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Timeline

2002

Paul Flynn and woods are conscious of the need for flexo folder
gluer which would combine flexographic printing with the folding
and gluing operations

August
2005

Flynn visited with and considered the companies Bale, Andrews, Rhone
and Kalder each as a possible supplier of a 50 x 110 flexo folder gluer

September
2005

Flynn and woods concluded that hey could justify a CNC 50 x 110 folder
gluer

December
17,2005

Memo to Flynn was issued by quality control supervisor that their existing
folder gluer could breakdown any day which would jeopardise the business

April 2006

The official request for prices has been issued

April 2006

Flynn issued a capital request of $596,800 for a CNC 50x110 flexo


folder gluer

July 2006

A new general division manager was appointed who started to question


the need of a new flexo folder gluer

Late
august
2006

Persuaded the manager that such a machine was needed

Mid
September
206

The division general manager suggested that Flynn considered using one
of the under utilised 38x50 flexo gluer folder they already owned

October
2006

Flynn again persuaded the general manager that 38x50 was not suitable
for the kind of business that he had hoped to do

November
2006

Formal approval to buy the 50x110 is received

December
2006

Flynn is about to make a half a million dollar decision

Purchasing Process

Salesperson Analysis
Rhone salesperson Mr
Dunnell
Lacked professional courtesy to inform before arriving at
the plant
Waited for BCB to conduct their research and wanted to
come in
with a low bid
Could not justify the absence of process monitoring
functions

Kalder Salesperson
a) Good salesperson, made several visits but then died
of a heart
attack
b) The next one was also a good salesperson and made
2-3 visits but was promoted to sales manager
c) The next one was inexperienced and relatively new to
the

Dick Bateman Bale Company


On plant visit, along with presentation offered sizes and rough price
estimation
Offered the Bale machine which had received publicity in trade journals
and conferences
Provided new layout suggestions to give better performance with Bale
machine
Offered already in place installation inspections following Andrews
Company
Less flexible in price negotiation
More flexible in providing many inclusive features in price (eg . Free
installation)

Jim Castrelli Andrews Company


Promoted machines through plant visits and thorough brochures
Offered the new machine , which was under development and had
better features than the new Bale machine and their own existing
machines
Offered invitation to visit the Andrews manufacturing units and
installations of similar machines
Flexible in price negotiations

Purchasing Decision
Based on our evaluation of the case of British Columbia Box
Ltd.,Mr. Paul Flynn would have purchased the Andrews machine
at a price of $ 5,10,000
The reasons for paying a premium of $20,000 are as follows :
Additional 8 features which can be need of industry in the
future
The Andrews machine has a Scotsman vacuum feeder which
was superior in Quality & Safety over the Bales in-house
feeder
The wash up system offered by Andrews was more reliable
In running conditions, Andrews had better performance and
reliability
Jack, the maintenance supervisor was against buying the Bale
machine because he had not so great experience with the old
bale die cutter already in use