Brennan Bank Case and Donovan Valley Purchasing Consortium Case

Effective Management of Purchasing Departments
Student Name
Institution Affiliation
Brennan Bank Case
According to the facts of the case, Rachell Bonnell the purchasing manager at Brennan Bank received a printing offer from Scott Kyle, a sales representative from P. Jolon Inc. The unsolicited and impromptu price quotation from Scott Kyle would see Jolon not only render printing but mailing services to Brennan Bank’s customers and for 10% less of the amount they were paying their current suppliers (Johnson, 2020). As such, Bonnell was left with the tough task of making the decision concerning Jolon’s printing offer. There are various factors that Bonnell had to put into consideration in that regard.
To begin with, the offer from Jolon was significantly underquoted. With firms primarily engaged in business with the aim of making profits or returns from their investments, it is definite that Jolon was hoping to benefit in some way or another. The most probable conclusion was that through the price cut, Jolon was targeting to gain part of the lucrative check printing business. Once they were given the contract, Jolon would gain access to the names and contact information of Brennan customers who they would then pursue scenic checks among other products. As such, while Brennan bank would benefit in the short run, it would end up losing a significant portion of their customers to Jolon. Check printing is very important to banks such as Brennan because it not only provides them with professional image but also assists them in attracting more consumers. It also jeopardized the security and privacy of their customers. Secondly, with such an offer there are chances that Jolon would provide substandard services. There is the probability that Jolon won’t be inclined on providing quality products since the company does not benefit as greatly as it possibly could have. Thirdly, Bonnell should also consider splitting the check printing business with other suppliers. The initiative would cushion the bank from risks pertaining to non-delivery of quality service from Jolon. It would also ensure the provision of quick service which is paramount in the banking industry.
Based on the above factors, the best decision that Bonnell should make on behalf of Brennan bank is to split the printing and mailing service between Jolon and another supplier particularly one that had previously been contracted by the bank. The move would ensure the bank benefits from reduced costs from the $10 million it had incurred in the previous year. Brennan bank would also have a backup plan in the instance Jolon fails to deliver as promised. The initiative would also see Brennan bank share a portion of its customer base between the two suppliers and as such, mitigate on the invasion of privacy.
Donovan Valley Purchasing Consortium Case
As Bob Hamilton, what is your evaluation of the proposal to establish a centralized purchasing consortium?
The above ...