Futronics Case - 949 Words

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†¦show more content†¦But there is always a fear that what happens next. How would be the response from the consumer and stakeholders? Since now the company has become dependent, what would be the level of trust? Annex 1: Comparative Evaluation Sheet for Selecting Vendor Evaluation Criteria | Company Name | | Litton | Boise-Cascade | L.E. Muran | Bay State Office | New England | Total Score | Weighted Score | Sample Catalogues | | | | | | | | Price List | | | | | | | | Ranges of costs for certain delivery | | | | | | | | Contract Term – 3 year | | | | | | | | Order Cycle Times – 10 Working days | | | | | | | | | | | | | | | | Levels:5 – Execellant4- Good3- Average2 – Fair1 – Not Satisfactory | The Report After analyzing all these risks and criteria Id like to present some points to demonstrate why we should go for outsourcing: * Closing stores operation the labour cost (4 employees) and space can provide $200,000 savings per year. * The employees can be allocated to another area or retired. I recommend one of them to work supporting with the contract management and for this job the disability worker can be