The Pacific Healthcare Company Case Study

There is an old saying in business that if something isn’t broken then don’t fix it, but that is very far from the truth. Sometimes when doing business managers get comfortable with their business partners, and do not take the time and effort to look at what the competition has to offer. Not taking the time to look at the competition could mean a few things, one that the manager is very loyal to their business partner, which sometimes happens in character base trust, or the manager is just to lazy to do the leg work to find the best prices for his company. Not allowing competitors to compete takes away from a business ability to maximize profit, it allows one business to set prices and not meet different competitive demands. Another mistake company’s make is having someone from outside a department make decisions that someone from that particular department should be making. Most of the time the outside individual does not have adequate experience and training to make the best decision in the interest of the company.

The first mistake that was made by pacific healthcare company was making Mr. Thurston Howell, the director of radiology in charge of supplier selection of X ray film at the company. Mr. Howell may have had the world of experience in radiology, but that does not means that he has any experience in Supply Chain Management. This choice made by the company, cost them thousands of dollars in losses over the past fifteen years Mr. Howell was making decisions on supply selection for X ray film. Another problem that the company had, which resulted from Mr. Howell inexperience in Supply Chain Management, was allowing Kodak film to be the only authorized film provider for the company. Because film companies were not allowed to compete, Mr. Howell failed to see that Kodak film was by far the highest among its