Executive Summary
Memorandum
From: Jared John Hicza
Procurement Manager
To: Jim Hicza
Re: Selection of Supplier for Presses
My recommendation is to go in for a single source and choose the supplier that we have confidently have had a relationship with, without a problem, for over a decade now.
Major of Action plan:
• Choose JabaKing as the supplier of choice.
• Get an investment loan from Labour Central Credit Union @ 5.25% for next 10 years.
• Visit an operational facility using JabaKing’s presses.
• Procure presses from JabaKing with appropriate people assigned duties and with proper checks in place.
• Commission the presses with assistance from Jabaking.
• Evaluate maintenance for the first three warranty years and then
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That apart, even though the presses will be covered under a three year warranty, in case there is damage to even one piece of equipment during transportation, it will mean that our growth and expansion project will have to suffer a major setback and we will have to face major delays.
Some positives for this supplier are that it will help us in commissioning and in case of any major breakdown, Merakuri promises us next day service, as the company has a distributor located in Regina. This in itself increases our confidence, as we know that Merakuri is a big enough fish to have its distributor in Canada.
The rookie, Pnutype – A total novice in the market, this company utilizes state of art technology. The technology is so good that it produces excellent results. If Pnutype presses are acquired, it will give our company an edge over our competitors.
There are a few drawbacks to Pnutype and its presses. This company has been making presses for only two and a half years. Among all of the prospective suppliers for the new presses, Pnutype has no proximal presence. Its closest presence is in the United States. Considering our top management being high level of cost consciousness, Pnutype presses are, by far, the most expensive option.
It, however, has the reputation of its presses requiring zero maintenance. One company that uses Pnutype presses provided this feedback.
See Appendix 1 for the weighted evaluation matrix.
Alternatives and / or
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