Please Answer the question in brief. 1. Contracting with supplier partners in ot
ID: 371858 • Letter: P
Question
Please Answer the question in brief.
1. Contracting with supplier partners in other countries can offer challenges compared with dealing with onshore partners. What issues do you believe Liz and Michael should address when ordering from suppliers overseas? Should they order online, or off-line?
KIMBALL’S RESTAURANT: Long Distance Recipes
While Michael and Tyler were planning the operational and marketing aspects of the Lakeside location, Liz began to consider some details of the kitchen operations and menu. The family’s plan was to maintain the “hometown” meals and reasonable cost in the new location. However, she also thought that the menu needed some “upgrades” for the new location. She believed it was important to maintain their core menu choices but to also set a slightly different tone with additional menu choices for the Lakeside. Because their plan was to offer the Lakeside function room for business meetings, social functions, and special occasions for groups, a broader array of menu choices could give them a competitive advantage.
Michael and Liz enjoyed traveling to places outside of the United States. When they traveled, Liz explored the local restaurants and food stores to get inspiration for new recipes and ingredients. She found interesting items in countries such as Spain, Italy, Portugal, and France. She wondered how Kimball’s could stimulate their current menu choices as well as build new choices to rebrand the new location. Using the current menu along with her travel notes on various meals and ingredients, she was excited about developing a winning menu for their Lakeside location.
New View, New Menu
Liz began to develop new appetizers, entrees, and side dishes that used various imported spices and condiments. Whether it was imported olive oil, pasta, or
roasted peppers, the imported ingredients could add great value to the menu. Now, what would be the cost and availability for such items? She searched on the Internet for foreign suppliers to purchase items that she would need. There were several suppliers who sold and shipped products to the United States. She also researched several U.S. food suppliers to compare costs and shipping logistics. Michael and Liz then met to review her ideas and what she found.
Michael liked Liz’s additions to the menu. For example, an appetizer tray of various imported cheeses, olives, and roasted peppers could appeal to groups as well as individual patrons. Michael agreed with Liz that they were not abandoning their “old” menu selection, just expanding it to appeal to a broader range of customers. The upgraded appetizers could be marketed to a late-night crowd along with drinks and light fare. Michael also thought that these additional menu items could be offered on certain nights as a special promotion or for “after work” gatherings.
Michael, being the numbers fanatic, evaluated the costs of purchasing these items through a local supplier or overseas. He found the costs were very similar; probably balanced between the local supplier’s markup versus dealing with the overseas manufacturer/supplier directly. Purchasing from a foreign supplier did not seem outrageous.
Liz and Michael were pleased with the newly redesigned menu and its potential to brand The Lakeside a little differently than their current location.
Explanation / Answer
Answer:
Issues in dealing with overseas suppliers:
-The culture differs from one country to another.So the cultural communication differences can create confusion.The communication may not be understood by the overseas suppliers and they may understand it in a different way and this creates confusion with the imported goods from overseas.The products ordered may not be correctly delivered because of miscommunication
-Face to face meetings are not possible with overseas partners and everything has to be communicated only through emails,phone calls etc.So the exact concern cannot be expressed through emails,calls.Incae of any confusion or problem ,the concern cannot be expressed through face to face communication
--Overseas suppliers may not know the changing condition in the market and all the demand and customer preferences cannot be sensed by them directly .So every change in condition have to expressed to them through mails,calls and the orders should be placed based on the demand
-Incase of any urgency ,the overseas suppliers cannot supply the products immediately and it will take some time for them to export the products.So they have to wait for the products to arrive even if the demand is high suddenly
-There may be a delay while exporting the products due to environmental conditions or any other reasons so all the products have to be tracked till they reach and have to be ensured whether all the products ordered are received without damage.There may be a damage to the products while exporting
online or offline:
They can order online through overseas suppliers but they should not fully depend on their supply.They should also have some dealing with online suppliers because incase of any emergency or change in sudden demand they should have plenty of stock or must wait for the delivery of products from overseas.This may cause the restaurant to decrease their value.So while partnering with overseas suppliers they should correctly communicate their demands and make them understand their needs clearly without any confusion.