Negotiation Exercise - Sysco - Buyers Info

Negotiation Exercise - Sysco - Buyers Info - Buyers...

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Buyer’s Information - Sysco Gerald Stecklen, a buyer for Sysco, is responsible for developing a negotiating plan and strategy for the purchase of a component (called New Prod) for a newly designed product. After evaluating the quotations submitted by potential suppliers, he has decided to pursue purchase negotiations with Technutronics. New Prod was designed and developed by Sysco engineers for a product currently under development. Prototypes of the component were produced by a small specialized firm without production volume capacity. Gerald knew the high tech industry had between five and eight potentially qualified suppliers who were familiar with the complex manufacturing process required to produce New Prod. Supplier capacity was available since the industry was just recovering from a period of underutilization. Seven suppliers received a request for quotation. The RFQ included a 12 month delivery schedule for 200,000 units plus a possible follow-on order for up to 200,000 units. The quotes also included payment terms and shipping (F.O.B. point) information (Exhibit 1B) Five of the seven suppliers receiving RFQ’s responded. (Exhibit 2B). Technutronics had the lowest quoted price at $5.90 per unit. Tyler Manufacturing was very close except for a high unit
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Negotiation Exercise - Sysco - Buyers Info - Buyers...

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