The purpose of the meeting was to discuss investigate the various issues that would benefit both Company A and COMPANY B in the scope of contemporary operations and future business opportunities.
1.It was presented by Company A that COMPANY C is going to take over COMPANY B’s current role as a vendor of COMPANY D because Company A was informed verbally of this by COMPANY C of this arrangement in the beginning of 2008. Mary elaborated how the negotiations between COMPANY B and COMPANY C are going and clarified that this issue is still in negotiations. The business relationship between Company A and COMPANY C will remain the same until further update.
2.Mary explained the nature of COMPANY B's business. COMPANY B has expertise in ceramic products, but also supplies VC, toy, tap, etc, in the NORTH. Main customers of COMPANY B are COMPANY D (60%) , high street store(30%) and as a supplier of fittings for new buildings (10~12%). In regards to the economic recession in the NORTH, COMPANY B forecast 2009 sales as gloomy. Sue also commented that the quantity of sales in January would be considered critical, since it could statistically reveal the YTD sales for the year.
3.New factory facilities were presented to Mary and Sue in brochures which highlighted brief descriptions and pictures of the new production site. COMPANY B showed interest in the bath tub products. Kidd has explained the bath tub products are installed with massage functions and Company A is aiming for the mid-range market. The vertically integrated processes for enclosure production and bath tub products was emphasized by Company A and Kidd has agreed that Company A could consolidate enclosure products, bath tub products and furniture product upon request from COMPANY B. Mary also provided the email address of Lisa for Company A.
Company A follow-up actions: Company A will need to prepare product review for the 2009 program and any other new products of interest for COMPANY B and send to Lucy Humphries as soon as possible.
4.Mary and Sue requested that Company A keep stock accordance a fixed forecast provided by COMPANY B in a one-month forward basis, in order to increase the flexibility of order quantity of the product by stock buffering. Sue also requested Fanny to provide weekly inventory levels. Company A responded that the suggestion will be discussed internally by Company A and will get COMPANY B an update on this issue.
Company A follow-up actions: Fanny will discuss the feasibility of this matter with the factory on 4th November 2008. The proposal of what Company A could achieve will be updated to Sue by Fanny as soon as possible.
COMPANY B follow up actions: Sue will send Fanny a detailed report about a suggested ordering system that could be ideal for COMPANY B.
5.Mary was concerned about the defective level of Company A’s products as the complaint service log of Company A’s products is about a third of COMPANY B’s CS department. Fanny updated COMPANY B’s production that was moved to Company A’s new factory in March 2008. Several product improvements have been done and viewed and have been approved by the QA manager, Andrew Ritchie. The clam packs will be used by on-going COMPANY B’s orders starting January 2009 and Company A believed that the problem of missing parts in the package could be terminated.