CaseStudy: Pacific Healthcare
What alternatives should Barney Rubble consider when addressing the problem?
Inaddressing the matter, Barney Rubble should consider Agfa and Dupontfilms as the most suitable replacements for Kodak. From theinformation presented in the case study, the two produce films thatare of equal quality standards with Kodak film which is considered tobe the industry’s benchmark, and therefore will not be compromisingon the quality of their images (PacificHealthcare, n.d). Besides, the two are cheaper than Kodak andtherefore lots of costs will be saved. In addition, the hospital maynegotiate for discounted prices because of making bulk purchases, andthe situation may be even better if they choose to specialize on onesupplier. Choosing Fuji and 3M films may favor Pacific Healthcarefinancially due to reduced production costs. However, the quality oftheir images may get compromised and therefore ruin the operations inthe long run.
Should Pacific’s supply policies allow for any medical staff personnel to control sourcing decisions?
Procurementdecisions for organizations should be a matter made by one or moredesignated departments as opposed to being a duty assigned to anindividual. In the case of Pacific Healthcare, the radiologydepartment should be responsible for making recommendations on thequality of film required (Pacific Healthcare, n.d). Thespecifications should then be passed on to the procurement departmentfor them to source for the required films, after which the radiologyunit must check to ensure they receive the required quality. Itshould be noted that these approvals must be carried out atdepartmental and not at individual level.
What are the advantages and disadvantages of staying with Kodak-or changing suppliers?
Stayingwith Kodak may not have any advantages to the organization sincequality seems to be the only competitive edge the company has overthe others. However, this quality can be matched by Agfa and Dupont.The disadvantage of staying with Kodak is that the organizationcontinues to pay higher costs for films that can be obtained at alower price. The cost component also doubles as an advantage ofchanging suppliers, since the hospital will acquire quality films atreduced prices.
What action could Mr. Rubble have taken prior to Mr. Howell’s death to obtain reduced film prices?
Mr.Rubble should have made efforts to streamline procurement processesin the organization. If this had been done, the stakeholders wouldhave realized that they were paying unnecessarily high prices forfilms that could be sourced more cheaply. All in all, it is crucialto align processes within an organization for stability purposes.
PacificHealthcare. (n.d). A case study