Write conclusion essay for the case study that includes the basic issues and questions 1 thru 10
Current Issues and Cases Studies in Procurement & Supply Management
Paul Travers, Purchasing Manager for the Talbot County School Board, was deciding on his next move. In February, the new owners of the company that serviced photocopiers in Talbot County’s schools notified Paul they would be increasing prices by over 50 percent. Paul knew school budgets had already been set and wondered what to do next
Paul had worked as the purchasing manager for the Talbot County School Board for 20 years. He was responsible for all of the purchasing requirements for the county’s public schools. These purchases included items such as snow removal, window replacement, and servicing photocopiers.
Budgets for all schools were typically set early in the year. Budgets were based on existing or new contracts for the services and appropriations that would be necessary for the school in a given year. School boards typically received their funding from municipal and state governments. Because of the funding cuts made at all levels of government, school boards were feeling pressure to cut costs wherever possible, and increasing expenditures once budgets were set was increasingly difficult.
Photocopiers in Talbot County’s Schools
Each school in Talbot County had at least one photocopier. If the photocopier in a school broke down, it required immediate servicing, typically same day, as it was the only source the school had for making copies of office and class materials. Over the course of one year, Talbot County’s schools collectively made approximately 8 million photocopies. These photocopiers had been purchased by the school board five years ago and required servicing and toner replacement on a regular basis.
Paul had dealt with Sigma Servicing, a photocopying service company, for the past six years. The school board never had a written contract with Sigma, but the company had held prices at 0.9 cent per copy over the length of the relationship and never indicated any displeasure with the arrangement. The cost per copy included the service charge and the charge for toner necessary over the course of the year, and was paid in advance by the school board.
Last November, Sigma was purchased by an individual who had been in the service business a number of years ago and decided to reenter the market. Upon taking over the company, he began an examination of the existing service arrangements Sigma had with its customers. The new owner discovered that the business with the Talbot County School Board was actually operating at a loss and proceeded to inform Paul in February of his intention to raise prices and seek a new contractual agreement with the school board immediately. Otherwise, Sigma would withdraw its services.
The New Deal
The new owner of Sigma wanted to change the relationship so that service and toner charges would be applied separately to the school board’s photocopiers. The new total price would amount to 1.4 cents per copy, instead of the existing 0/9 cent per copy. Sigma also wanted any new deal to be retroactive to the beginning of the year so it could recoup the losses.
Paul expected that the new price of 1.4 cents per copy was competitive with other companies. However, he requested that Sigma explore some alternative pricing options for the toner charge. As a result, Sigma undertook two studies, one in which generic toner was used instead of the brand the school board currently used and another in which toner was recycled with the use of a special container. The result of the first study showed that the yield from the generic toner was a disappointing 4,000-5,000 copies per bottle, indicating limited cost-savings opportunities. The second study indicated that the yield was 7,500-10,000 copies per bottle when the toner was recycled, resulting in a potential cost savings of about 0.2 cent per copy.
Paul was frustrated by developments with Sigma. He had enjoyed a good relationship with the previous owner and was personally proud of the deal he had received during a time of budget cuts. Furthermore, he knew that the negotiations with the new owner would be drawn out and would require a great deal of time in his busy schedule. The negotiations also would be difficult in light of the fact that Sigma felt they had lost money on the previous arrangement, and that schools had already set their budgets for the year.
At this point Paul felt he had several available options. First, he could agree to pay the higher price with Sigma. He was concerned, however, about the budget implications of this alternative. Second, he could ask Sigma to use a recycled toner, thereby avoiding a portion of the price increase. Third, Paul considered his possibilities of exploring relationships with other vendors.
Paul considered his options and wondered what he should do next. The issue of Sigma’s request for a retroactive price increase effective the beginning of the year had to be taken into consideration when making his decision. He knew that he had to respond quickly as the schools required constant servicing and new toner for their photocopiers.
What is your assessment of the current situation at the Talbot County School Board regarding photocopier servicing? As Paul Travers, what action would you take next and why?
