Diedre Collins GHE
Executive Summary
To: The President, Zest Industries
From:Deidre Collins, buyer-expediter for Global Heat Exchangers Inc.
Subject: Change in the Pricing of the Titanium Sheet Metal from our Supplier Titania for the Japanese Account
I would like to bring to your attention an error that was brought to the attention of myself via fax today by our supplier Titania Ltd. When we put together the final estimate for the Japanese Account I was using the most current catalogue and information provided by Titania Ltd to me as the resource to base the Titanium Sheet Metal Units on. This was an error on my part as well because I did not take the time to confirm that the pricing was indeed still the same. Unfortunately, I received this fax from Titania Ltd. today stating that the Titanium Sheet Metal Units have actually increased in the cost to us by a rate of almost an additional 25%. I am at a loss to how this information was not obtained or provided accurately to or by us until it was too late and the formal estimate has been signed.
This is what I would propose we do about this matter. I would like us to honor the formal estimate we provided to the Japanese customer. We will absorb the loss of revenue and look at gaining it back by obtaining future business in Japan. We can also spread the revenue across many of our sales so it will not be noticeable by our customers.
I have also taken the steps to contact the supplier to see if they will absorb the additional costs being we were not advised within enough time to change our estimate to reflect the increase in costs. If they are not amicable to the idea, I am looking at the possibility of bringing to their attention our long standing business we have provided over the years to them as our go to Titanium supplier and see if at the bare minimum they will split the loss with us.
I am also going to work with Charlie in Purchasing to be a team environment to utilize each other’s relationships and contacts with suppliers
To: The President, Zest Industries
From:Deidre Collins, buyer-expediter for Global Heat Exchangers Inc.
Subject: Change in the Pricing of the Titanium Sheet Metal from our Supplier Titania for the Japanese Account
I would like to bring to your attention an error that was brought to the attention of myself via fax today by our supplier Titania Ltd. When we put together the final estimate for the Japanese Account I was using the most current catalogue and information provided by Titania Ltd to me as the resource to base the Titanium Sheet Metal Units on. This was an error on my part as well because I did not take the time to confirm that the pricing was indeed still the same. Unfortunately, I received this fax from Titania Ltd. today stating that the Titanium Sheet Metal Units have actually increased in the cost to us by a rate of almost an additional 25%. I am at a loss to how this information was not obtained or provided accurately to or by us until it was too late and the formal estimate has been signed.
This is what I would propose we do about this matter. I would like us to honor the formal estimate we provided to the Japanese customer. We will absorb the loss of revenue and look at gaining it back by obtaining future business in Japan. We can also spread the revenue across many of our sales so it will not be noticeable by our customers.
I have also taken the steps to contact the supplier to see if they will absorb the additional costs being we were not advised within enough time to change our estimate to reflect the increase in costs. If they are not amicable to the idea, I am looking at the possibility of bringing to their attention our long standing business we have provided over the years to them as our go to Titanium supplier and see if at the bare minimum they will split the loss with us.
I am also going to work with Charlie in Purchasing to be a team environment to utilize each other’s relationships and contacts with suppliers