Free Report Example on Bergerac System

Introduction

Bergerac system is involved in the development and manufacturing of in-house diagnostic tools used by veterinaries and started in 2001. HemaVue was the first product that was produced. It was an automatic cell counter which delivered complete blood tally within minutes. This article will focus on the challenges faced by the Bergerac system company.

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Later in 2004, other disposable diagnosis kits for diseases like heartworm, Lyme, and giardiasis were produced. Instruments and specialized cartridges are the main two components found in Bergerac products. Bergerac company relies on third-party companies to provide them with these components are plastic materials. The nature of plastic has put stress on these companies, which has led to challenges in the Bergerac Company (Mathur, 2019).

Critical Components

Most of the instrument division and critical components of the Bergerac products are delivered by external contract manufactures. Due to this, the Bergerac Company has less or little control of the operational processes in those companies. Another factor is that the production of Cartridge requires reagents and special injections, which are modeled by plastic (Mathur, 2019). Therefore Bergerac Company has to import reagents supplies from different third-party companies, which are located in a different location, thus consuming a lot of time. Also, Bergerac Company faces uncertain economic challenges because it’s two prominent plastic supplier companies are facing stiff competition, which made them have a low buying power (Rungi, 2020).

Current Suppliers

Yes, Bergerac Company should incorporate the manufacturing of its injection-molded instruments because of the current suppliers failing to meet the agreed demands, therefore, allowing Bergerac to have full control of their supplies based on the current market, thus reduce the chances of shortages. Bergerac supplies have two options: First, they may decide to buy off GunieTech, which would be good if they want to save on the troubles of productions. Second, Bergerac may construct their manufacturing line. Bergerac supplies would have more flexible and advanced machinery used in molding, but it would cost them time (Rungi, 2020).

Advantages

Some of the advantages of acquisition against in-house development capabilities in Bergerac Supplies include: (a) Bergerac will have more diversifying opportunities and revenues because they can use the four molding machines in other businesses. (b) Bergerac Company will be able to accommodate new advanced molding machines in the company. (c) Bergerac company will not experience capital cost that emerges from employing and then training its employees. The disadvantages of acquisition against in-house development in Bergerac Supplies include :(a) The company will experience a higher overhead cost. (b) The payback period would be higher in contrast to in-house production. (c) Both the cycle time and uptime would be higher.

Evidence

Strong evidence shows that it would be easier for Bergerac Company to acquire GenieTech rather than constructing its in-house production lines. By acquiring the already established GenieTech company, Bergerac company would save on the entire process such as machines installations, employing and training new workers, and the preparation of the dedicated floors. Based on the quantitative measurement, the only downside to acquisition is that it would take a lot of time to break even the amount of money used in that investment (Mathur, 2019).

Conclusion

I would advise that Wyckoff should consider the growth of the market, whereby if only four molding machines were enough to satisfy the current demand. Additional devices can purchase in case the demand rises in the future. Also, Wyckoff should have backup machines for any anticipated problems that may arise. Finally, because most of the HemaVue or OmniVue vital components come from several third-party suppliers, Bergerac should incorporate a resilient strategy by developing an in-house that is capable for HemaVue or OmniVue.

References

Sharma, D., Khatri, A., & Mathur, Y. B. (2019). Implementation of Backward Integration of Supply Chain Management in Papad Industry: A Case Study. Journal of the Gujarat Research Society, 21(15), 541-549. http://gujaratresearchsociety.in/index.php/JGRS/article/view/1706

Del Prete, D., & Rungi, A. (2020). Backward and forward integration along global value chains. Review of Industrial Organization, 1-21.
https://link.springer.com/article/10.1007/s11151-020-09774-y.