Memorandum
From: Jared John Hicza
Procurement Manager
To: Jim Hicza
Re: Selection of Supplier for Presses
My recommendation is to go in for a single source and choose the supplier that we have confidently have had a relationship with, without a problem, for over a decade now.
Major of Action plan:
• Choose JabaKing as the supplier of choice.
• Get an investment loan from Labour Central Credit Union @ 5.25% for next 10 years.
• Visit an operational facility using JabaKing’s presses.
• Procure presses from JabaKing with appropriate people assigned duties and with proper checks in place.
• Commission the presses with assistance from Jabaking.
• Evaluate maintenance for the first three warranty years and then budget accordingly for the next seven years.
Jim Hicza
Procurement Manager
Table of Contents
Executive Summary Page 1
Table of Contents Page 2
List Issues with Impact Analysis Page 3
Environmental & Root Cause Analysis Page 4
Alternatives and / or Options Page 6
Recommendation Page 7
Implementation Page 7
Monitor & Control Page 9
Appendix 1
Appendix 2
List of Issues with Impact Analysis
Platinum is on the verge of major expansion. At this stage, the main issue facing the company is whether to single source the press or utilize multiple sources for the press.
Platinum has had a long-standing relationship with JabaKing, where the latter had helped the company out over a decade when no other supplier was ready to do business with the company. JabaKing had made it evident at that point in time that it was a favor that was expected to be returned.
Currently, due to the expansion and growth prospect, Platinum needs to decide which supplier / suppliers it will utilize to make a purchase of 5 additional presses for its operations in Winnipeg. It is very important that the company take a decision with immense due diligence, as the procurement / purchase entails long-term