This case study is about CJ Industries, and Heavey pumps supplying engine components and pumps to Great Lakes. CJ industries received a five-year contract from Great Lakes to supply engine components for luxury boats coasting ten millings starting July 2008. On the other hand, Heavey supplied bilge pumps. The case study is to identify the more reliable manufacturers to be able to supply to Great Lakes at an affordable cost. CJ industry was also trying to explore the possibility of them making their products because they had the capacity depending on Heavey’s capability to supply according to their demand.
Mr. Ashby needs to research CJ industries and Heavy issues to establish a more reliable supplier and how they can come up with solutions regarding the problem at hand. CJ industries were depending on Heaves for bilge pumps for them to be able to make a complete package to supply to Great Lakes, while Heavey is a small pump manufacturer and may face difficulties when the demand went high. The CJ industry can be able to manufacture its pumps. The manufacturing manager indicated that the space and capacity for CJ to build their pumps are available, and Mr. Ashby needs to research that ( Cross Valley contractors long-term contract renewal environmental assessment: Final, 2001). Heavey is a small local company. When the demand for pumps went high with the delivery cost, Heavey felt the pressure to supply within the requested time by CJ. Heavey had to encounter extra delivery costs, which is a problem for them and may cause delays in supply to CJ industries. These are some of the issues that need to be researched by Mr. Ashby concerning Heavey’s and CJ’s industries.
CJ industries had been a great and reliable supplier to Great Lakes, incorporating Heavey’s for several years in buying their products. CJ has been dedicated to Great Lakes, and the sufficient work they have been doing led to the contract award. According to the case study, CJ has shown reliability and confidence in offering its services (Claes, Schalk, & De Jong, 2010). CJ has the financial capacity to facilitate the building of the key engines without inconvenience compared to Heavey’s and Great Lakes. It will take a shorter time for CJ to manufacture the required products because of their experience in that field and the time highlighted for the products to be ready compared to Great Lakes and Heavey’s. Disadvantages that CJ industries may face is that they depend on Heavey’s for the production of pumps, they may not meet the demand for Great Lake if it goes up in the future, and this will cause them a huge loss to their sales as 30% of their sales comes from Great Lakes.
On the other hand, Heavey is a small industry and may not be able to withstand the pressure when the supply from the Great Lakes goes high. It will be a good idea for Great Lake to work with both CJI and Heavey industries as both of them can produce tremendous results if they marge their efforts. Heavey Industries has specialized in making bilge pumps, while CJI has been making engine components, which have proved reliable to each other. If the CJ industry decides to make its bilge pumps, it will require capital and skilled human resources to meet the required product standards, which will take time and resources from the company. On the other hand, CJ Industries and Heavey can combine their effort to give Great Lake quality products at the required time, saving time and resources.
For the CJ industry to ensure continued contract compliance and additional contract business from Great Lakes in the future, by being clear on the roles, they are playing with their clients, by outlining the organization’s responsibilities and how things will work out between the two companies and creating a standardized process to monitor the steps you take when the contract is still active(Turvey, 2022) and planning by thinking ahead to brainstorm ideas, resources and agreements and auditing while putting in consideration of previous contracts issues by your company. When there is a change between the two organizations that signed the contract, adjustments can be made quickly to save time and resources. Staying organized and up to date with the contract to ensure it doesn’t get messy or go out of line. Ensure that all requirements from the client are met without conflict of interest. Ensure a steady supply of products from CJ industries to meet the demand that Great Lake requires. Create a flexible and transparent relationship with their client to build trust in them and their product. Effective communication, if something comes up regarding the contract, ensures involved parties know the situations to be expected. Establish an approval workflow to manage the approval of documents like invoices, quotations, and work orders.
In conclusion, the case study is about Heavey and CJ industry and how they can meet their supply to Great Lake. CJ industries depend on Heavey to supply bilge pumps to make boat equipment for the Great Lake industry. We have noted the problems and solutions that CJI and Heavey can implement to produce reliable service and goods for Great Lakes.
Reference
Claes, R., Schalk, R., & De Jong, J. (2010). International comparisons of employment contracts, psychological contracts, and worker well‐being. Employment Contracts, Psychological Contracts, and Employee Well-Being, 213-230. Turvey, R. (2022).
Demand and supply in labor markets. Demand and Supply, 92-104. doi:10.4324/9781003283225-7
Cross Valley contractors long-term contract renewal environmental assessment: Final. (2001).
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