Essays on Procurement and Purchase - Katsand Wines Case Study

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The paper "Procurement and Purchase - Katsand Wines" is an outstanding example of a marketing case study. This is a report of a business nature concerning the company Katsand wines, situated in South Australia is experiencing some shortcomings. A company specializes in wine production. Some of its wine variety currently includes Pinot Gris, Sparkling Red and Merlot among others. Procurement issues are bringing these shortcomings forth. The company is finding it highly difficult to operate smoothly having to outsource. It was at the beginning and for a while outsourcing in bottling, crushing and fermentation requirements.

This report is aimed at coming up with solutions and long term strategies to help Katsand overcome its current problems. However, currently, the company boards of directors are finding ways to get sustainable procurement. They are using a new type of materials in corks and recycled products. They have also been able to conduct market surveys and find which varieties of their wine stock are popular with their market. This is one strategy to reduce the operating cost of dormant goods. By studying this company and the problems it is experiencing in detail the company directors, will run it more effectively.

Other companies and promoters of companies will be able to learn from these and hence make decisions that are more informed. Current Procurement Issues These are the various challenges facing Katsand Wines in procurement. The company has a small production area, which limits the production of wine effectively and efficiently. Space is made smaller by the presence of a 1500 kg crusher, fermentation tanks and Oak barrels. In addition, to this, the winery would not be able to accommodate the bottling of wines and it leads to shipping to another large company.

This may lead to an overreliance on the other company, as they have no alternatives. This also increases their expenses and their estimated budget. Production of varieties as the brand is getting awareness from the market. Katsand though does not produce some of the varieties available. They include Traminer; Sauvignon Blanc and Cabernet Sauvignon.  

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