Hudson Valley Juice Company A National Beverage Corporation Company The Hudson V
ID: 334305 • Letter: H
Question
Hudson Valley Juice Company
A National Beverage Corporation Company
The Hudson Valley Juice Company is a wholly owned subsidiary of National Beverage Corporation, headquartered in Cincinnati, Ohio. At its plant in Poughkeepsie, New York, Hudson Valley manufactures a number of different natural fruit juices, based on the fruits of Local region. It’s most popular juice drink products are
Apple
Grape
Cherry
New source
At a Cincinnati meeting sponsored by the parent company, National Beverage Corporation, Debbie Wagner, Hudson Valley's purchasing agent for packaging materials, had met Jeff Smith, a colleague from another National Beverage Corporation subsidiary in Los Angeles, California. Talking shop, they had exchanged information and experiences. When Debbie· had confided in Jeff that she had experienced some difficulties lately in obtaining sufficient quantities of bottle closures at competitive prices, he suggested that she contact the Tight Cap Division of American Packaging Corporation. He reported that he had long bought from this source and was very pleased with their performance and responsiveness.
Upon her return to Poughkeepsie, Debbie had called Tight Cap in Chicago, requesting a price quotation and sample caps. The caps were duly tested in the company's laboratory and Tight Cap's prices turned out to be quite attractive. So Debbie had placed an initial order for 500,000 bottle caps, to be delivered on a specified date.
Surprise!
It is now:3:00 P.M. on Friday afternoon , and Debbie has just learned that the shipment of 500,000 bottle caps from Tight Cap, scheduled for arrival this morning, has not been received. These caps were to be used immediately in the production process, starting at 7:00 A.M. on Monday. No safety stock of these caps has been kept on hand. To make matters worse, apple juice which is to be produced using these caps is out of stock with a substantial backlog of orders on the books.
As Debbie goes about sorting out the situation, people in the purchasing, production, and marketing departments nervously wonder what happened and what will happen. Amid the scurrying to attempt to determine the whereabouts of the missing caps, comments such as "it's not my job" and "why didn't you come to us earlier" are overheard.
A quick review of a copy of the purchase order tells Debbie that the designated routing is "best way." Also, instead of a specific delivery date, the notation reads ASAP (as soon as possible). The terms of delivery are noted as FOB.
Assignment:
The five questions below are to be used as guidelines and thinking points for your analysis.
1. What mistakes were committed by Hudson Valley employees in this case?
A: How could they have been avoided or at least minimized?
2. What are the pitfalls of routing traffic the "best way"?
A: Is the delivery term "FOB" sufficient, and why or why not?
3. How can the correct selection of transportation mode help the overall profitability of the company?
4. How and by whom should decisions regarding transportation arrangements be made and why?
5. Describe the problem statement, assumptions, SWOT & pestle analysis, ALTERNATIVES, RECOMMENDATION AND CONCLUSION.
Explanation / Answer
1.Hudson valley juice company is a national beverage corporation company and it is headquarterd in Cincinnati,ohio and it manufacturing place is held at Poughkeepsie, New York. debbie wagner is the parent company of hudson valley juice company and the hudson valley company is looking for purchasing agent for packing materials, jeff smith is also running a national beverage corporation subsidiary in los angeles,california.they share the experiences and everything learn and directing to the market level.now they were not approaching the employees to follow the juice bottle cap price and details..the purchasing agent is work is to buy the packing materials alone and he cant to handle the employees work and skills.if the employees were commited in this case they will be collect the information about the juice bottle caps and other details of the information of products.
they should accept the comfortable price of the caps and if any other person suggest the other cap division we should test the qualities..the most avoided thing is dont buy the worst qualities of the juice caps.
2.debbie had deal with tight cap in chicago and they were requesting the cap price and details . they asked the sample caps and they tested the caps in labaratory and finally they ordered 500,000 bottle caps to be the delivered date.. now the FOB (FREE ON BOARD) delivery is sufficient and it is also important thing to pay the deliver goods to the person who buy the caps. A Seller should spend the money to the delivery charges.
3. the delivery is too late to get the bottle caps (friday afternoon) and the debbie learned that caps has not properly delivered at the due date.and then they started the production process at 7AM on monday overall shipment of the 500,000 bottle caps.they were creating the tremendous exposure to sell the apple juice by packing the bottle cap as perfectly.but debbie is planning to sell the product to whole market and to understand the customer pshycological things.so the logistics and transportation department gets profits by doing perfect planning and analyzing the financial values of the company and situation.
4.debbie should take the proper decision to the transportation arrangements because the whole products are depending on the transportation department..they should bring the things as very safety and handle to the buyer.the proper transportation arrangement and planning is a necessary things to achieve the business goals.
5.the problem is depending the purchasing agent for buying materials and they were not giving support to the employees and they will be strong knowledge about the product details and collect the sufficient information to the company owner.there are two things in business that one is proper planning and taking decision very rightly and they should be understand and give the respect to the customer values and satisfication.it is the way to achieve the business in any field.
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