Captiva

OUTLINE FOR CASE STUDY ANALYSIS

Case Name: Captiva

I. Major Facts

Al Carpenter, Materials Manager at Captiva Conglomerate, has called a meeting with his Inventory and Spares Manager, his Supply Manager, President of Operations, Vice President of Operations, vice President of Finance, and director of Information Technology to discuss their contract with Supply Operations Software. Apparently there are some major issues with their contract and how it’s written. Al has an agenda he wants to follow for the meeting: I. Status of the SOS contract, II. Development of a corrective action plan, and III. Lessons Learned. Even though Al seems to have invited members from different functional departments, he may have excluded those members who are experts in writing contract.

II. Major Problem

In order to present a contract that both the organization and supplier can agree upon this Statement of Work should be re-written and amended to clearly identify the specifications that should be performed and monitored. The contract calls for “best efforts, whenever possible, what does this statement mean? How is this measured? The regional and centralized inventory management system is 10 months behind it scheduled date. The spares management module test turned out to be a disaster, which is four months behind schedule and cannot be utilized by the functional area. There have been 17 un-priced change orders and they’ve used up the one million called for in the contract.

III. Possible Solutions

A.

Captiva must decide on what type of statement of work format fit them best in writing a

contract with Supply Operations Software. Supply Operations Software is a developer/supplier of a custom inventory management and spare parts management systems. Therefore in this situation a Functional S.O.W. should be utilized, which allows SOS to present Captiva the most efficient means to track, inventory, and manage their spare parts. Within the SOW Supply Operations Software will...