Never Summer Case Study

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Another strategy suggested for Never Summer is to change their current strategy of JIT. Is is advised that additional carbon fibers should be added when placing an order based on the estimated boards they are going to make. Since that carbon fiber is an important part of the product and most of the snowboards in Never Summer does have carbon fiber implemented in it, there won’t be any problem of having excess carbon fiber in their inventory. This will solve any urgent needs for carbon fiber during the production and since Never Summer’s sales are seasonal, it is best to maximize their profit during that period instead of having to switch or cancel production due to the lack of materials. This strategy works for not only carbon fiber but all other commodity that is cheap and also used frequently in Never Summer’s product. …show more content…
The shipping agency offered will be agencies that have good services and are mostly on-time. Never Summer can sign contracts with the shipping agencies they selected through past history evaluation, using the categorical method to evaluate their cost, quality, and services. These contracts will involve a long-term relationship among suppliers, Never Summer, and the shipping agency, requesting a discount in price for shipping that can benefit both the supplier and Never Summer. Never Summer will act as an intermediary that links their supplier with the shipping agent. If shipping becomes cheap but quality guaranteed, Never Summer is able to request a reduce in purchase price from their supplier, while also decrease their supplier’s risk in shipping issue. That way their suppliers wouldn’t be too worried about late delivery that might cost them an issue and also the risk in profit

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