Problems The problem in this case is that J.W.Sprat has been the sales manager o

Question

Problems

The problem in this case is that J.W.Sprat has been the sales manager of one of the three suppliers and hence he is aware that the process of bidding is just an eye wash and gimmick instead there is a secret agreement conducted every year with one of the companies and every year the company changes. Another issue is that J.Rockwell, III the director of supply management of Ridgefield University is aware of the process that the university adopts each year and if he agrees to the demand of Sprat he will be in trouble because of the corruption and even the reputation of the University will be at stake.

Solutions

The management is aware of the process and there is only three organizations who take part and the order is given to one of them so as there is a fourth entry this time the bidding process should have been changed because the new entry creates a problem. There is another solution which is involving the new entry in the process and make him aware of the process that the university follows so that he is convinced that even he will get his fair chance of business just like the other three.

Explanation / Answer

To All, i need help, i in a supply Chain Mgmt class and I have to find 2 problems and 2 possible solutions to the case of the Rotating Bids: Each year, Ridgefield University solicits bids on its letterhead stationery and envelope requirements. Typically, all three local suppliers respond—and the business is awarded to the low bidder. This year a fourth bid was received from a new firm that had recently been organized by J. W. Sprat, who previously had been the sales manager of one of the three old-line firms. Sprat was not the low bidder. Not long after the bid opening, Sprat appeared in the supply management office to go over the bid results and also to review the history of the bidding over the past several years with Henderson J. Rockwell, III, the director of supply management. Sprat pointed out that the low bidder each year had been one of the “big three.” Because of the obvious rotating pattern, collusion had to be suspected. Further, he claimed that, having been an insider until recently, he knew there was no real competitive bidding. Sprat, therefore, demanded that Rockwell throw out the three bids and place the order with his own firm. Thank-you for your guidance

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