Platinum Box Case Study

Case Study #3 – Platinum Box

Module 2 – Session #8

March 24th 2015

Alex Statten

Contents

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EXECUTIVE SUMMARY

ISSUES IDENTIFIED

Platinum Box is aiming at expanded sales to the U.S. In order to do so, myself and my team must purchase 5 new printers. Our primary goal is to have the capacity of printing an extra 500,000,000 boxes per year in order to satisfy this new market.

Our procurement team has identified 3 potential suppliers of printers that meet our capacity goals, and we must choose which suppliers to purchase from.

We have two options when purchasing: use one single supplier, or a combination of two or more suppliers. Since each supplier provides a unique product, there are various elements to be considered. Before deciding, we must take into consideration price, production output capabilities, history with our current supplier, financing options, and the lifespan of each supplier’s product.

In order to aid in our selection process, our secondary goal is to decide as to what extent we will investigate the operations of each company. There is an opportunity for us to visit each location in order to better understand the working conditions and overall processes that each company has. Will visiting three locations be worth the time and money involved?

ENVIRONMENTAL AND ROOT CAUSE ANALYSIS

QUANTITATIVE ANALYSIS

The following is a direct quantitative comparison between Merakuri Luxo, JabaKing, and Pnutype.

Merakuri Luxo 10000 | JabaKing | Pnutype |

Most modern | Close proximity | Newest technology |

Highest Standard | Disposes of old presses | Extremely high quality output (unproven) |

Distributer in Vancouver | 3 year warrenty on Parts | Located in Fayetteville, NC |

Next day Maintenance Service | Relationship with President | Limited experience |

3 Year Warranty on Parts |   | Unproven name, limited references |

5% over 10 years | 5.25% (Bank) | 4% over 5 years. |...