Pacific Healthcare Essay Example

a cost of $1.80, the company's annual expenses will reach around $983,000. However, by taking advantage of Kodak's maintenance and other services, which can save both time and money, Mr. Rubble will eventually achieve success. Moreover, Dupont and Agfa offer comparable quality to Kodak at a lower cost per sheet.

Mr. Rubble can save over $120,000 per year by using Kodak, Dupont, or Agfa. This money could be reinvested in other tools to improve Pacific's services and offer better prices. It is worth mentioning that they may not receive the same benefits as those provided by Kodak, such as maintenance and discounts. Using multiple suppliers for the same purpose is uncommon among most companies, but Mr. Rubble has the choice of selecting either Kodak and Dupont or Agfa.

Choose to buy fewer X-ray films from Kodak in order to save money and still receive the same benefits and services. Opt for purchasing more X-ray films from Dupont or Agfa, as they offer lower costs compared to Kodak. Despite Kodak being a great opportunity for Mr. Rubble due to their discounted services and equipment, their X-ray film is more expensive. On the other hand, Dupont and Agfa provide good quality at a lower price.

Rubble may end up paying more for other services and maintenance.

IV. Choice and Rationale

Pacific Healthcare's supply strategy for medical supplies is to obtain the highest quality with the best service at the lowest overall cost. Pacific's objective is to find a single-source supplier for a one-year contract. The most beneficial solution for Mr. Rubble is to continue his relationship with Kodak, as they are capable of performing

at a high standard. However, if there are any concerns about Kodak's high cost or the services they have provided in the medical department, they need to be addressed and fixed. Mr. Rubble can choose an alternative if necessary.

Mr. Rubble may consult the medical staff for their opinions on whether to continue using Kodak as a supplier or switch to another one. However, he is hesitant about exploring other options due to concerns about reliability and efficiency. It would be advantageous for him to stick with the supplier that the company has been using for the past fifteen years.

V. Implementation

As the new manager responsible for procurement suppliers, Mr. Rubble should have an understanding of key factors necessary for increasing profitability, improving efficiency, and satisfying customers. He should involve all employees, promote effective communication, and establish a clear vision for strategic planning.

Appendix

1.

Barney Rubble should consider analyzing his annual performance report, reviewing customer feedback, and evaluating the supplier's performance as alternatives to address the problem. Additionally, Pacific's supply policies should not allow medical staff personnel to control sourcing decisions. Sourcing decisions are typically made through a logical and step-by-step process. However, the supply policies should include a procedure that allows other personnel to provide input and combine those inputs to make a decision, as collaboration is crucial for remaining competitive in the long run.

What are the pros and cons of remaining with Kodak or switching suppliers? How would you assess these factors?
Using Kodak's film has a major advantage due to its higher quality and better services. Higher quality enhances customer satisfaction and often boosts a business's profit. Conversely, Pacific Healthcare will keep

incurring more expenses on X-ray film. If Mr. Rubble opted to change suppliers, one significant concern would be rebuilding the trust Pacific had with Kodak over the past years. 4.

Mr. Rubble could have taken action before Mr. Howell's death to negotiate lower prices for the film by discussing the matter with him.

One possible method of evaluating the worth of the equipment, services, or maintenance for another year is to discuss with Mr. Howell whether it is feasible to renegotiate with Kodak's film company. Considering their extensive business partnership spanning more than fifteen years, it appears logical to investigate the potential for a reduced cost. Moreover, comprehending Mr. Howell's rationale for disregarding alternative suppliers offering lower prices than Kodak would be beneficial.