost to produce | Price for electricity, steel and copper continue to rise significantly resulting higher manufacturing costs | 1 |
Decreased bidding pool | Reduced competitiveness from suppliers to bid on projects <$250,000. | 2 | |
Greenhouse reduction | Bid criteria include environmental factors. Transportation savings vs. environmentally friendly products offered in global market. | 3 |
ENVIRONMENT & SWOT ANALYSIS
FAVORBALE | UNFAVORABLE | |
INTERNAL | STRENGTHS:
| WEAKNESSES:
|
EXTERNAL | OPPORTUNITIES:
| THREATS:
|
With a limited supply of electrical generator plants and an increased demand for electricity in industrial and retail industries, the price for wholesale electricity will rise steadily. In addition, the price for copper and steel has significantly impacted the cost to produce transformers.
ROOT CAUSE ANALYSIS
1. Carlyle on Strike – Halt in Transformer Production
2. Transformer Supply & Demand
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