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SCM 355 Presentation

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Wangpiaoxue Shi Shi

on 11 April 2014

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Transcript of SCM 355 Presentation

Case 10-1 Cottrill Inc
Option 1: Purchase Tallant pagers instead of renting
Option 2: Negotiate contract with Tallant
Option 3: Look into paging system market for any additional potential service providers
Effects of Possible Weekly, Hour-long Downtimes
Dissatisfied with current Tallant's paging service
Tallant's pagers need constant replacements
Renting pager hardware may be discontinued
Company initiative: reduce level of working capital
Large international wireless company
ProductionMessaging software for last 12 years
Pagers grouped by process
Simpler fee structure and lower overall cost than Tallant
Natalie, Saxton sales representative, is easier to communicate with
Ability to test pagers
Saxton Proposal
Current Paging System - Tallant
Purchasing Department Problem
Largest corn refining operations in North America
Operates 6 wet-milling plants
Competes in B2B segment
Ensures product reliability & consistency
Columbus plant
Cottrill Inc. Background
Inform them of Saxton's prices and coverages
We believe they can match the offer from Saxton
Q: What would you say to the sales representative at Tallant? Do you think they could match the deal with Saxton?
Q: Do you think that Judy Stevens would be considering switching suppliers at this time unless Natalie Hopkins had contacted her?
Reduce level of working capital annually by $300,000
Production line - continuous flow process
Large degree of autonomy
Q: What are the costs of the two contracts? How much money can Cottrill save by switching suppliers?
Cottrill Inc. Background
Purchasing Department Problem
Current Paging System - Tallant
Saxton Proposal
Other options
Group Four:
Haylee Hilgers
Jessica Lin
Wangpiaoxue Shi
Cameron Naughton
Zach Baumgartner

Total Savings = $4244
Stated 1 warning per week
Assume 1 serious warning per month
Assume downtime is between 0 minutes and 120 minutes, 60 minute average
Tallant customer service, time consuming
Saxton's customer service, instant
Preventable downtime based on the improved customer service of Saxton
Q: What risks are associated with switching to Saxton? Do the cost savings outweigh the risks?
Risk 1: No established reputation
Risk 2: Unclear if Saxton has necessary experience to handle technological requirements
Risk 3: Paging service time frames could overlap
Risk 4: Existing pager numbers would need to be switched
Risk 5: Feasibility of implementing new system
Q: What other options would you consider?
Option 1
Option 2: Negotiate contract
Use Saxton's quoted price as leverage
Obsolete Tallant products -> buyback or financial compensation to upgrade
Notify all personnel with pagers
Increase flow of information sharing
Option 3: Additional potential service providers?
Full transcript