Road Machinery Manufacturing

Case Study: Individual Preparation Report

Name: Jaspreet Singh (991304253)

Date:16/1/13

Case Title: ____Road Machnery Manufacturing Company____

Key Issues (10 marks)

Issue 1 (Most Important Issue):

The first main issue in the case is the financial planning of RMM. QPS requires its clients to maintain a minimum deposit of $10,000 as it was a financially driven company and courier shipments were charged against that deposit. So maintaining that cash deposit was the issue for RMM and this was the main reason why Bob switched to Roomis from QPS. So this issue is the reason for everything else. The other issues occurred because of this issue. That is why this should be addressed first.

Issue 2 (Second Most Important Issue):

The second issue in the case is with the Roomis. Although it includes cheaper rates and greater flexibility in payment terms but still RMM had to co-ordinate cross –border shipments through its own broker and there is a delay of two or three days in the parcel pickups from the united states. Also the suppliers were hesitating in shifting from QPS therefore many of them started to prepay the freight and bill RMM which was costing the company. They also were not able to pick up the last shipment which caused nearly a production shutdown and affected RMM`s image. At that time QPS helped them in doing the shipment delivery. So now a decision has to be made about that whether RMM should carry on with Roomis or switch back to QPS.

Issue 3 (Third Most Important Issue):

The third main issue of the case is for Material Manager Ray Wilkins that whether he should address the issue of changing the courier company to QPS again in the next meeting or not. His boss is man of commitment and principles and Wilkins doubt that he would switch again to QPS or not because he was fed up of the intransigence of QPS. He wanted some flexibility in the minimum deposits as the economic fluctuations were affecting the business. So this was an issue...