Pacific Healthcare Case Study: Pacific Health Care

1475 Words 6 Pages
Register to read the introduction… Now that Mr. Howell has pasted it is Mr. Rubbles’ responsibility to either decide to keep the Kodak for the X ray film or change to a different X ray film supplier. What needs to be kept in mind is that Kodak was also offering Pacific Healthcare discounts for furnishing X ray equipment along with maintenance and service. This was all because they were their only X ray film supplier. If Pacific Healthcare switches to a different X ray film supplier they will lose those discounts. Obtaining the highest quality with the best service at the lowest price is Pacific Healthcare’s supply strategy for medical supplies. Their objective is to find a single source supplier for a one year …show more content…
Mr. Rubbles can choose to stay with Kodak. The price for Kodak is higher than the other competition but they give Pacific Healthcare discounts on other services. Kodak furnishes Pacific Healthcare with X ray equipment, along with maintenance and services at a substantial discount for using Kodak as a single supplier for X ray film. I have found three issues with this possible solution. One, I do not know how much of a discount they are getting for the X ray equipment, along with the maintenance and services they are receiving from Kodak. With that I also need to know how much the competitors are willing to give Pacific Healthcare for those additional services that Kodak is offering to them. Last, but not least there are other competitors that are at a lower price range with the same quality as Kodak. DuPont offers their X ray film for $1.50 per sheet and Agfa offers theirs at $1.58 per sheet. Kodak is charging Pacific Healthcare $1.80 per sheet of X ray film. With this solution we have to keep in mind that Pacific Healthcare uses approximately 1,500 sheets of X ray film per day. That is approximately $2,700 per day. If Mr. Rubbles chooses to go with DuPont which is the same quality as Kodak that would be approximately $2,250 per day. By choosing DuPont Pacific Healthcare with be saving about $450 a day. That is $3,150 per week and $12,600 a month by switching to DuPont. That is a huge saving for Pacific Healthcare. Pacific Healthcare can save money as well as keeping the same high quality as

Related Documents