Executive Summary
Memorandum
From: Jared John Hicza
Procurement Manager
To: Jim Hicza
Re: Selection of Supplier for Presses
My recommendation is to go in for a single source and choose the supplier that we have confidently have had a relationship with, without a problem, for over a decade now.
Major of Action plan:
• Choose JabaKing as the supplier of choice.
• Get an investment loan from Labour Central Credit Union @ 5.25% for next 10 years.
• Visit an operational facility using JabaKing’s presses.
• Procure presses from JabaKing with appropriate people assigned duties and with proper checks in place.
• Commission the presses with assistance from Jabaking.
• Evaluate maintenance for the first three warranty years and then …show more content…
So, there is a lot of confidence as far as the working and familiarity with the presses and its supplier is concerned. By looking at Exhibit I, it is absolutely clear that JabaKing’s presses are the most cost effective option over the course of the next decade.
Cons
If Platinum decides to go in with JabaKing, it loses the opportunity to have worked on presses from a better supplier, who could possibly have provided more efficient option.

2. Sign the deal with Pnutype
Pros
Pnutype uses state of art technology. The technology produces best-in-class results and is environmentally friendly.
Cons
It is very easy to see that Pnutype have zero maintenance costs due to lack of data. It has been producing the presses for just over two years and has very little market presence. It would be a huge risk for Platinum to sign up with a company that is testing the waters yet.

3. Buy presses from JabaKing and Merakuri – Platinum could buy a combination of presses from JabaKing and Merakuri.
Pros
Platinum would get a chance to explore an additional supplier. This would possibly help the company in future growth and expansion plans, possibly into the Asian market.
Cons
Having two different kinds of presses on site would mean that Platinum would have an increased complexity to its business. This may not be a good thing for the planned expansion. It would entail having its production and maintenance personnel