Case 1-3: Southeastern University
* Southeastern University was one of the largest universities in the state.
* Total enrollment of more than 25000 students and approximately 3500 staff.
* Had 12 faculties at the university, over 20 continuing education diploma and certificate programs and 3 affiliated colleges.
* Its purchasing department was centralized and it has a detailed policy.
* Purchasing director Blake Hyatt, reported to the university’s VP of administration.
* Maintained a list of approximately 1200 approved suppliers, adjusted every 3-5 years.
* Follows a weighted average vendor selection system
* Volume of ...view middle of the document...
First how to deal with the current situation
a. Heather could either keep the automatic folding machine, yet use the quotations to negotiate lower price with the supplier since the other two currents suppliers are offering lower prices for the same equipment.
i. An advantage of this decision is that it will eliminate some of the manual work that 60 people would be doing.
ii. Disadvantage is that other employees might ignore the university’s purchasing policies and they would purchase anything without going through the safe purchasing procedures that they have to be obligated to.
b. Or Heather could return the machines and if necessary negotiate a cancelation penalty and buy another one from the currents suppliers they always deal with at much cheaper price.
iii. Advantages of this decision:
1. Save the university’s money
2. Buy from the current suppliers
3. Eliminate some of the manual work
4. Follow the university’s purchasing policy and rules
5. Ensure secure process through the current suppliers
6. University’s centralized purchasing system would be determined
7. Walter Charbonneau, the manager of the university register’s office may feel offended because the equipment he bought was returned
2. Determine benefit analysis and review cost
c. For example check if the machine will actually help in reducing manual work and therefore reduce university’s expenses.
3. What actions Heather should consider to prevent this situation from happening again?
d. Emphases the...