QUESTIONS FOR DISCUSSION
1. As an employee at Talbot County School Board, what are your purchasing needs here?
2. What are the economics of the situation? How significant is this matter?
3. What are the major budgetary items in a school board’s budget?
4. How effectively has Paul Travers performed his job regarding the photocopier service contract?
5. How do you define quality here?
6. Do you think Paul should negotiate a contract for photocopier services? How long do you think it should be?
7. What do you think of the option to recycle toners?
8. Should Paul send the contract out for bid?
9. Should Sigma receive a retroactive price adjustment?
10. Why did Paul continue to use Sigma when he suspected or knew their prices were 50 percent below the market cost?
The capacity of managing startling and sudden occasions that irritates groups and changes in association culture is known as emergency administration. As of late we have possessed the capacity to palpate transboundary emergency, that have influenced partners in various structures. For instance, the 2011 tidal wave of Japan, which interfered with production network everywhere throughout the world, particularly in the car business (Crandall, Parnell and Spillan, 2010). This craft of managing emergency requires aptitudes and information to sort out partners' recuperation. Emergency administration readies the individual to create abilities in a surprising and unfriendly conditions inside the association of a crisis reaction with bravery and assurance. The coordination of the crisis reactions to a more extensive episode that debilitates to hurt and wreck structures, capacity to work viably and proficiently. The continuum assessment of the arranging and programmed episode reaction turns into a noteworthy piece of the procedure in an emergency administration design. Authoritative assets accessible in an emergency in Dominican Republic. As per Crandall, Parnell and Spillan (2014) there are nations and societies that are known as "emergencies arranged", on the grounds that they have possessed the capacity to prepare and bolster any emergency wanting to conquer their shortcoming. The Dominican Republic isn't the special case, when an emergency emerges the group and Dominican Civil Defense are the first to react to the crisis, as people on call. All things considered, not every person is set up to help someone else or accept a part of initiative during the time spent a crisis emergency. The national crisis and correspondence framework, known as the Center for Emergencies Operation, [COE], in its part of the main office across the country in an emergency, and reacting association has possessed the capacity to create skill and capacities to help potential emergencies and deal with the ones that in the end happen. The Center for Emergencies Operation, [COE], is qualified for create, survey, execute and prepare faculty, volunteers and the group in reference to the national arrangement and administration for crises across the country. The Dominican Civil Defense, are the person on call for the scene of a cataclysmic event or emergency. This is one of the crisis gatherings, in any event, most referred to in the nation as prepared specialists on call for a crisis. The Dominican Civil Defense started their group benefits as a gathering of volunteers to the group by giving correspondence benefits as radio beginner by 1963. Their first authority support to the group was with Hurricane Flora, where they demonstrated how they were successful in giving correspondence across the country under a crisis debacle as a tropical storm. The Dominican Red Cross enabled them to station their focal correspondence inside their middle. By, 1966, the Dominican government ordered the Law 257, which made the Dominican Civil Defense as an official living being to help crises. Along these lines, turning into an official state establishment under the umbrella of the Center of Emergencies Operation, COE. In September 22, 2002, the legislature instituted the Law 147-02 by which the hazard administration, turned into the official crisis administrative Agency responsible for building up the national crisis and correspondence design alongside its controls. As general standards they keep to ensure, arrange, take an interest, show counteractive action and decentralize administrations. Their essential objective is to avoid or decrease loss of lives and limit property harms of regular folks and government from catastrophic events or artificial calamities. The Dominican Civil Defense, is one the creatures under the umbrella of COE, and in addition the Dominican Red Cross, Energy Conservation Department, Fire Department, Police Department, Dominican Port Authority, Health Department, Environment and Natural Resources Department, Dominican Seismological Institute, National Housing Department, among others, have been perceived as a crisis emergency group of experts and experts nearby, national and globally for its work group in the interest of those in require and the group. On account of the Dominican Civil Defense, their labor is made out of 95% of consistent prepared volunteers, an official chief, an officer corps, and departmental supervisors who, as indicated by their scholarly readiness start working for the group and the advantage of the nation. As indicated by Treurniet, Van Buul-Besseling and Wolbers (2012) the group might be characterized as a gathering of individuals living in a similar territory and having a specific attributes in like manner of being a person. Furthermore, accordingly, they will have a place with various gatherings and groups, sharing their comprehension of a genuine dynamic group work, towards each other. By 2014, the Dominican Republic executed without precedent for its history the administrations of 911. As one of the new crisis asset administrations focus, its experts in control wanted to instruct enormously the populace about the utilization and advantages of 911. The correspondence methodology was enormously utilized (TV and radio) amid the accompanying two months preceding the actuation of the 911 framework across the nation. Pearson and Mitroff (1993) communicated that there is a need of teaming up with the group, since it gives a feeling of being part dynamic inside the group. Moreover, they clarified that the group can share their desires, evaluating their necessities and objectives of the individuals who are requiring help. During emergency, the learning of teaming up formally or casually with associations in achieving one objective of assisting someone else turns into a versatile conduct (James and Gilliland, 2013). In the Dominican Republic, Center for Emergency and Communication Operations, [COE] would be comparative in its capacity to what FEMA is in the United States. The