Butler Systems Case Study
Student’s Name
BUS/612
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Butler Systems Case Study
Students were asked to read and provide a brief summary for the Butler Systems Case Study in the class textbook. Assuming the role of the Vice President of Operations, an evaluation of the battery shortage problem will be provided, a proposal of potential actions that should be taken to mitigate the situation will be clarified with recommendations. A summary of the organization’s role in qualifying and selecting potential suppliers will be given with reasons for the recommendations (Benton, 2014).
Summary Butler Systems Case Study
The Butler Systems case study in the text describes the contractual relationship between the Butler Systems and SDX. Butler System’s VP of Operations discovered that instead of maintaining inventory to accommodate a 90-days operation, the company has been operating with only a 20-day inventory for operations; demand has increased for the HD-5 battery by competing international companies. This situation is a deal-breaker for the two companies, who are voiding the contract because the original agreement has been broken along with delivery time and pricing discrepancies (Butler, 2014).
Potential Actions and Solutions
Butler Systems has done a great job maintaining good relationships with the company’s suppliers. According to Benton (2014), maintaining supplier relationship is critical to the success of the organization. There are many factors involved with preserving good relationships with suppliers is maintaining product quality, timely delivery, flexibility, and customer service. Butler has been able to provide these factors. When more than one supplier is involved, formal bidding and negotiation processes take place where promises are made. When a contract is signed, the supplier has a duty to fulfill