Procurement Process
It can be evaluated that, Johnson fisheries procured certain juvenile fish species from China that had, high demand in the US and around the world. On the other hand, it procured its Fish feeds and other fish ecosystem enhancing substances local for supplier available in the US market. The main issue faced, in its international procurement of Juvenile fish from China.Has been the inability to ensure, the quality of the Juvenile fishes, as due to the strain of transportation the Joinvile fishes were weak (only a week old) and prone to decreases. Which compromised its ability to effectively meet, the ISO 9001 standards of the regulatory bodies. In which, the ISO9001 addressed the quality management of product being acquired, by organizations to ensure their consistency, in meeting the needs of the customers available in the market.Therefore, it can be evaluated that, Johnson is dependent on the quality of juvenile fish species being imported from china, as when the quality was high they would be able to meet the ISO 9001 standard. Whereas, if the quality of the imported juvenile file was low, the company would not be able to meet the standards of ISO 9001. Hence, it can be determine that, the company should hire expert in fish culture to evaluate, the quality to Juvenile fishes being imported before they are dispatched by the international party. Furthermore, Johnson’s senior management or procurement team, should set appropriate standard or polices.With its international suppliers, with respect to the quality that would be accepted by them and compel the international supplier to meet this high quality standard.By charging default surcharges or return the entire shipment order, if it does not meet the quality standards set by the company.
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Hence, it can be evaluated that, the company should develop alternatives for importing the same fish species from other international suppliers to decrease it dependency on its current international suppliers.
Make or Buy decision
It can be evaluated that, there is an opportunity present to Johnson to produce the Juvenile fish species in-house locally, instead of importing it from external sources such as china. Which could decrease the dependency of the organization on its external suppliers and could also provide the company with a cost advantage. Therefore, it can be determined that, the company could conduct a onetime study with the consultancy of expert on marine life and fish culture.To evaluate, what kind of equipment and procedure would be needed, to produce the juvenile fish species in-house locally.By establishing hatcheries within the company, with the right atmosphere and environment to produce the spawn fish species in house, after incurring a onetime investment,for acquiring mature male/female fishes from international sources. However, it can be evaluated that, if the company could successfully produce the fish in house, it could significant reduce the cost of fish till harvest. Which would allow the company, to sell its product at a relatively lower cost than its competitors available in the market.While gaining a competitive edge over them, to ensure its long-term survival in the highly diverse and competitive US market...........
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