Essay on the Supplier Connections at Quaker Oats

п»їA Distributor Alliance at Quaker Rolled oats

Summary

Quaker Oats Company of Chi town, IL produced an alliance with Graham Packaging of York, PA. Graham is known as a leading global manufacturer of custom whack molded plastic containers. Plastic containers are the most significant single amount and cost item acquired by Quaker Oats. Gatorade had captured over 82% of the global market share in the sports beverage industry. The purchasing section established an objective of lowering the bottling cost $12 million to $15 , 000, 000 per year to be able to bring a reduced priced merchandise to market. To achieve this goal, Quaker Oats designed a strategy of seeking supplier relationships that will help it do this. In 97 the company was single sourced; dual sourcing became the strategy that pursued. Quaker wanted to create a competitive environment in which it will reap the benefits of the competitive bottling market. Not merely could competition improve support, quality and cost, it will drive continuous improvement in those areas. The original dealer was resists Quaker's attempts to improve its position with the dealer. Because the initial emphasis was on bottle of wine supply and gratification, the supplier had agreed a price based upon new purchase and defined quantities. Above the 12-year period new talks had occurred, but the provider had managed to increase/retain its high start-up margins. The incumbent provider did offered various ways of cost decrease which were certainly not sufficient. Although the existing deal contained classes that made difficulties, Quaker Oats discovered from its blunders. The trust building procedure Quaker Rolled oats had employed in searching for the second source resulted in an connections between Quaker Oats Organization and Graham Packaging. This resulted in an in-plant bottling facility in the Gatorade grow in Atl. Quaker delivered the capital for the plant development and Graham covered the price of equipment in the facility. Graham also decided to operate the rose and...

Referrals: Burt, Deb. N., Petcavage, S. M., & Pinkerton, R. T. (2010). В Supply managementВ (8th ed. ). Nyc, NY: McGraw-Hill/Irwin.

http://www.ism.ws/pubs/proceedings/confproceedingsdetail.cfm?ItemNumber=11549

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