1) Issues With CJI and Harvey
Issues for CJI are:
The contract between CJI and
Great Lakes had been done but there is no discussion with heavey pumps for this
large scale amount of production of bilge pumps.
No reports about the quality
history had been kept on Heavey pumps.
Heavey pumps cannot assure the guaranteed
delivery of bilge pumps of the required amount and quantity to CJI
CJI needs new Suppliers
Issues for Heavey Pumps:
They need more equipment,
labour, and other production costs for the surplus supply of bilge pumps
required by CJI.
Heavey pumps have a huge
challenge to the big contract so they need to be sure before going into the
contract with CJI
Due to extra labour and all the
things required for the new amount of production, heavey pumps need extra space
that will change the production cost and selling cost of bilge pumps
a) Yes, CJI should continue to work with
Heavey as they are pretty much reliable with the delivery, timing, quantity,
price and other aspects of the production. This is the main advantage as the
other suppliers may or may not be reliable as heavey pumps are.
b) yes, it is a
great option for the CJI to make pumps in-house. Though they may lack in the knowledge
of the production of the pumps but with 9 months in hand they can hire the
3required people and can start the production. The main advantage of this is
that they can control the time, production, cost and quality themselves. Although
they need to clear out some space but still it is very good option for CJI.
c) It’s not a
bad idea to get another supplier as they cannot totally depend on heavey pumps
to fulfill the production of the huge amount of pumps required. But this may be
a disadvantage in regard that if the other suppliers are reliable or not. Moreover,
they have been using heavey pumps for some time and may not know if heavey
pumps can really fulfill the amount of production required. So, they should
give a chance to heavey production.
of these three could be beneficial for all of them as they can collaborate to perfume
better and effective. For example, they can ask heavey pumps for 35-40 pumps
per month and 10 from the other supplier. Meanwhile they can start their own
production to fulfill months requirement.