Case Study: Unifine Richardson
Unifine Richardson (Unifine) is a company in Ontario, Canada with one hundred ten employees with facilities located throughout Europe and North America. The company manufactures many items using honies that include dressings for salad, ice-cream toppings, sauces and syrups. Consumers include the food service marketplace, retailers and industrial consumers. One million pounds of darling is bought annually, which can be 3 вЂ“ 5% with the firm's total expenditures. The majority of the honey purchased is a 50-50 blend of Chinese language and Canadian honey at a cost of $1. 08 per pound. Unifine depended heavily on a supplier, Harrington Honey, because of its honey. In 2002, the purchasing administrator of Unifine was notified by Harrington Honey that traces associated with an antibiotic, chloramphenicol, was seen in Chinese sweetie by the Canadian Food Inspection Agency (CFIA) and Harrington Honey was discontinuing their very own import of Chinese sweetie. Current products on hand of the honies would be used up in regarding one month and so a decision is required immediately relating to an alternate way to obtain honey. Rates of non-Chinese honey had gone up considerably to an almost all time substantial, while supply had lowered by 20%. Strategizing was required to ensure the firm's sales to its major major foodstuff service customer, as well as others, were not jeopardized. 80% of Unifine's latest honey revenue were made to the major foodstuff service client for use as a dipping spices for fried chicken over a cost-plus basis. Rob Pincombe, purchasing supervisor at Unifine Richardson was presented with 3 alternate options available by Harrington Honey that included: 1) 100% Canadian honey by $1. seventy five lb
2) 100% USA honey at $1. 79 per lb, or
3) 50-50 Canadian/Argentinean honey at $1. 42 every lb.
The initial option, fully Canadian sweetie, is the second most expensive and would enhance cost, which in turn would have to end up being passed on to the customer to ensure success. The advantages of the option include a cost savings...