Below is a free essay on "Cottrill Case Study" from Anti Essays, your source for free research papers, essays, and term paper examples.
Background:
Judy Stevens the purchasing supervisor of Cottrill Inc. has the pressure to reduce the working capital of the Cotrill Inc, Columbus plant $300,000 annually. Judy is not satisfied with their pager service provider. Judy has been given a proposal from Saxton wireless which provides an opportunity for Judy to increase the efficiency of their critical pager services system and also to reduce the cost on the pager costs. However, the pager system cannot be disrupted nor can be changed overnight because of the high downtime cost of $200,000 per hour.Tallant is the trusted pager service provider which has been providing solutions to Cottrill for the past 12 years on the other hand Saxton is yet is establish a name for itself in the pager service industry. There is a challenge for Judy to choose the better service provider without taking any risk.
Key issues:
1. High downtime cost threat if the Saxton pager system is installed and fails 2. Expensive and bad service by Tallant 3. The older pager devices getting obsolete
Price Break Down:
Tallant:
($16.95+$1.95+$11.9) x20 pagers x12 months + ($60.00x20pagers) =$8,592.00 per year
Saxton:
$13.95x20pagers x12months = $3348.00 per year
Case Analysis:
Price wise Cottrill will save $5244.00 per year if they chose Saxton over Tallant. Cotrill will also have a direct person of contact at Saxton which seems to be a very attractive option. However, the direct contact Natalie Hopkins is a sales representative who might not be much aware of the technical issues which the pager might have and in real time situations Natalie might also need to call or email an expert which might take the same amount of time as the customer service in Tallant.
