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Toy Doll's Company is a toy manufacturer located in Newport, KY. You are the purchasing agent in charge of sourcing packaging and services. Your current

Toy Doll's Company is a toy manufacturer located in Newport, KY. You are the purchasing agent in charge of sourcing packaging and services. Your current cardboard supplier has been facing quality and capacity issues, and you need to develop new sourcing alternatives as soon as possible. After a preliminary investigation, you ended up with four potential suppliers for card boxes. You requested them to provide a quotation based on your forecasted demand for your products. You forecasted 1,000 boxes per month for 2023, and 1,500 boxes for 2024 and 2025. You plan to get weekly deliveries as you don't have enough space to store them in your warehouse. You received the following quotations (all prices include freight door-to-door): Supplier Credit rating (0 bad - 5 excellent) Unit price/US$ Factory Location Lead time Quality and sustainability certification Minimum lot size Toledo Corp 3.9 US$ 1.35/unit Toledo, OH 1 week yes 30 boxes Deluxe Packaging 4.7 US$ 1.28/unit Pennsauken, NJ 3 business days yes 50 boxes Shillington 3.6 US$ 1.29/unit St. Louis, MO 5 business days yes 25 boxes Dongguan unknown US$ 1.15/unit Dongguan, Guangdong, China 50 days yes 200 boxes You also collected the following information: Toledo Corp - Mr. Baker - sales representative of the packing company, informed you that Toledo has an unfilled capacity. He appears to be eager to receive your order. After asking the supplier why there is an unfilled capacity, Mr. Baker said it was because they faced several problems with one machine, which was broken and impacted last year's business. Mr. Baker informed them they had just installed a brand new cutting machine, and the problem seems to be solved. Deluxe Packaging Inc is a well-known company in the market. They are recognized as one of the best in class in this industry, with excellent quality and reliability. They offer a full array of high-quality boxes in various shapes, sizes, materials, and features. Deluxe Packaging has a proven track record in custom packaging design and timely delivery. All communication is online by the Deluxe e-commerce platform. They are located in Pennsauken, NJ. No representative visited your company. Shillington Box Company - Mr. Smith, sales representative, personally brought in his company's quotation and presented the terms to you with a distinct air of confidence. Despite being a small company, they

have outstanding technicians, first-class machinery, and the capability to manufacture this product. Moreover, after talking to some colleagues about this company, you received positive feedback about Shillington's transparency and reliability. You heard they had supplied 90% of its commitment in the recent period of shortage and their factory is now working with three shifts (24 hours a day). Dongguan Caicheng Printing Factory is established in 1996 in China. They mainly produce paper, corrugated gift boxes, PVC boxes, paper bags, adhesive labels, and related paper or plastic products. Their products have been widely exported to the USA, Europe, Middle East, Russia, Singapore, Africa, and other countries and regions. You know that several clients in Europe were experiencing quality issues, however you don't have any additional information about it. Besides, Dongguan has ISO9001:2008 quality management system certification. Your quality department team required that all material be passed the SGS test report before shipping. You reach the company by email, and they agree with your requirements. All the communication flow is through emails. You did not visit the company, and no representative visited your organization due to Covid-19 constraints. Present your sourcing strategy for that case. You might want to include your rationale and all elements discussed in this course by now (determinants of value, sourcing strategy, and criteria for supplier selection)

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