Judy Stevens Purchasing Supervisor Cottrill Inc.

Columbus

Ohio. Reviewing Proposal from Saxton. Dissatisfied with Existing Supplier of Cottrills Paging System. Representative from Saxton expecting her reply later this day.

 Established in Mid 1800s Largest Corn refining operation in North America Industry leader. Continuously developing New Products,

Technologies & Mfg. Processes. Products: High Fructose, Corn Syrup, Starch, Glucose. Supplier for Baked Foods, Beverages, Confections, Corrugating, Paper & Processed Foods Industry.

 Ensure plant run effeciently Replenishment variety of supplies ranging from Chemicals to

Communication equipment To reduce working capital $300000 annually One supervisor reporting to Judy. Working with great autonomy.

 Products manufactured through continuous process flow Downtime $200000 per hour Software program Production-messaging. Paging system Installed by Tallant 12 years ago 20 pagers. Grouped by process. Issue warning message of any malfunctioning & anomalous

machine statistics to concern staff and technicians

 Open ended contract with existing supplier required 30 days notice Complicated help-line of Tallant Un-satisfied experience of maintenance and replacement

 Simpler fee structure Large wireless service No experience or established reputation of in-plant wire-less

messaging system Existing pager nos. to be changed and staff to be informed. New system tested with few problem. But was controlled and fixed by system team.

 To pay both companies during transition period. Purchasing supervisor worried about transition, implementation &

functionality System group have no issue about switch-over provided that new system would function properly with existing software.

Complicated $8592/year

Service

Complicated - Help line

Experienced - High

Simple - &3348/year

Service

Simple Direct Representative

Less - Inexperienced

 To Re-negotiate with existing supplier Terms & Condition similar to

Saxton Due to time Constraints not possible. Sudden switch of supplier may hamper companys image. Due to functionality and reputation concerns. It is suggested to gradually switch to new supplier, e.g. Initially start with 5 pagers of new supplier.

Conclusion: Suggested, Switch to New Supplier