Dominican Civil Defense is assigned under the umbrella of the COE. This Center would be part basic of the Crisis Management Team, CMT and the Crisis Management Plan, CMP. COE organizes steady trainings with national and global organizations who are additionally managing crises and emergency keeping in mind the end goal to trade encounters and prepare with new procedures. Today, the Dominican Civil Defense has turned out to be one of the organizations of the Government that has extraordinary compared to other correspondence arranges in the nation after the Armed Forces. They have a correspondence framework in the UHF band or ''ultra-high recurrence" as of late introduced, and an armada framework is national in scope, notwithstanding ordinary telephones. As of now, the Dominican Civil Defense has a radio station, which is the spirit of the establishment in emergency and crises that work 24 hours per day and the 365 days of the year (Dominican Civil Defense, 2014). Emergency Theories. Hypotheses influence a few presumptions to give a clarification of a given circumstance. A few creators, for example, James and Gilliland (2013) clarifies that the Eclectic Crisis Intervention Theory involves a purposeful and deliberate specifically coordinated substantial ideas and techniques to help the casualties from various methodologies. This specific hypothesis starts filling in as an undertaking focused hypothesis, rather than utilizing ideas. A few noteworthy undertakings recognized in this hypothesis are: Distinguish components in all frameworks and to coordinate them into an inside reliable entire giving a more precise behavioral information to be clarified. Think about every single existent hypothesis, techniques, and principles for assessing and controlling clinical information as per the propelled learning of time and place. The need to relate to no particular hypothesis, with a receptive outlook and ceaselessly explore different avenues regarding those details and systems that deliver victories. This specific hypothesis incorporates two inescapable topics. The first of those subject is that individuals and all emergencies are one of a kind and unmistakable, subsequently can apply to anybody and any sort of culture. Besides, all individuals and all emergencies are comparable. Consequently, James and Gilliland (2013) comprehends that these suspicions are viewed as totally unrelated. The mixed approach, as indicated by James and Gilliland (2013) give a chance to various methodologies and speculations, in this manner, it enables the chance of having the capacity to evaluate the casualty's needs keeping in mind the end goal to apply and design the proper strategies customized to the individual. The specialist, then again, will go out on a limb and will have the eagerness to change a way to deal with another procedure regardless of whether the first had work. In any case, the Interpersonal hypothesis fundamentally clarifies that individuals can not support an individual condition of an emergency for long, on the off chance that they truly have confidence in themselves and in others. Having certainty, the individual will wind up self-realized and defeat the emergency (James and Gilliland, 2013). Crandall, Parnell and Spillan (2014) clarified that the basic objective of the emergency administration group, CMT is to prepare for potential emergencies and deal with those emergencies that in the long run happen. Thusly, it will be viewed in three viewpoints, emergency reaction associations and audit their connection between associations. Moral and lawful difficulties. Crandall, Parnell and Spillan (2014) gave a comprehension of the significance of moral and lawful duties and difficulties when managing associations and their social boundaries. The moral culture of the associations the vast majority of time is being imperfect due to the dishonest conduct performed by its workers, and paying little mind to their composed code of morals. For instance, farfetched objectives of associations, may lead workers to doubtful basic leadership. In this manner, workers may feel, that they ought to cause in exploitative conduct to get the objective by undermining hierarchical strategies (Crandall, Parnell and Spillan, 2014). Then again, moral norms are not considered to have legitimate weight just, as per James and Gilliland (2013); clarifies that the Eclectic Crisis Intervention Theory involves a purposeful and efficient specifically coordinated legitimate ideas and methodologies to help the casualties from various methodologies. This specific hypothesis starts filling in as an assignment arranged hypothesis, rather than utilizing ideas. A few noteworthy undertakings recognized in this hypothesis are: Distinguish components in all frameworks and to incorporate them into an inside reliable entire giving a more exact behavioral information to be clarified. Think about every single existent hypothesis, strategies, and principles for assessing and controlling clinical information as indicated by the propelled learning of time and place. The need to relate to no particular hypothesis, with a receptive outlook and persistently explore different avenues regarding those definitions and methodologies that deliver victories. This specific hypothesis coordinates two inescapable topics. The first of those topic is that individuals and all emergencies are interesting and unmistakable, thusly can apply to anybody and any sort of culture. Also, all individuals and all emergencies are comparable. Subsequently, James and Gilliland (2013) comprehends that these suppositions are viewed as fundamentally unrelated. The varied approach, as per James and Gilliland (2013) give a chance to various methodologies and speculations, accordingly, it enables the chance of having the capacity to evaluate the casualty's needs keeping in mind the end goal to apply and design the proper strategies customized to the individual. The advisor, then again, will go out on a limb and will have the readiness to change a way to deal with another strategy regardless of whether the first had work. In any case, the Interpersonal hypothesis generally clarifies that individuals can not support an individual condition of an emergency for long, in the event that they truly trust in themselves and in others. Having certainty, the individual will end up self-realized and defeat the emergency (James and Gilliland, 2013). Crandall, Parnell and Spillan (2014) clarified that the central objective of the emergency administration group, CMT is to prepare for potential emergencies and deal with those emergencies that in the long run happen. In this way, it will be viewed in three perspectives, emergency reaction associations and survey their connection between associations. Moral and legitimate difficulties. >GET ANSWER