Cottrill Inc

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COTTRILL INC MINI CASE ANALYSIS
About Cottrill
Cottrill is one of the largest corn refining companies that operated in the U.S. and Canada. The plant at Columbus, Ohio has been operating for 20 years with more than 100 employees and it produced supply inputs like high fructose corn syrup, starch and glucose, to varying industries like baked goods, beverages, etc. Judy Stevens is the purchasing supervisor at Cottrill and a current initiative in the department is to reduce the working capital, with a target of $300,000 per year.

Tallant Paging System
Tallant is an international wireless company that offers paging service compatible with the ProductionMessaging software system, a system currently used in Cottrill plants. The software detects any unusual conditions such as heat failure and sends out a warning message to a pager, which notifies the appropriate technicians. About one warning per week is usually reported as a message to a maximum of 20 pagers.

Concern with Tallant Paging Service
1. No direct contact at Tallant at the time of emergency. Only a toll free number can be reached with a long wait on hold until a agent attends the call. One hour of downtime at the Columbus plant costs an estimate of $200,000.
2. Dissatisfied customer service by Tallant that takes more than a month to replace a broken pager.
3. The current pager rented from Tallant was no longer available due to discontinued model. A similar pager costs $150 per pager.

Saxton’s Proposal
Natalie Hopkins, sales representative from Saxton submitted a proposal on switching the services to Saxton from Tallant.
1. Saxton offered simpler fee structure with overall costs lower than Tallant.
2. Saxton promised direct access to Natalie by e-mail or by phone.
3. Saxton agreed to test run the pagers with Cottrill’s system.

Cost Comparison/Savings between Tallant & Saxton…...

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