Cottrill Position Paper

Ernestine Shane Amandy TE302

Aaron Arellano EXPURMA

Arvin John Modino Mr. Dimaculangan

Mario Joshua Mariano

CONTRILL INC. POSITION PAPER

Suggestion: Switch to Saxton

Reasons for switching:

First of all, Tallant no longer carried current model and the option of renting the pager hardware would be discontinued in the near future. Second, choosing Saxton would comply with the overall organization’s goal to reduce the level of their working capital. By switching to Saxton, she can make sure Saxton can achieve the goal of Cottrill for Saxton is lower in cost than Tallant. This is because when we compute for the cost that Tallant can incur the company from its monthly pagers’ cost up to the maintenance fee, Saxton is much of a money saver than Tallant. Cost wise, Saxton offered a great deal than Tallant.

Other reasons for switching suppliers is Saxton’s faster response for problems. Even though Saxton has lesser experience and assurance relevant to the operations of Contrill Inc., they can be assured that they can easily contact Saxton for maintenance if problems occurred. They have direct contact with the sales representative as compare to Tallant on which the firm will have to wait for almost a month for them to fix any problems with the pagers. Besides, if they would continue with Tallant, considering that downtime is very critical because their operation is continuous, greater loss might incur them for Tallant has a very low response when they were asked for maintenance.

Conclusion:

For us, choosing Saxton over Tallant is the optimum choice. This is because lowering working capital cost is the primary goal of the organization. We know that choosing a new supplier is critical specially in their case, but they can be assured that it can easily be fixed for Saxton has reliable support than Tallant. The problem Saxton incurred when it tried to make their product compatible with Contrill’s operation system posed a little risk only and was easily fixed....