Question: Appendix A: Pallisers sourcing needs. This is a fictitious case based on a real company. Palliser is a Canadian manufacturer of personalized home furnishings. Palliser

Appendix A: Pallisers sourcing needs. This is a fictitious case based on a real company. Palliser is a Canadian manufacturer of personalized home furnishings. Palliser is a privately held, family-owned organization founded in rural Manitoba in 1944. See www.palliser.com for more details. As a furniture manufacturer, Palliser is required to source various products from hardware to fabrics to fasteners. The following is a list of categories of products that Palliser needs to source. a) Wood and wood products b) Glues and adhesives c) High-density foam d) Fabric e) Leather f) LED lights and lighting accessories g) Power motion furniture hardware, plug, and batteries h) Fasteners The highest spend categories are wood and wood products, fabric, leather and high-density foam. The lowest spend categories are glues and adhesives and LED lights and lighting accessories. The highest volume categories are glues and adhesives, fasteners and wood and wood products. The power motion furniture hardware is custom-made for Palliser products based on a proprietary design. For this reason, it is only available from one supplier at this time, which has the capability and knowledge to produce the power motion hardware. A low volume of power motion hardware is required and can only be stored for 6 months as parts may begin to seize from non-usage. Palliser sources the LED lights and lighting accessories from the same supplier as the power motion hardware. The following can be sourced from several suppliers: leather, high-density foam, wood and wood products. Several fabrics are sourced from several different suppliers. To offer a variety of customization options to its customers, Palliser utilizes 6-8 different fabric suppliers at any given time. Switching suppliers is difficult due to the custom nature of each suppliers fabrics. Glues, adhesives and fasteners are generic products used in standard manufacturing operations and are widely available from a few local suppliers and multiple international suppliers. Question 1 Complete a portfolio or quadrant analysis of the list of product categories listed above, a) to h). Display your answers on a spend map in the same format as Figure 11-1. Question 2 For each of the product categories, provide justification for your choice of spend category (quadrant). Provide your answers in a table similar to the format below: Product category Spend Category (quadrant) Justification a) Wood and wood products b) Glues and adhesives c) High-density foam d) Fabric e) Leather f) LED lights and lighting accessories g) Power motion furniture hardware, plug, and batteries h) Fasteners Question 3 If you were procurement manager at Palliser, how would you maximize the organizations opportunity? (Hint: your answers should consider the needs of the Palliser as an organization). Provide details on each spend category (quadrant) and your strategy (as described using the six major categories of supply sub-strategies in Chapter 2, pages 31-32)

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