Analyze the situation and identify the major problems and concerned with SMOOTHSLIP LUBRICANTS .
The results of my research I found that, there are several issues that's required to be restructured from a purchasing and supply view point. In addition to this we now also have to consider logistics issues in the overall supply chain.
In the overall context of analyzing Smoothslip Ltd. supply an production challenges, we have identify the following issues that needs to be rectify to insure Smooth production and supply the market place in doing so we are going to analyze the difficulties the Smootslip Ltd. are facing; .
a. A Strategic Partnership, Right Lubricant and Quality to be pre-determined .
b. Price determination .
c. Material Production Planning MRP1 and MRP2.
Given the following theories espoused we should ensure the Smootslip Ltd. is sustainable for long-term future and growth. .
2. Analysis of Smoothlip Ltd.
One of the major issue is pricing, if we compare other supplier's price, there is a huge gap between Sinclair limited prices. .
The issue of Sinclair's relationship with SmoothslÝp changes due to the fire. Hence Sinclair is no longer a major customer and clear alternatives need to be looked at from continuous improvement's viewpoint. However, this does not include severing the relationship with Sinclair all together. .
According to June Williams's received quotations; Allied Additives Ltd. had been offered the lowest price 25 pounds per kg for 100 kg per month, first delivery 4 weeks, following by Moly Processors Ltd had been offered 27 pounds per kg, first delivery 6 weeks but the Smoothslip purchased 39 pound per kg from Sinclair Ltd. And all are based on six months contract. The reason for expensive purchasing from Sinclair; a strong relationship between two companies which come into being by time as for some four years, these two companies buying and selling from each other, but the price is unacceptable.
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