Sopraffino Goes Global Case Study
Materiel Acquisition Management
MGT 5084
Case Study – Sopraffino Goes Global
Sopraffino is a single business based on Italian heritage, founded in Danville, California in 1998. Sopraffino is known as first class or super fine in Italian. The company started transacting business focused on selling gallery items, beautiful gifts, and furniture. After six months that the business has been in existence, the company declared a small amount of net income which is not enough to cover the company overhead expenses. The company shifted sales product to dry floral, including soap, containers, cards, and lotions. Later on, Pam encountered some issues with global sourcing which was not expected to occur. These are as follows:
Due to the costs of transport, and available low-cost sources, today manufactures are located in another state where Pam has to wake up as early as 4:00am and drive two to three trips to purchase her products and transport them back to her site. The issues of working sixteen hours a day and transporting goods two to three rounds has affect her family life. That is, Pam was unable to balance her family life with work, thereby becomes jack of all trades master of none.
In addition, another issue was that Pam failed to research the direct source of supply of the products she is interested in, thereby causing strain in her life transporting the products for the fried floral as well as other products. Wholesalers buy and sell products to retailer and final consumers. Therefore, a manufacturer sells their products through a number of wholesalers that sell them directly to company’s owners, who turn around and sell them a number of end buyers. When Pam eliminates the wholesalers, she enjoys higher percentage in the company bottom line. More so, wholesalers add to the cost of good distributed to the final consumer.
Pam later found out that by ordering goods directly from manufacturer, eliminates the cost incurred from transport products from California.
MGT 5084
Case Study – Sopraffino Goes Global
Sopraffino is a single business based on Italian heritage, founded in Danville, California in 1998. Sopraffino is known as first class or super fine in Italian. The company started transacting business focused on selling gallery items, beautiful gifts, and furniture. After six months that the business has been in existence, the company declared a small amount of net income which is not enough to cover the company overhead expenses. The company shifted sales product to dry floral, including soap, containers, cards, and lotions. Later on, Pam encountered some issues with global sourcing which was not expected to occur. These are as follows:
Due to the costs of transport, and available low-cost sources, today manufactures are located in another state where Pam has to wake up as early as 4:00am and drive two to three trips to purchase her products and transport them back to her site. The issues of working sixteen hours a day and transporting goods two to three rounds has affect her family life. That is, Pam was unable to balance her family life with work, thereby becomes jack of all trades master of none.
In addition, another issue was that Pam failed to research the direct source of supply of the products she is interested in, thereby causing strain in her life transporting the products for the fried floral as well as other products. Wholesalers buy and sell products to retailer and final consumers. Therefore, a manufacturer sells their products through a number of wholesalers that sell them directly to company’s owners, who turn around and sell them a number of end buyers. When Pam eliminates the wholesalers, she enjoys higher percentage in the company bottom line. More so, wholesalers add to the cost of good distributed to the final consumer.
Pam later found out that by ordering goods directly from manufacturer, eliminates the cost incurred from transport products from California.