Pacific Healthcare Case Study
Case Study One
Case Name: Pacific Healthcare I. Major Facts Pacific Healthcare is the largest health care provider in Santa Barbara Country. Pacific Memorial, Pacific Cabrillo, and Pacific Isla Vista along with two nursing homes and ten outpatient clinics are all linked to Pacific Healthcare. Altogether, there are over 1,500 beds. Barney Rubble, the Pacific’s corporate director of supply management, is in charge of procuring supplies for all Pacific Healthcare subordinates. The director of radiology, Mr. Thurston Howell, has been in charge of the X ray film supplier selection for over fifteen years and he has used any other X ray film suppliers but Kodak. After Mr. Howell passed away, Mr. Rubble has the option to find new suppliers for a new or better deal. Mr. Rubble found out that Kodak has some competitors with the same quality and better prices. Kodak provides Pacific Healthcare a considerable discount by using only Kodak’s film as a supplier, and maintenance and services are available as well. Pacific Healthcare uses 1,500 sheets of Kodak’s X ray film per day at $ 1.80 per sheet. Four other companies manufactured the same X ray film that Pacific uses which are DuPont, Agfa, Fuji, and 3M. Manufacturer X ray film, price per sheet:
Kodak $1.80 Agfa $1.58 Dupont $1.50 Fuji $1.40 3M $1.35 II. Major problem
If Mr. Rubble chooses to go to a different supplier; would his company be able to receive the same service that Kodak provided them? Of course, they would save more money if they change to any of these suppliers, but would it be beneficial for the success of the company. III. Possible solutions A. Pacific can continue using Kodak due their durable relationship they have for over fifteen years, and they have never experienced any instable performance from Kodak. Nevertheless, because they are using 1,500 sheets per day at & 1.80; their annual total expenses will be approximately $ 983,000. Since Kodak offers maintenance and other
Case Name: Pacific Healthcare I. Major Facts Pacific Healthcare is the largest health care provider in Santa Barbara Country. Pacific Memorial, Pacific Cabrillo, and Pacific Isla Vista along with two nursing homes and ten outpatient clinics are all linked to Pacific Healthcare. Altogether, there are over 1,500 beds. Barney Rubble, the Pacific’s corporate director of supply management, is in charge of procuring supplies for all Pacific Healthcare subordinates. The director of radiology, Mr. Thurston Howell, has been in charge of the X ray film supplier selection for over fifteen years and he has used any other X ray film suppliers but Kodak. After Mr. Howell passed away, Mr. Rubble has the option to find new suppliers for a new or better deal. Mr. Rubble found out that Kodak has some competitors with the same quality and better prices. Kodak provides Pacific Healthcare a considerable discount by using only Kodak’s film as a supplier, and maintenance and services are available as well. Pacific Healthcare uses 1,500 sheets of Kodak’s X ray film per day at $ 1.80 per sheet. Four other companies manufactured the same X ray film that Pacific uses which are DuPont, Agfa, Fuji, and 3M. Manufacturer X ray film, price per sheet:
Kodak $1.80 Agfa $1.58 Dupont $1.50 Fuji $1.40 3M $1.35 II. Major problem
If Mr. Rubble chooses to go to a different supplier; would his company be able to receive the same service that Kodak provided them? Of course, they would save more money if they change to any of these suppliers, but would it be beneficial for the success of the company. III. Possible solutions A. Pacific can continue using Kodak due their durable relationship they have for over fifteen years, and they have never experienced any instable performance from Kodak. Nevertheless, because they are using 1,500 sheets per day at & 1.80; their annual total expenses will be approximately $ 983,000. Since Kodak offers maintenance and other