Supply Management (OPER1503)

Case Study 2 - Purchasing Ethics

Lisa Jennings thought that at long last her company assurance technologies was about to win a major contract from seal good instruments. Seal good a maker of precision measuring instrument was sourcing a large contract for component as subassemblies. The contract that assurance technologies was bidding was worth at least $2.5 million annually a significant amount given assurances annual sales of $30 million. Her team had spent hundreds of hours preparing the quotation about meeting this requirement in quality cost delivery part standardization and simplification. In fact, Lisa had never been more confident about a quote meeting the demanding requirements of a potential customer.

Troy Smyrna, the buyer at seal good instruments responsible for awarding this contract Lisa and asked to meet with her at his office to discuss the specifics of the contract. When she arrived the soon realized that the conversation was not going exactly as she had expected. Try and from informed prepared a solid quotation for the contract. However, when he visited assurances facility earlier on a pre qualifying visit he was disturbed to see a significant amount of competitors product being used by insurance. Troy explained his uneasiness with releasing part plans and designs to accompany that clearly was involved with the competitor. When Lisa asked, what assurance could do to minimize his uneasiness try replied that he would be more comfortable if assurance no longer used the competitor's equipment and use seal goods equipment instead. Lisa responded that this would mean replacing several $100,000 worth of equipment. Unfazed Troy simply asked her whether she wanted the business. Lisa responded that she needed some time to think and that she would get back to Troy in a day or so.

Questions

1. The buyer at Sealgood Instruments, Troy Smyrna, is practicing a certain type of unethical behavior. Why is it considered unethical?
2. What should Lisa do in this situation?
3. How can this situation be improved upon for the future?

In eassy form like intro body (answers) and conclusion