Trade payable decision making by

kelly_tan_shi_hui2 — 2024-05-21 05:06:19 UTC

Write 3 reasons and 3 explanations for the choice of supplier you have been assigned to.
1 post will contain 1 reason and 1 explanation. (There should be 3 posts per group)
Use of ChatGPT

Rong has a shorter response time for after-sales service

ariechua — 2024-05-21 08:00:30 UTC

By choosing Rong for the after-sales service, Shrek Seven would benefit from a quicker response time for technician visits, which helps to reduce operational downtime.

A faster response time can minimize downtime, which is crucial for a printing business that relies on continuous operation to meet deadlines and maintain customer satisfaction.

Cost of printer (ChatGPT)

alfred_lim_zong_bao1 — 2024-05-21 08:02:12 UTC

Considering the cost of the printer alone, Shrek Seven should purchase from TaiTan for the following reasons:

1. Lower Initial Cost: The TaiTan printer costs $15,000, which is $700 less than the Rong printer, which costs $15,700.

2. Cash Discount: TaiTan offers a 3% cash discount if payment is made within 10 days of delivery, which is higher than the 2% cash discount offered by Rong for payment within 15 days. This higher discount can result in further savings if Shrek Seven can take advantage of it.

Therefore, purely from a cost perspective, TaiTan provides a more economical option both in terms of the base price and potential discounts.

Rong offers a longer warranty period

ng_kim_yen_alice — 2024-05-21 08:02:23 UTC

Rong offers a longer warranty period compared to TaiTan. With Rong, Shrek Seven gets a one-for-one exchange within 3 months if the technician can't resolve the issue.

This means that if there are any significant technical problems within the first three months, Shrek Seven can get a replacement printer at no additional cost.

TaiTan provides free installation on top of free delivery service (hence, offers more cost savings compared to Rong)

teng_mei_juan_eileen_a — 2024-05-21 08:03:08 UTC

Considering delivery and installation fees alone, Shrek Seven should purchase from TaiTan because TaiTan offers both free delivery and free installation of the industrial printer.

In contrast, Rong only offers free delivery, and Shrek Seven would need to handle the installation themselves, which could incur additional costs, either in terms of money if they need to hire a professional or time and effort if they attempt to do it themselves.

Therefore, TaiTan's offer of free delivery and installation provides a more convenient and potentially cost-saving option regarding these specific aspects.

After-sales service

alfred_lim_zong_bao1 — 2024-05-21 08:07:36 UTC

Taitan provide servicing for a longer period of time of 3 years as compared to Rong which provide only the first year of purchase. Taitan will be able to have more savings for first 3 years of the printer as the servicing fee will be free of charged

Rong is a local supplier

ariechua — 2024-05-21 08:08:18 UTC

By choosing Rong based on the operation base, Shrek Seven can benefit from faster and more reliable support, easier and more effective communication, a better understanding of the local market needs, and the potential for direct interactions. These factors can lead to a more responsive and supportive relationship, minimizing disruptions and enhancing the overall operational efficiency of Shrek Seven's printing business.