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ALOK SARASWAT: GMP4005

DASHMAN CASE

Reasons For Non Implementation Of New Purchasing Policy

1. Mr. Post was newly appointed as Vice President (In charge Purchasing) and never met the plant managers in the company. 2. He din have any repo with the managers. 3. The letter was an authoritative in nature in place of advisory. 4. Importance of policy change was not explained in details as what exactly the company will gain out of it. 5. The time of implementation was not sufficient as the bulk requirement was to be fulfilled in three weeks time. Hence non executable command. 6. The letter should have been written to individual manager soliciting their support in implementation. 7. Suggestions should have been invited, if faced any difficulty, in implementation keeping in view the plant operational requirements.

ALOK SARASWAT: GMP4005

DASHMAN CASE

Aug 17 , 2011 Post Vice President (Purchasing) Dashman Company United States

CHANGE IN PROCUREMENT POLICY Dear Mr. Andrews, Greetings of the day,

1. To begin, I would like to stress that as a whole we are satisfied with your performance in timely fulfilling your duties in procurement of required items through well negotiated contracts . However, in the interest of making procurement more efficient and fulfilling the forthcoming bulk requirements, we would like to offer to you the following advice. (a) The contracts are well prepared and negotiated with the suppliers. (b) The contract valuing $10,000 or more may be notified to this office atleast a week in advance from the date of signing the contract. 2. This is being done to coordinate the purchasing requirements of various plants and to ensure that essential items are procured optimally and timely. 3. I hope that you appreciate the need and will cooperate fully with company officials in helping to implement this. Let us join hands and be together as we move forward to our companys success!

Respectfully yours, Post Vice President( In charge Purchasing)

PS: This letter will be dispatched individually to each plant manager duly signed by Mr Post, so that it has a personal touch feeling.

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