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J Griffiths Ltd is an old British traditional bike factory which was a major manufacturer in UK They have a wide range of bicycle for different kinds of customers Today the profits are declining rapidly and there is an increase of the competition from South East Asia Those factories are more competitive and have a higher line of product a better quality a shorter lead time which is very attractive for the customer The company has two sites Perry Barr which is the biggest one but does not have place 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 factory has the opportunity to sell the site of Wolverhampton but there is the problem to know how they can organise itself to put all the machines in the main site what they should change which explain the first question For the second question we have to consider a purchasing strategy which induce the partnership 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 problem 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 some 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 relational problem the factory can have with the Italian company can justify the second question The factory Perry Barr site knows some problems It is a lot of all kind of wastes But the one which are the most
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