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Rub-A-Dub Washing Machine Company Finding Overseas Supplier

Charlie Harris is facing a tough challenge; he needs to find 50,000 major tub assemblies for $ 160 per unit. Otherwise, the new product will fail, and supply management of the Rub-A-Dub Washing Machine Company will end. One way to do it is to convince old Rub-A-Dub’s suppliers to agree to the terms. Another strategy that will be discussed in this paper w who is willing to provide the needed amount of parts.

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Overseas Suppliers

Lower Prices

When old vendors disagree with proposed prices, it is time to find new ones. Overseas suppliers are the factor that Charlie Harris should now consider. It is safe to say that international vendors have several qualities that perfectly fit the Rub-A-Dub supplier cost program. Experts note that “manufacturing costs are generally lower and businesses can often buy goods at a lower unit price” in the network of global suppliers (Working with international suppliers, n.d., para. 4). With a tight budget, suppliers from India or China are the best option. However, Charlie Harris is also looking for quality and reliability in needed parts.

Higher Quality

Another benefit of cooperating with foreign suppliers is that they supply quality products. Researchers note that many overseas markets provide “higher quality goods compared to domestic products” (Working with international suppliers, n.d., para. 5). Interestingly, both qualities that Charlie is looking for are often found in international suppliers. There, vendors from Eastern Europe, Southeast Asia, and China can become new Rub-A-Dub partners and compete with the old ones for the place of the favorite supplier. Moreover, news and rumors that the company is looking for new supply channels of cheap and reliable major tub assemblies could help negotiations with Joe Wilson, Sam Newson, and George Withers.

Effectively Negotiating with the Old-Time Vendors

Preparation

Rumors alone, however, are not enough to convince old suppliers with whom the company has developed a long and trusting partner relationship to the terms of informal proposals. Charlie already has a set of priorities and a pricing policy discussed in the first session. Therefore, one can say that the negotiation strategy has already been developed; what it needs are revision and adaptation. Specialists from the supply and engineering, sales, and supply management departments can help with it. Charlie can also form a negotiation team with the heads of these departments. Leading figures often have well-developed “skills in all the necessary areas” (Negotiate the right deal with suppliers, n.d., para. 24). Their broad knowledge of the state of affairs within the company will help in persuading suppliers.

During Negotiation

Charlie should focus on Joe Wilson during negotiations, as his offer seems to be the most profitable in the negotiation process. He should convince him to lower the price by extending the contract by three and a half years instead of the previously proposed three years. If that does not work out, Charlie should consider George and Slim’s price policy. This option is much better than Newson’s proposal in any case. It seems he is not going to lower the price under any circumstances. If the IRT Company’s proposal turns out to be incompatible with the Rub-A-Dub plans, then Charlie and his team should voice plans to find suitable overseas suppliers. Further actions depend on the responses of old suppliers, and Charlie should focus on maintaining the existing partnership, as suppliers previously showed their intention for further cooperation.

References

Working with international suppliers. (n.d.). Nibusinessinfo.co.uk. Web.

Negotiate the right deal with suppliers. (n.d.). Info entrepreneurs. Web.

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StudyCorgi. (2022, October 11). Rub-A-Dub Washing Machine Company Finding Overseas Supplier. Retrieved from https://studycorgi.com/rub-a-dub-washing-machine-company-finding-overseas-supplier/

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StudyCorgi. "Rub-A-Dub Washing Machine Company Finding Overseas Supplier." October 11, 2022. https://studycorgi.com/rub-a-dub-washing-machine-company-finding-overseas-supplier/.

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StudyCorgi. 2022. "Rub-A-Dub Washing Machine Company Finding Overseas Supplier." October 11, 2022. https://studycorgi.com/rub-a-dub-washing-machine-company-finding-overseas-supplier/.

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StudyCorgi. (2022) 'Rub-A-Dub Washing Machine Company Finding Overseas Supplier'. 11 October.

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