Futronics Case
Introduction
Background of the Case
FUTRONICS Inc. is a private company located in Lexington mainly categorized for modems, monitors, disk drives and terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services.
Cost Status of the Company Description | Making Cost in Total | Buying cost in Total | Size of company: Raw | 2 Billion Dollar | | Cost of Goods sold | $ 900,000 | | Average Inventory (500 items in stocks) | $ 140,000 | | Cost of Personnel and Space | $ 200,000 | |
Period of performance (Time Line) Description | Year | Target Serving Areas | Central Store Created | 1950 (middle of) | 21 area sites | | Present | 42 area sites |
Place of performance
Futronics Inc. is located at Lexington, Massachusettes.
Stakeholders Analysis: 1. FUTRONICS Inc. 2. Central stores 3. Supply Management Department 4. Manager of Supply Management 5. Employees 6. Consumers 7. Government bodies 8. Vendors 9. Financial department 10. Outside store services 11. Litton 12. Boise-Cascade 13. L.E. Muran 14. Bay state office 15. New England supply 16. Other firms in Boston
Focus areas 1. Make or buy decision 2. Multi-functional team 3. Risk analysis 4. Cost Estimate 5. Time Estimate 6. Ethics
Scope of work
The company has been into the supply chain management business for more than 60 years but in the recent years there has been decrease in sales due to heavy competitions. So the company is thinking of outsourcing central office stores as a part of their cost reduction programme.
Now the company is in the initiation and planning stage of procurement and contract management. The procurement division manager is into the through
Background of the Case
FUTRONICS Inc. is a private company located in Lexington mainly categorized for modems, monitors, disk drives and terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services.
Cost Status of the Company Description | Making Cost in Total | Buying cost in Total | Size of company: Raw | 2 Billion Dollar | | Cost of Goods sold | $ 900,000 | | Average Inventory (500 items in stocks) | $ 140,000 | | Cost of Personnel and Space | $ 200,000 | |
Period of performance (Time Line) Description | Year | Target Serving Areas | Central Store Created | 1950 (middle of) | 21 area sites | | Present | 42 area sites |
Place of performance
Futronics Inc. is located at Lexington, Massachusettes.
Stakeholders Analysis: 1. FUTRONICS Inc. 2. Central stores 3. Supply Management Department 4. Manager of Supply Management 5. Employees 6. Consumers 7. Government bodies 8. Vendors 9. Financial department 10. Outside store services 11. Litton 12. Boise-Cascade 13. L.E. Muran 14. Bay state office 15. New England supply 16. Other firms in Boston
Focus areas 1. Make or buy decision 2. Multi-functional team 3. Risk analysis 4. Cost Estimate 5. Time Estimate 6. Ethics
Scope of work
The company has been into the supply chain management business for more than 60 years but in the recent years there has been decrease in sales due to heavy competitions. So the company is thinking of outsourcing central office stores as a part of their cost reduction programme.
Now the company is in the initiation and planning stage of procurement and contract management. The procurement division manager is into the through
References: Flemng, Q. W. (2003). Project procurement management: Contracting, subcontracting and teaming. (First ed., p. 273). America: Mayori, F. (2013). Procurement slides - course study . Toronto, Canada: Centennial College, Progress Campus. www.centennialcollege.ca