To: Jim Hunking, General Manager - XYZ, London
From: Linda McGuire, Purchasing Manager - XYZ, London
Subject: Photocopier Contract at Head Office
Issue: As you know, this contract renewal process has taken about 11 months, without a clear conclusion yet. I have analyzed the work done thus and would like to propose the following as our new Problem Statement for this requirement. " XYZ Canada must find the best overall solution to its' document management requirements; optimizing costs, technology, process efficiency and customer support capability." We considered various other options to conclude this assignment, as follows: * Issuing an RFQ
* Hiring an external Consultant
* In-source or out-source more document processing
Although these were viable, we feel that the RFP process will provide the best strategic solution for XYZ, while also achieving a much better long-term solution. We would require at least another two months for this process, while keeping the current units on a monthly contract, to ensure ongoing operations for the interim. Some consulting and additional training will also be needed to guarantee full success in this project. The added costs will be easily covered by the greater benefits expected from the concluding result. Details are in the attached report. I look forward to receiving your approval of this recommendation, so that it can proceed immediately.
| So What ?
Timeline: Acquisition process started 3 mos prior to expiration of current agreement. It is now 8 mos after expiration, which = 11 mos for process. There is an expectation that a final decision is now needed in a month from now.
| This is ridiculously long ! It should never have taken this long and it appears as though the Purchasing group doesn't seem to know what they're doing ? The 1 month deadline is impossible to meet, with provision of a solid, long-term solution. This will bring the total time-line to 1 year !
| Current copier status: The present copiers are old technology (analogue) units, which are showing their age with increased quality and breakdown problems.
| Time is past running out on the present equipment and administrative efficiency will be effected to an even greater degree as time passes. As well, the credibility of the Purchasing group will be called into question. It could even effect customer service or at the very least increase administrative operating costs.
| Goals given: The G.M. gave 3 objectives. 1)Stay within the current budgets.2) Add more equipment to cover growth in business and staff.3) Look into the new digital technology and any opportunities which it might offer.
| 1) Focus on $ only, appears to be the primary objective of the Purchasing group, with very little thought put to looking for the best TCO - Total Cost of Ownership or "solution". Tactical NOT Strategic !2) More growth, requiring greater "capacity", is translated by Purchasing to mean another copier unit. This is assuming the same analogue technology as in place now, without any research into the options possible with the new digital equipment. Very "clerical", reactive in mindset.3) This is the last given, but in fact should be the first in priority for Purchasing. The "strategic" viewpoint can be found in this goal !
| Players: Many players kept getting added as the process crawled along. Both internal functions(LAN)/stakeholders(I.T.) and externally with more vendors (3to 6).
| This added new criteria and goals to the acquisition and complexity without consistency for the acquisition activities. "They appeared to be making it up, as they went along", without any clear plan or strategy. This cannot continue and with the present approach, a final satisfactory conclusion doesn't look at all possible.
| This has Tactical written all over it !
| Unless you can take the time to look at the whole picture and determine what the ACTUAL STATEGIC GOAL is,...
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