Don't Shoot the Messenger

Don’t Shoot the Messenger

Presented to

Professor Willy Cuason

Decision Sciences and Innovation Department

De La Salle University - Manila

In Partial Fulfillment of the Requirements for

SUPPMAN, Term 1, AY 2015 - 2016

Submitted by:

Group 8

Chua, Michael

Galang, Patricia

Muyrong, Angelica

Nuqui, Homer Joseph

San Jose, Aaron

Guillermo, Victorino

K32

September 17, 2015

TABLE OF CONTENTS

Summary of Findings 2

Background Information 2

Problem Statement 2

Analysis of Alternatives 2

Detailed Recommendations 3

Answer to Case Questions 3

Learnings 4

Summary of Findings

This study was conducted for the purpose of finding out which course of action Jeff Martin, Billings Equipment Incorporated’s supply management engineer, is supposed to take after being torn between his responsibilities to the general manager against carefully developed supplier relationships. In the group’s findings, there is a cost-reduction issue that they have to address concerning them with their suppliers. This issue is putting pressure on their manufacturer-supplier relationship. Also, with regard to their general manager’s ethical behavior, the group can say that the company is still looking for ways to improve their decision management.

Background Information

Billings Equipment Inc. is a company in Seattle that formed a new business unit and opened a plant in June 1998. It produces a line of earth-moving machines for the construction industry. Moreover, the company had strong ties and good relationships with its suppliers, and was considered to be at the top of its industry.

Problem Statement

How can Billings Equipment Inc. achieve its goal in getting a 15% cost reduction from their long-term key suppliers, and at the same time maintain their ethical relationship with them?

Analysis of Alternatives

Alternative 1: Go with it

Advantages:...