U of M RM 2215 - RM 2215 - Case #2 - Kroger & Fred Meyer Assignment

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Case Study #2CASE 25- Kroger and Fred Meyer: Sourcing Products in a Global Marketplace (Page 518 in textbook)Case Study #2 CASE 25- Kroger and Fred Meyer: Sourcing Products in a Global Marketplace (Page 518 in textbook)Directions: Read the Case Study # 25 on page 518 in your textbook. Answer the following questions using the textbook chapters as your sources. Explain your answer using detail from the textbook and your opinion. Upload your responses using Word on Canvas. This is worth 25 points. Synopsis: The Kroger Company is among the largest food retailers in the United States, andoperates more than 2,700 stores under nearly two dozen store-brand names. This case study follows the steps involved in sourcing products from Asia and bringing them to market. The challenge will be to estimate the time that is necessary to do this successfully.Use:Chapter 12 Buying MerchandiseAnswer Questions: (25 points)1. What factors would you list than need to be evaluated in making adecision to source products overseas? Make a list of pros and consand explain what the pressures are that impel manufacturers and retailers to not source products domestically. (10 points)a. Cost and quality of the products: In compared to domestic producers,importing items from other nations, particularly Asia, results in much reduced costs. Companies must be careful to ensure that they are not offering a low-quality product because reduced prices might often indicate inferior quality.b. Logistic system: Companies must have a strong logistic system in place to allow overseas producers to estimate the time it will take to deliver the product and ensure that everything is done correctly. Because logistic systems can be complicated, if a correct system is not in place, they may have supply chain issues, which could result ina significant loss.c. Regulations: Companies must follow all rules and be familiar with the laws of both their home nation and the country from where they are sourcing. Delays and significant fines might happen if firms do not follow all of the rules and regulations.d. Vendor reliability: Choosing a trustworthy provider may be a difficult task. Companies want to hire a dependable vendor so that they can guarantee that their products are created and delivered on time, thatthey are following rules, and that they are on good terms with oneanother. Working with a reputable vendor may sometimes lead to mutually beneficial agreements.e. Finances: Before picking which manufacturer to utilize for their goodsand services, businesses must assess their financial situation. This may necessitate negotiating with the vendor, and they will need to plan out each stage of the procedure.Manufacturers choose to import items rather than source them domestically for a variety of reasons, the most important of which being that domestic products are significantly more expensive to create than those sourced from outside. Material, supplies, work, packing, and other costs are all lower in other countries than in the United States. Profit is oneof a company's primary goals, thus being able to source a product at a considerably cheaper cost would result in greater profit, which is why most corporations want to source from a third-world supplier. Another reason corporations may feel compelled to source from overseas rather than locally is to avoid dealing with unethical behaviors that can and do occur inoverseas factories, such as unsustainable operations or unsafe working conditions.2. Based on the information given, how long do you estimate it will take to import these lamps? Create a set of target dates for each step in this process that will enable these products to arrive in time for the planned advertising date and selling period. (5 points)-Identifying manufacturers in Asia (Day 1 to Day 15): This procedure, in my estimation, would take 30 days.-Preparation of Purchase Order (Day 14 to Day 21): The Fred Meyer and Kroger buying teams would require around 7 days to examine the purchase order. The payment to the Asian producer would take another 7 days for Chase to process.-The manufacturer has committed to a minimum lead time of 90 days (day 21 to day 111).-Merchandise Transport (days 111 to 131): Shipments from the Pacific Rim to the West Coast can arrive in less than three weeks. Based on the provided information, we can estimate that the entire arrival time for the scheduled advertisement date will be 131 days.3. What areas of expertise do the various members of the product development team have? What are the possible communication issues that might arise between them? (5 points)To guarantee that this supply chain procedure is done efficiently, Kroger must engage a product development staff with a high skill level. For the first step of the process, when they pick what items to market and which manufacturer to utilize, they must recruit product merchandisers from the product development group. Product merchandisers must contact each supplier for assistance in determining which choice is the best to employ. If communication is not employed here, there may be problems selecting the correct manufacturer, which might lead to poor product quality or other problems.Since it is a fairly complex procedure, a lot of support personnel must be engaged to create the purchase order. To ensure that funds are in order, the Kroger buying team must connect with theKroger logistic teams and the bank. A communication difficulty that may develop here is that there are various groups to communicate with, therefore they must ensure that everyone is kept up to date and informed. The Kroger logistics team oversees every stage of the supply chain during the creation of the real product and delivery process. During this stage, the development team must collaborate with external parties such as the Kansas Global Trade Service;and overseas manufacturers to guarantee that all laws are followed. If consistent contact is not maintained during this process, there may be a supply chain delay, resulting in a significant loss for the organization. Kroger will be able to minimize potential delays and economic losses by employing a dedicated development team. If there is a lack of communication between all parties involved, the supply chain may fall behind, andenterprises will be unaware of what is going on.4. There are several opportunities for questionable ethical situationsto arise in the importing of products. What do you think the weak

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U of M RM 2215 - RM 2215 - Case #2 - Kroger & Fred Meyer Assignment

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