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Global Sourcing Case

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1. What is Sandy supposed to do now? Sandy’s situation regarding Pearl Trade Co. Ltd in Foshan, China is a complete disaster. Sandy has extreme communication errors with the supplier. This could have been avoided with the help of a souring intermediary agent. I would recommend they do what is necessary of them now with threats of lawsuits being thrown around. I would look for a souring agent to work out this complication before it escalades, seeing if both companies can’t compromise and work together, and achieve both of their goals. As for the current delay of lumber I would contact the local supplier Smoking Lumber to negotiate a deal for a split amount of the total amount need until complication with Pearl Trade Co. are worked out, and …show more content…

Takin in both quantitative and qualitive factor that influence supplier selection considering risk. Allowing purchase manger to create a what if scenario based on this option. This method allows up to 500 companies to be evaluated. Allow the purchasing manager to find the right fit for the company. I also believe souring agent could help align Lucas Contraction with great supplier and alleviate some of the head ache that going international brings, and current issues they are dealing with such as communication. If I were Sandy using the multiple attribute theory method to select international sourcing bidding among these multiple firms that are interested in the contract. Considering the value factor will be high enough to justify bidding. Overall allowing Lucas Construction to maintain adequate sourcing overseas. 3. What kind of supply risk created Sandy’s dilemma? There are two variable risks that created Sandy’s dilemma. One an internal risk and another sustaining from external Risks. The internal risk was cause by the sourcing risks. They were having shortage of the material lumber to complete the building of a warehouse. Supply chain risks on the external plane deals with the demand volatility risk. Expressed by the sensitivity to pricing that effected its current sourcing methods. 4. What kind of sourcing mistakes did Sandy make? (List at least three sourcing decision errors made by

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