what suggestions might you have made in the supply manager’s handlin Supplier C
ID: 361719 • Letter: W
Question
what suggestions might you have made in the supply manager’s handlin Supplier C was extremely angry that he had not been told of the acceptance of new bids He said that he would write a letter to the vice president of material requesting a review of this entire deplorable situation. The supply manager informed supplier C that reasonable follow-up latter's part would have given him any information available to other potential suppliers. Supplier C was not at all satisfied with this answer and again expressed his intention to contact the vice president of material. Supplier F asked why the supply manager had requested bids at all if his "mind had been made up all along." Supplier F said that the order should have gone to the lowest bidder who desired. He said he could meet the specifications and could deliver to any schedule suppi could meet. He demanded the order, and when the supply manager informed supplier F that final selection of the supplier is entirely my province," the supplier raged that he would "spread the word to the trade" and would write the Collier Company president, who should know of such favoritism and incompetence." He further stated that he could provide the even suspected that money had passed hands for this order. The supply manager was upset by these calls and did not enjoy his supper on May 9 I. What suggestions might you have made in the supply manager's handling of this matter? What would you recommend that he do now? To what extent would you concur in the supply manager's belief that suppliers should 2. 3. 4. 5. 6. at least be allowed to recover direct costs? Who do you feel should have received the order? What are the weaknesses inherent in the competitive bidding process? Should this purchase have been negotiated? Discuss. rom a case copyrighed by the Purchasing Agents' Association of Comeciceut Inc. Reproduced by permission.Explanation / Answer
Suggestions:
1) Supply manager did not handle the bidding process well. When there is a date given, that should be finalized to everyone - even to the new bidders.
2) Allowing new bidders to take part in the process is not wrong, but he should not give the extension. Even if he gives the extension, he should have informed of the situation to all the suppliers. But that did not happen.
3) When there is an extension that was given, most of the new bidders made it much lower than the existing prices. Manager should clearly communicate old suppliers of the situation in extending the date and should offer them time to change their bids if they need to change.
4) Supplier C has not been informed of the new bids, this was unfair on the manager's part. He should have duly informed of the extention and participation of the new bids.
5) Lastly, changing the dates to his convenience, and showing partiality is not an ethical act.
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