Cj industries and heavy pumps Essay Example

advisable to maintain their usage. Heavey Pumps has consistently delivered the pumps before CJI runs out of stock, proving their reliability. This choice would lead to reduced shipping and production expenses for CJI and open up possibilities for a partnership. However, relying solely on one supplier poses a risk as it makes CJI dependent on a single source.

CJI should not bring pump manufacturing in-house due to a lack of financial information and expertise. The benefits of in-sourcing include better control over the product and protection of proprietary technology. However, the drawbacks of making it in-house are inadequate capacity and a lack of expertise.

In conclusion, CJI should consider the possibility of utilizing multiple suppliers to determine if it is economically beneficial compared to relying on a single source. The benefits of employing multiple suppliers include minimizing the risk of supply disruptions, fostering competition, obtaining diverse information, enhancing flexibility, and allowing for the assessment of new suppliers without disrupting production. However, there are also drawbacks such as reduced control, inconsistent quality control, managing delivery schedules, increased expenses, and additional administrative responsibilities.

To secure ongoing compliance and attract more contract business from Great Lakes in the future, CJI needs to improve organization and demonstrate reliability through careful oversight of costs, performance, and quality.