Butler Systems Case 7
Butler Systems and SDX Chemicals have reached a crucial point of their business relationship. These two companies have built a working relationship that has existed since 2005. They companies know one another and have built a committed relationship to one another. What happens next could either resolve the affair or terminate the arrangement and commitment the two companies have created over the previous years. After assessing the situation, the Vice President must decide which action to take, prevent this from occurring with future companies, and determine key learnings and recommendations moving forward (Benton 2010).
Butler systems mass-produces environmental control systems as well as power conditioning equipment. They are prominent in this field and well-known. The company has passed 1 billion dollars in sales and is doing exceedingly well for themselves. The fundamental component to their emergency power supply (EPS) system is the HD-5 battery. This battery is supplied to Butler Systems by SDX Chemicals. The EPS is a system constructed to avoid malfunctions and withstand temporary power outages in computer network systems. This will deflect data loss and critical hardware impairments. Being the battery is so crucial to the output of Butler Systems products, finding a battery supplier that is impeccable is one of the most critical processes the firm is challenged with (Benton 2010).
The vice president of operations is troubled by the low volume of HD-5 battery inventory on hand. Typically a 90 day supply is kept at the warehouse but it has been realized that only a 20 day supply of batteries are currently on hand. Furthermore, Butler Systems has not received a battery shipment in the last two months. Butler contacted SDX Chemicals a week ago to examine the status with them. It was during this time SDX stated the price would be doubled and the current contract with Butler Systems had been cancelled. It was also revealed during this conversation SDX is
Butler systems mass-produces environmental control systems as well as power conditioning equipment. They are prominent in this field and well-known. The company has passed 1 billion dollars in sales and is doing exceedingly well for themselves. The fundamental component to their emergency power supply (EPS) system is the HD-5 battery. This battery is supplied to Butler Systems by SDX Chemicals. The EPS is a system constructed to avoid malfunctions and withstand temporary power outages in computer network systems. This will deflect data loss and critical hardware impairments. Being the battery is so crucial to the output of Butler Systems products, finding a battery supplier that is impeccable is one of the most critical processes the firm is challenged with (Benton 2010).
The vice president of operations is troubled by the low volume of HD-5 battery inventory on hand. Typically a 90 day supply is kept at the warehouse but it has been realized that only a 20 day supply of batteries are currently on hand. Furthermore, Butler Systems has not received a battery shipment in the last two months. Butler contacted SDX Chemicals a week ago to examine the status with them. It was during this time SDX stated the price would be doubled and the current contract with Butler Systems had been cancelled. It was also revealed during this conversation SDX is
References: 1. Benton, W. (2010). Purchasing and supply management. Boston: McGraw-Hill Irwin. 2. My supplier failed to deliver the products that I needed on time. Can I sue it for a breach of contract?Posted:. (n.d.). Retrieved March 23, 2015, from https://www.mylegalbriefcase.com/faq/47/my-supplier-failed-to-deliver-the-products-that-i-needed-on-time-can-i-sue-it-for-a-breach-of-contract