Marketing and Advertising, what’s the best choice?

Marketing and Advertising, what’s the best choice?

Vendor X (present vendor)
Vendor X has been your source of supply for the past ten years and is located in the United States. Resource file data indicates that Vendor X has recently been bought out by a large corporation. Since then, deliveries have been one to two weeks late; therefore, you are looking for a new vendor. You have been paying .85 per shirt with F.O.B. factory freight prepaid and dating terms of 3/10, net 45.

Vendor Y
Vendor Y is a potential new source of supply and is located abroad (China). A visit to the manufacturing facility revealed that Vendor Y has the production capabilities to deliver the quantities needed at significantly lower prices than Vendor X and Vendor Z. Deliveries will take longer, so purchasing must be done earlier. Vendor Y offers F.O.B. destination charges reversed and ROG dating of 2/10, net 30. The price of one shirt less the quantity discount (which you would qualify for) is .75. Tariffs will be $.25 per shirt, and shipping costs have been projected to be $.50 per shirt, based on shipping by boat. Hidden costs include frequent trips abroad to monitor the manufacturing process for quality-control purposes.

Vendor Z

Vendor Z is a potential new source of supply (domestic). It has the capacity for a JIT (Just-in-Time) inventory system, whereby it will make frequent deliveries based on current needs. It has its own delivery trucks and an excellent reputation for servicing its customers. Its production facilities are smaller than Vendor X and Vendor Y, but worker productivity appears to be higher. Vendor Z offers F.O.B. destination (no charge for shipping) and dating terms of 2/10, net 30. The price per shirt with the quantity discount is .50.

Note: All three vendors offer UPC labeling and will take care of your private labeling and packaging requirements but will not agree to consignment or memorandum buying arrangements.

Compare and contrast the deals offered by suppliers X, Y, and Z and decide with which you would do business. Provide a rationale for your selection by reviewing the criteria buyers use in selecting supply sources. The product is men’s cotton/poly blend shirts to which you will add your own private label.

If you could also help me understand what next is and what F.O.B is… That would be great.

thank you!!
It’s for my class, and I need to explain which would be best choice, but I don’t really know which one it is, so that’s where I need the help.

Tags: Advertising, best, choice, MARKETING, Whats

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