MEMORANDUM

Date:

October 12, 2015

To:

Mr. Kubler

From:

Gabriel G. Strelow, production and shipping Manager

Subject:

Saving Time and Improving Quality

We are losing money on our current supplier and wasting the time of
employees as well. I decide to change our supplier partner, and now we are
happy to say that we have a deal with Textile Images, Inc. a more reliable
manufacturer and also, my team and I have brainstormed some new policies,
products and procedures that will have financial benefits for our company
and help avoid the catastrophic failure that we faced before. For example,
just take a look at how much we will save with this new supplier:
Last supplier costs
Shipment (monthly)
$ 10,000.00
Price of custom Shirt (usually 20,000 units/month)
$
5.00 un
Total
$ 110,000.00
Textile Image, Inc costs
Shipment (monthly)
$ 8,000.00
Price of custom Shirt (usually 20,000 units/month)
$
3.00 un
Total
$ 68,000.00
As you can see, with our new partner we will save monthly $42,000.00
and with that money we can deal with the increase in initial costs required to
implement my proposed solutions in the near term. These solutions will
improve our company and make a better feedback to our customers and
besides that we will have cost saving in terms of products, supplies and we
will increase our labor force, improve our quality of merchandise and speed
of delivery. I took the liberty to calculate how much we would expend to
implement the solutions that I gave and you can see it as it follows:
Solutions
Merchandise (monthly)

$ 800.00

Increase speed of delivery (monthly)

200.00
Labor force (monthly)
$ 1,000.00
Total
$ 2,000.00
As demonstrated, we still will have a savings of $40,000.00 monthly
and this extra money can be used to innovation and creation and help to
develop new ways to increase more our company.
Please call me at Ext. 420 if you have questions. This new supplier and
the solutions proposed are such a good opportunity that I have prepared an
action plan to make it happen as soon as possible. With your approval before
October 20, we could have our new solutions implemented for the next big
job at October 30. Fast action will also help us take advantage and make our
customers happier. Can we have a meeting so I can explain these face to
face for you?