J. Griffiths Ltd is an old British traditional bike pulverisation, which was a major(ip) manufacturer in UK. They have a wide rate of bicycle for different kinds of customers. Today the profits be declining quick and at that place is an increase of the competition from South East Asia. Those factories are more competitive and have a higher pedigree of product, a better quality, a shorter lead time... which is very mesmerizing for the customer.
The bon ton has two sites : Perry Barr, which is the biggest one, but does not have ship for extension and there is a waste of space because there is 5 weeks stock of work in progress ; and the other site has the Plastic moulding company which is in Wolverhampton. The milling machinery has the opportunity to sell the site of Wolverhampton, but there is the hassle to know how they can organise itself to put all the machines in the main site, what they should change ... which explain the first point.
For the second question we have to consider a purchasing strategy, which induce the union with the suppliers ; we have to choose if we want to try to have few suppliers, a dual sourcing, tiering, a local sourcing, ... and which kind of voicelessy we can anticipate.
The company can buy an Italian bicycles firm, which is a gears supplier, is located in Europe so give to the factory one door for the European market, new suppliers (maybe cheaper), but it gives well-nigh problem too, like the language and the understanding, the currencies, the culture, ... It is therefore more difficult to have good relation with the supplier and to transfer to him our knowledge. The comparative problem the factory can have with the Italian company can justify the second question.
The factory...
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