Subject category:
Production and Operations Management
Published by:
Ivey Publishing
Version: 2000-11-06
Length: 4 pages
Data source: Field research
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Abstract
The rebuyer of hard goods for Amway of Canada Ltd received notice that the latest shipment of goods by a supplier had failed to meet contractual specifications once again. The company relied heavily on the ability of its suppliers to deliver correct order quantities and descriptions in order to meet tight catalogue production deadlines. He had to decide whether he should recommend terminating the company''s two-year relationship with the supplier. There were several factors he needed to consider including the costs Amway incurred to remedy the problems and the company''s push toward global sourcing.
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Abstract
The rebuyer of hard goods for Amway of Canada Ltd received notice that the latest shipment of goods by a supplier had failed to meet contractual specifications once again. The company relied heavily on the ability of its suppliers to deliver correct order quantities and descriptions in order to meet tight catalogue production deadlines. He had to decide whether he should recommend terminating the company''s two-year relationship with the supplier. There were several factors he needed to consider including the costs Amway incurred to remedy the problems and the company''s push toward global sourcing.