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Case 1: Cj Industries and Heavey Pumps

In: Business and Management

Submitted By Stowemoney
Words 1866
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CJ Industries and Heavey Pumps
Section 2
Case 1

Chris Stowe
Student number: 14210009
2014.11.19
Word Count: 1719 CJ Industries has an opportunity to provide Great Lakes Pleasure Boats with key engine components for their luxury line of pleasure boats. They earned this through the development of a strong buyer-supplier relationship with Great Lakes and this 5-year, $10 million annual contract offers them the chance to have an extended relationship if they can satisfy Great Lakes’ needs. The opportunity is critical for the successful future of CJI and the main goal of the company should be to completely satisfy the requirements of the contract with Great Lakes, and secure their future business with Great Lakes. While they do most manufacturing in-house, they have been sourcing their bilge pumps out to Heavey Pumps on an informal basis. While Heavey has been a reliable supplier, they are a small company and the expanded business will stress their production capabilities; so CJI has been contemplating whether to build the pumps in-house, or continue to subcontract them. Here are the questions from the reading regarding this issue:
What are all the issues here, from both CJI’s and Heavey’s perspectives, that need to be researched by Mr. Ashby?
From CJI’s perspective: Their number one priority is to maintain contract compliance with Great Lakes because it is the future of their business growth and success. With that in mind, they need to ensure the pumps from Heavey will arrive on-time and be of a high quality. Traditionally, this relationship has been professional and satisfactory, even though informal. However CJI had usually ordered 50 pumps, 8-10 weeks ahead of time, every 4-6 months and this allowed Heavey to stay on top of the orders and deliver the products as needed. This time though, their new contract with Great Lakes will require CJI to have…...

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