Owl Savings and Loan Melissa West, Procurement Manager at OwI Savings and Loan (Owl), a large financial institution based in British Columbia, has agreed to meet with Rupinder North, a sales representative from Paper Inc. to hear about their products. OwI was not currently buying printing supplies from Paper Inc. however, Melissa managed the printing commodity and wanted to be polite to North's meeting request. North's impromptu and unsolicited price was regarding the printing and mailing of cheques which was being completed by other suppliers. In the meeting North identified that they would print and mail the cheques for 10% less than their current suppliers. Owl is well known for its active promotional efforts to attract customer deposits which included providing standard personalized consumer cheques free of charge. Despite the use of extensive internet banking, printing and mailing cheques was still used by many Ovil customers. The printing of free cheques and mailing to customers cost Ovil $1,000,000 in the past year. For the last five (5) years, the printing and mailing of cheques had been split between two suppliers with both suppliers providing quality work. Last year, West requested a profit breakdown from each supplier and it was determined that the profits were similar and the pricing structure was fair. Eight (8) months ago, Supplier A renewed for three (3) more years. Supplier B's contract will be expiring in four (4) months. West believed that North was underbidding to gain part of the cheque printing business. By becoming a supplier they would gain access to Owl's customer names and their contact information. West suspected that Paper Inc. might then try to pursue these customers more actively than the current two suppliers to sell special items and other products that customers paid for themselves. Case Analysis Questions 1. If you were Purchasing Manager, what actions would you take about Paper Inc's unsolicited pricing? 2. How would you do a cost analysis on a cheque printing order? 3. How vould you evaluate a supplier of cheque printing for this bank? 4. Are the benefits to having multiple suppliers? Explain why or why not? 5. How many suppliers do you suggest Owl have for this service? 6. What do you think Melissa should do to have the best outcome for Owl? Owl Savings and Loan Melissa West, Procurement Manager at OwI Savings and Loan (Owl), a large financial institution based in British Columbia, has agreed to meet with Rupinder North, a sales representative from Paper Inc. to hear about their products. OwI was not currently buying printing supplies from Paper Inc. however, Melissa managed the printing commodity and wanted to be polite to North's meeting request. North's impromptu and unsolicited price was regarding the printing and mailing of cheques which was being completed by other suppliers. In the meeting North identified that they would print and mail the cheques for 10% less than their current suppliers. Owl is well known for its active promotional efforts to attract customer deposits which included providing standard personalized consumer cheques free of charge. Despite the use of extensive internet banking, printing and mailing cheques was still used by many Ovil customers. The printing of free cheques and mailing to customers cost Ovil $1,000,000 in the past year. For the last five (5) years, the printing and mailing of cheques had been split between two suppliers with both suppliers providing quality work. Last year, West requested a profit breakdown from each supplier and it was determined that the profits were similar and the pricing structure was fair. Eight (8) months ago, Supplier A renewed for three (3) more years. Supplier B's contract will be expiring in four (4) months. West believed that North was underbidding to gain part of the cheque printing business. By becoming a supplier they would gain access to Owl's customer names and their contact information. West suspected that Paper Inc. might then try to pursue these customers more actively than the current two suppliers to sell special items and other products that customers paid for themselves. Case Analysis Questions 1. If you were Purchasing Manager, what actions would you take about Paper Inc's unsolicited pricing? 2. How would you do a cost analysis on a cheque printing order? 3. How vould you evaluate a supplier of cheque printing for this bank? 4. Are the benefits to having multiple suppliers? Explain why or why not? 5. How many suppliers do you suggest Owl have for this service? 6. What do you think Melissa should do to have the best outcome for Owl