Zurin Industries (A)

YOGESH NEMA VA R U N M A H A J A N KASI MUTHU

 The Case : Customer Relationship Management Strategies The Company : Zurin Industries
Switzerland Based Sales of Francs 5.6B , profit 426 M, RO Sales 7.6% Industrial Plastics, Diesel Engines, Industrial Components, Air & Gas Compressors

The Product - Air & Gas Compressors

Standard or Specialty

Regulating flow of liquids or gases in plants 40% Sales from Europe , Others from US , Asia

Supplier Competitive Advantage

Product Quality Durability

Zurin

OEM/Others

Ability to solve customer problem

Suppliers

Heavy dependence of engineering and developmental skills of suppliers Lot of time / R&D to develop new product

Sourcing Strategy
Inception Participation Decision R & D Sourcing Production Sourcing

 Ericson
Sweden Based Fixed price No disclosure of costs Zurins primary almost exclusive supplier

France Supplier Gordier

Cheaper Zurin bought total quantity produced

The Issue : Ericson has increased price of XK1000 steel 3x times Recommendation
Check with other competitive suppliers in Sweden and verify Lobby Swedish government on price decisions Acquire Gordier Check time buffer with Germans- Negotiate for XM5000 with other suppliers Check with manufacturing team for pending orders for XK1000 grade steel If small , then can the schedule be modified to accommodate Gordier Steel Negotiate with Ericson to raise prices linearly