Marketing BDD proposal Essay Example | Topics and Well Written Essays - 750 words

Marketing BDD proposal - Essay ExampleAfter which, BDD believes that HMC bequeath be better off as a depict account in the association to better take advantage of its multidivisional efforts. This proposal allow for show how HMC can best utilize its strategic partnership with BDD in response to its on-line(prenominal) financial dilemma.Our company is currently aware that HMC is in a tight financial situation due to the decline in state funding. In this regard, HMC seeks to go down medical management live by $175,000, $100,000 of which is assigned to medical acquisition cost. BDD is also aware that the company sought a supplier which can mayhap slash the prices currently charged to HMC. Thus, Terumo, a Japanese manufacturer offered to charge a price 15% lower than HMC. Further evaluation revealed that Terumos products passed the standard of the hospital and was thus considered. Slashing the medical acquisition cost of 15% will lead to $32,000 cost savings. It is of BDDs intere st to help HMC with its effort to cut operating cost through this proposal.The counter proposal of BDD far outweighs the cost savings to be generated should HMC accept Terumos offer. Initially, BDD offers to cut the HMCs acquisition cost by 10%. At first, it great power seem that Terumo offers higher cost advantage than BDD as the proposed 10% cut will only reflect a $21,333 saving as opposed to $32,000. However, BDD will undermine the first offer by posting more cost savings in the form of honor-added services. It should be noted that BDD wants to convey more value to HMC in the form of add-on services not covered in the deal with Terumo.Through the partnership of BDD and HMC, the latter avails of the basic services offered by the company which include fulfillment accuracy, on time mongery, damage-free goods, efficient determine-inquiry routines, effective sales representation, accurate invoicing, and efficient in-servicing of end users. Acceptance of this proposal will assure HMC of the same services. However, it should be noted that deciding to choose Terumo will risk incurring the associated cost should the company fail to delivery the above services. It is irrefutable that Terumos inability to undertake efficiency will be recorded as other costs. It is estimated that ordering inefficiency alone will HMC incur $2,500 a year. It is assumed that HMC acquire additional $8,500 if Terumo fails to deliver BDDs basic services. This significantly erodes the cost savings initially covered by Terumos $32,000 cost savings. It should also be noted that since Terumo cannot supply all the syringes and needles provided by HMC, this will cost another $7,000 for HMC. Thus, HMC will only be able to save $16,500 if it chooses to accept the proposal of Terumo.As HMC will be converted into a key account instead of a national account, it will also benefit from BDDs multidivisional efforts. The table below summarizes the cost savings of HMC between the two alternatives. As ide from the 10% discount, HMC will also directly benefit from the multidivisional effort of BDD in the form of lower ordering, transportation, warehousing, and disposal cost. In the multidivisional program, HMC will not need to place order every now and then as BDDs information system facilitates automatic ordering. This reduction in operation processes is expected to generate a $2,000 savings