Question You and Paul are on your way to Toronto Factory S1 – DemmyWrite (2023)

Question You and Paul are on your way to Toronto Factory Supply. You go to…You and Paul are on your way to Toronto Factory Supply. You go to the back of the production facility and there is the van. You are surprised by what you see a 13-year-old, 12-passenger commercial van converted to a 2-passenger van. It looked pretty rough: rusted and dented. As you and Paul are driving to Toronto Factory Supplies, the brakes squeaked and the vehicle was not driving straight. When you arrive at the suppliers’ you noticed the tires on the company van were almost bald. The Toronto Factory Supplies facility was surprising large; the external grounds were well maintained. As you walked into the building, it was clear this was a very organized business. Paul was greeted by Joe Gust, who is the Sales Manager for Toronto Factory Supplies. Paul went with the suppliers’ warehouse worker to observe the gear motor being loaded into the van, so you and Joe have a chance to talk alone. Joe was curious why we still pick up our own parts when they provide a Supply Management Outsourcing solution that is a 100% vendor managed service, which is guaranteed to save the company money. Joe ran through a list of benefits: We go beyond the typical 3PL solution, we are a full Supply Management Outsourcing solution Every time you generate a PO it costs you approx. $200, which would no longer be necessary with our system since we are onsite We would set up a parts cage (at no expense to the Best Auto Parts Company) with a secure entrance at your facility and we would manage it ourselves. The cage would remain on our property and we would supply the personnel to manage the cage and ordering system for $30,000/year Our typical cost reduction for all of your MRO purchases as experienced by most of our customers is 7% to 13% We would provide one invoice per month with a detailed report on usage for your auditors We would take care of everything: delivery requirements, reverse logistics, and all obsolescence and overstock issues Your millwright is the most expensive delivery driver on the planet considering his hourly rate, guessing $40/hour. “I see Paul here so much I mistake him for one of our guys. He is here usually 3 or 4 times a week”. Our transport vehicles are maintained to the highest standards. Joe advises that if we seriously consider the offer he would be happy to meet with our management/implementation team members (CFT) to provide any and all additional information required. “Toronto Factory Supply is a very transparent supplier and we embrace mutually beneficial relationships”. When you get back Susan is anxious to hear how the trip went. She was surprised to hear about the condition of the van, although she had never been in it. Susan was most interested in the offer made by the supplier; supply management outsourcing or third party logistics/MRO suppliers have not been considered in the past. Susan thinks the timing is right for implementing some vendor managed inventory systems for non-critical items and has asked you to start working on this project. Assignment Instructions Assignment instruction 1. Summarize key facts of the case-Part 2 too Complete the RFI-Request for Information Template. Fill in all the blanks. The RFI can vary a bit depending on application but should be completed with professional formatting and letter head (on each page) and include but not limited to: a. Complete Contact information on the template i. Who should they send the completed RFI to ii. Who should they contact if they have any questions about the RFI b. anticipated timeframes for evaluation and processes. IE. When do you want a response? c. Add a section to the RFI that outlines how the supplier will respond. Should it be written hard copy? Email, fax. Be specific regarding response method, IE. Hard copy or soft copy d. Define business needs. Expand on your expectations of the first two business needs: Consistency of Supply and must be suitable for the application. i. Add three additional business needs per your understanding of the industry and the case. e. Complete the estimated MRO expenditure amount. f. Define the cost per hour for downtime. Add this to the liability section. 3. Consider what other sections or information you would add to this RFI. Describe two sections you would add, and explain why you think they are important. Add these sections to your RFI. Report Level 4 Exemplary Level 3 Proficient Level 2 Basic LevelRequest for Information-IssueDate:__________________Sentby:_____________________DueDate:___________________IntroductionThis Request for Information is an invitation to a select group of companies to submit information that will be used at a later date for the selection of supplier(s) that canprovide supplymanagement outsourcing of our current and future MRO needs including all 3PL services.Services will be required to provide a seamless transition with flawless implementation.Also include any other information not outlined below that may not be directly within the scope of this RFI but which you believe is relevant such as alternative products, systems or suggestions.Respondents who are selected for further consideration will be:Visited by our supplier selection cross functional teamRequired to make an on-site presentation to our management teamDemonstrate your SCL philosophies and systemsCost reduction proposalAll questions and inquiries regarding this RFI should be directed to: