Supply: Management and Performance Specifications Essay

Submitted By araceli08
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I. Major Facts: * The test for the spares management module is a disaster and is four months behind schedule; employees cannot use it. * Employees are not able to access relevant data without the hassle the system requires. * The regional and centralized inventory management system is ten months late * Captiva Conglomerate cannot sue S.O. Software, the written contract call for best efforts and was signed by Gerry (Captiva’s President). * The one $1 million called for in the contract has been used and there have been 17 unpriced change orders.

II. Major Problem:
The contract between Captive Conglomerate and S.O. Software was poorly written and does not meet the needs of the company.

III. Possible Solutions/Alternatives: a. Captiva Conglomerate Supply manager Aaron Blumencranz needs to be involved in all contracts written for the company. He needs to go over the contracts with the other department managers and ensure there are performance specifications in the contract to meet the company needs. If the contracts states performance specifications it brings clarity into any legal or liability issues if the supplier does not meet with agreed specifications. Had performance specifications been written in the contract S.O. Software would have assumed responsibility and the quality of their product would have met the needs or the company. b. Gerry Captiva’s president should have called all his department managers into a meeting to go over the contract before signing it. Having all the managers in the room looking at the details of the contract can help catch the minor details that can later on be a problem the company cannot fix. Each department manager can focus on the part of the contract that affects their department and make the changes needed before its finalized.

c. Aaron the company supply manager needs to have more than one supplier for products and services required by the company. It is his responsibility as a supply manger to look over all contracts the company commits to. When limited to one supplier you lose good quality and can pay higher prices. When suppliers know they have competition they will do their best to meet you specifications and prices. This can give the company an advantage and have the suppliers produce better quality and services. IV. Choice Rationale
I would go with choice A and C. As a supply manager it is your responsibility to ensure that all contracts are written to meet the company needs. You are the subject matter expert and know that all
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