Conglomerate Essay

Materials manager at Captiva Conglomerate, A1 Carpenter, is attribute a meeting with his Inventory and Spares manager, Sam, his Supply manager, Aaron, iniquity president of Operations, Jason, vice president of Finance, Monica, and director of Information applied science, Jana, to discuss the contract with SOS for an inventory worry and spare parts management placement. Sam, from Inventory and Spares, believes the spare parts clay is not useable for him and his personnel, plus the delivery of the system is four months posterior schedule.The information technology part believes the system works great from the purview of Jim. The inventory management system is 10 months behind schedule and repercussions towards the provider are minimal due to a lenient and poorly written contract, which stated verbiage such as best efforts and whenever possible. The contract with SOS has utilize the entirety of the $1 M allotted, even though the supplier has authorized 17 unpriced change orders. Jason, from Operations, specifies that the smart system ould provide him better support, uptime, and bound off inventory while providing improved support. The question about who wrote the condition for the contracts is brought up and it is pointed out by Aaron, from Supply, that they were drafted by the supplier and initialed by Jana, from Information TechnologyCan Captiva Conglomerate produce better written and produced specifications, solving the trouble of poorly written contracts, by implementing cross functional teams integrated by the pertinent members of all areas of the organization involved in the respective procurance? Best Solution Establish a multi-functional team to include the purchase manager, finance, a legal representative, IT, operations, and inventory & spares to come up with a computer programme and strategy to definitize and clear up the SOS contract requirements.After this is ccomplished, re-engage with SOS to picture the clean clear path for moving forward through a invigorated agreement in order to achieve the deliverables needed by Captiva. straightway following, a standard operating procedure would be created to establish focus on putting together multifunctional teams for any major learning. Advantages Clearing up the requirement documents result help Captive achieve the desired results it was facial expression for through the contract with SOS. This approach give also help establish a firm and final price for the deliverables needed. Involving all epartments in the acquisition process aids in establishing realistic lead times, improved specification writing, and proper financial planning. Creating a standard operating procedure pass on avoid the mistakes of the SOS contract in the future. Multifunctional teams create an environment of efficiency and durability for solving large problems or tackling complex large requirements. Disadvantages special time, resources, and approach will be incurred to clea r the mess Captiva currently has. The contract with SOS will require additional funding in order to eceive the final deliverables. Additional coordination with other departments will require additional effort. There is always bump in trying to enter a new(a) agreement with SOS and exemption could be encountered without a guaranteed result. Alternate Solution Establish a new training on the approach towards new acquisitions and who should be involved in the process. Centralize the procurement process in Captiva, as it seems that the acquisition of the system through SOS was done solely by the Information Technology department and the president.Provide additional funding to the SOS contract in an attempt to terminate it. Advantages New conditions will improve the writing of specifications and statements of work. The centralization of purchasing will produce specialization and better accountability of procurements. The current goal is pacify to receive both deliverables from S OS, while maintaining a good working relationship. Disadvantages cost of completing the contract will continue to increase as no set path to fixing it has been established. Time and cost of establishing a new training program