Case 1 Erica Carson Student Template
Case 1-2: Erica Carson
Name: ________________
Group: ___A or B________
Date: ________________
Situation:
Erica Carson is PM for Wesbank, a financial institution (note: You are Erica)
Reports to VP Supply
Unsolicited bid from Art Evans, Sales Rep. Killoran Inc.
10% reduction on printing and mailing of checks not current supplier
Westbank provides free checks at a cost of $8M per year
Current situation – 50% split suppliers, last 5 years
Supplier A prints and mails 50% checks, renewed contract 8 months ago
Supplier B prints and mails 50% checks, contract expires in 4 months
Each 2 year contract, good quality and service
Costs studied one year ago, determined pricing was fair BASIC ISSUES; (note - tie to elements from textbook)
1. Purchasing for a service organization.
2. The price, quality, delivery, service trade-off.
3. Supplier selection and splitting of business.
4. The purchase of services.
5. Treatment of unsolicited proposals from suppliers
Tasks:
What does Erica do?
Does Erica consider the bid? 10% savings = $800M
Status quo
What are alternatives? Need to weigh alternatives.
Complete cost-benefit analysis
Are checks really needed?
What is core competency of bank?
What is business imperative with checks?
What is company / VP Supply policy on unsolicited bids?
Does this bid and subsequent action fit business goals and objectives?
SUGGESTED QUESTIONS FOR DISCUSSION;
1. What importance is the check printing to the bank?
2. How would you do a cost analysis on a check printing order?
3. How would you evaluate a supplier of check printing for this bank?
4. How many suppliers are desirable for check printing?
5. What alternatives are open to Erica Carson here?
6. What action will you take? Why?
Actions:
Talk to VP Supply, review proposal
Review cost – benefit analysis?
Present case to upper management
Determine if Killoran is viable supplier?
Supplier audit – process capability
Supplier trial run – service, quality, cycle time, order
Name: ________________
Group: ___A or B________
Date: ________________
Situation:
Erica Carson is PM for Wesbank, a financial institution (note: You are Erica)
Reports to VP Supply
Unsolicited bid from Art Evans, Sales Rep. Killoran Inc.
10% reduction on printing and mailing of checks not current supplier
Westbank provides free checks at a cost of $8M per year
Current situation – 50% split suppliers, last 5 years
Supplier A prints and mails 50% checks, renewed contract 8 months ago
Supplier B prints and mails 50% checks, contract expires in 4 months
Each 2 year contract, good quality and service
Costs studied one year ago, determined pricing was fair BASIC ISSUES; (note - tie to elements from textbook)
1. Purchasing for a service organization.
2. The price, quality, delivery, service trade-off.
3. Supplier selection and splitting of business.
4. The purchase of services.
5. Treatment of unsolicited proposals from suppliers
Tasks:
What does Erica do?
Does Erica consider the bid? 10% savings = $800M
Status quo
What are alternatives? Need to weigh alternatives.
Complete cost-benefit analysis
Are checks really needed?
What is core competency of bank?
What is business imperative with checks?
What is company / VP Supply policy on unsolicited bids?
Does this bid and subsequent action fit business goals and objectives?
SUGGESTED QUESTIONS FOR DISCUSSION;
1. What importance is the check printing to the bank?
2. How would you do a cost analysis on a check printing order?
3. How would you evaluate a supplier of check printing for this bank?
4. How many suppliers are desirable for check printing?
5. What alternatives are open to Erica Carson here?
6. What action will you take? Why?
Actions:
Talk to VP Supply, review proposal
Review cost – benefit analysis?
Present case to upper management
Determine if Killoran is viable supplier?
Supplier audit – process capability
Supplier trial run – service, quality, cycle time, order