SCM CASE Metropolitan Savings and Loan "We will do it for 12% less than what you are paying right now". Robin Blanchard, Purchasing Manager at Savings and Loan (Metropolitan), a large financial institution based in Alberta had agreed to meet with Steven Kelly, a sales representative from Cheques Unlimited Inc. (CUI). A printing supplier from which Metropolitan was currently not buying anything. Kelly's impromptu and unsolicited price quote concerned the printing and mailing of cheques from Brennan Metropolitan, well known for its active promotional efforts to attract customer deposits, provide standard personalized consumer cheques free of charge. Despite the increasing popularity of internet banking, the printing of free cheques and mailing to customers cost Metropolitan $10,000,000.00 in the past year. Robin Blanchard was the Purchasing Manager in charge of all printing for Metropolitan and reported directly to the Vice-President of Procurement. It had been Robin's decision to split the printing and mailing of cheques equally between two suppliers. During the last five years, both suppliers had provide quick and quality service, a vital concern of the bank. Almost all cheques were mailed directly to the consumers' home or business address by the suppliers. Because of the importance of cheque printing, Robin had requested special cost analysis study a year ago, with the cooperation of both suppliers. The conclusion of this study had been that both suppliers were receiving an adequate profit margin, were efficient and cost conscious, and that the price structure was fair. One supplier's contracted had been renewed eight months earlier, and the other supplier's contract was due to expire in four months. Blanchard believed that Steven Kelly was underbidding to gain part of the cheque printing business. This, in turn, would give CUI access to Brennan's customer names and their contact information. Robin suspected that CUI might then try to pursue these customers more actively than the current two suppliers to sell special "Scenic cheques" and other products that customers paid for themselves.PRCH-1012 Procurement SCM STUDENT ASSIGNMENT 1. If you were in the position of Robin Blanchard, what action, if any, would you take regarding Cheques Unlimited Inc.'s bid? 2. What importance is the cheque printing to the bank? 3. How would you do cost analysis on a cheque printing order? 4. How would you evaluate a supplier of cheque printing for this bank? 5. How many suppliers are desirable for cheque printing? 6. What alternatives are open to Robin Blanchard here?