A supplier partnering agreement Essay
Introduction The supplier partnering agreement at the University of Las Vegas case reflects the initiative of the Nevada Office Supply Company (NOSC) to become the sole supplier of office goods, not only to the University, but also to all state institutions involved in education. NOSC already is a major supplier to these institutions with approximately 50% of the business, and has provided competitive prices, good quality and service in the 15 years the company has been present in the industry. NOSC wants to go beyond and take the full 100% of the business by offering the University a series of incentives in the form of discounts and rebates. NOSC doesn’t want any …show more content…
As stated previously, NOSC’s intention with this negotiation is to monopolize the growing office supply business the University of Las Vegas and other educational institutions demand. By asking Mr. Ashby to exclude the other suppliers from the negotiating table, NOSC is negating the possibility for others to help decide what’s in the best interest of the University and the education system when it comes to ordering office supplies. If this agreement goes through, it is possible that some small suppliers end up closing their business due to this unfair act. This can be an example where ethical sourcing, which attempts to take into account the public consequences of organizational buying, is put aside. A transparent organized bidding process should be the option to make sure that the best possible agreement can be reached without sacrificing good quality and competitive prices.
3. How should Mr. Ashby analyze the proposal?
Mr. Ashby needs to decline the proposal regardless of how attractive and profitable it might look. The right approach is to call on NOSC and invite them to participate in a real bidding competition, where the other 7 suppliers have the chance to expose their ideas on cost reduction and business incentives. After having heard the others and still NOSC’s offer is the most attractive, at this point it is in the best interest of the University to choose to do business with NOSC. In my opinion, The