Unsolicited Businesss Proposal

Unsolicited Businesss Proposal

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To Billie White,

President,

Associated Students Organization (ASO).

Dear Sir,

RE: Purchasing and Supplying of Steel Footlockers

Introduction

Many on-campus students are faced with a multiplicity of challenges that include murder, forceful sex or sexual harassment, minor drinking, car theft and burglary just to a name a few. Of the listed, burglary has been the most dominant challenge. Researchers on the challenge provide statistics that reveal the rising trends in cases of reported burglary at on-campuses all over the world. For example, during the period spanning 1993-2004, the incremental figure for reported burglary cases stood at an alarming high of 9% in the USA on-campus colleges (Terrel et. al. 2000). The alarming increase has placed managements of such institutions under great pressure to narrow down on and implement methods that are to address these challenges. The pressure has been directed to them in reference to their leadership and administrative roles at these institutions. From country to country, continent to continent, you will find legislations that require the managements to ensure the safety of the students’ belongings. In addressing these challenges, they are to come up with both the precautionary measures as well as safety measures. The two measures should ensure safety of both the students’ lives as well as their belongings. Terrel et. al. (2007) in their social article entitled creating and maintaining safe colleges unanimously agree that college and university administrators, as central campus leaders, need to examine measures taken on their campuses to protect the students and the entire campus community.

However, it should be noted that despite the alarming increases in the cases of burglary and theft at on-campuses, managements are encouraged to maintain positive attitudes as they initiate the two measures to overcome the challenges. This is so because every problem has its own solution; and as such what are only needed are an analysis and an understanding of the challenge at hand, followed by the selection and implementation of its corrective measures.

Background

Karl Institute of Technology is a technology oriented college whose students in trying to answer to their course demands have invested heavily in purchasing electronic valuables. Some of these valuables include laptops, projectors, photocopiers, printers, cell phones, i-phones, i-touch cameras just to list a few.

Identification of the problem

Due to their great investments, the students at the institution have not been an exception to the many security challenges (especially burglary) that continue to face other on-campus colleges all over the world. In entering their rooms, one is forced to sympathize with the high risks of theft and burglary cases which these valuables are exposed to.

In joining the campus for my postgraduate studies, I am forced to carry out a survey on the security status of these valuables. My inquiries are carried out to 20 students in the five dormitories that house a total population of 500.

From my findings, it is a fact that my prejudgments on safety of these items are confirmed when some students confess to having lost some of their items in burglary related instances in recent months.

Purpose

It is from my findings above that I propose to the leaders of the student body -Associated Students Organization (ASO), be awarded the contract of purchasing and supplying the steel footlockers at the institution.

The steel footlockers will be ideal safety resources for the college administrators who are solely indebted in ensuring the safety of the students as well as their belongings.

Benefits of the footlockers

My selection of these safety devices was mainly guided by their ability to offer the primary functions of securing personal valuables against all risks of theft and fires.

In addition to the primary functions, the following benefits are likely to be derived from their usages.

The footlockers are likely to last long if proper care is taken on them. This means that the students of each succeeding academic year are likely to re-use them. This will save the management a lot of costs.

The footlockers can perform the functions of an ordinary table. These may include using them as reading, food or card tables.

The tables are relatively affordable if purchased in bulk.

Being light and well shaped, they are likely to be set in the rooms with relative ease.

In addition, the students are to use them to occupy some the large spaces available in the rooms.

It is also worthy to note that the footlockers can be customized by including inside coverings in their two apartments. This will provide comfortable environments for the items stored in them hence keeping them free from scratches. Their colorings and the designs can be customized by the manufacturers to suit the wishes of their users who in this case represent the students.

The footlockers will therefore possess the two most important characteristics that any student will look for; that is quality and dependability.

Proposed plan

The proposed plan has been carefully reviewed basing on the statistical findings gotten from my survey in the student rooms.

The total population for on-campus students at the institution stands at a total of 5000. Each room at the institution is shared by 2 students; meaning that the total number of rooms at the institution stands at 2500. Of these, a meager 500 students in 250 rooms have made their gone ahead and made their own arrangements of purchasing various safes to cater for the security of their belongings. This leaves a total of 2250 rooms still being vulnerable to the challenges of burglary and theft.

In line with the statics above, I therefore propose 1 footlocker to be provided in each room. This means that the two students in each room will share the 2 compartment footlocker. Each student will be expected to “own” one compartment of the footlocker. The proposed total number of footlockers to be supplied at the institution therefore stands at 2250.

Schedule of activities,

With the approval of the ASO, the following table summarizes the schedule of activities that are going to be involved in the whole process.

Activity Timeframe Cumulative times (in months)

Placing orders with the manufacturer-Footlocker Manufacturing Company. 2-4 days 1

Making deposit to the manufacturer 1-2 days 1

Manufacturing of the first 1000 batch 2-3 months 4

(Delivering of the first batch)

Manufacturing of the second 1000 batch (2 weeks)

2-3 months 7

(Delivering of the second batch)

Manufacturing of the last 250 footlockers (2 weeks)

20-25 days 7

(Delivering of the last 250) (2 weeks) 7

From the table above, the management should be informed that the total timeframe for the project is approximately 7 months. The activities enclosed in brackets represent those activities which will be undertaken simultaneously with other major activities. For instance, delivering of the first batch will be done in the same timeframe as manufacturing of the second batch. This multi-tasking is going to shorten on the total time that would have been required to implement the project.

. The schedule is as proposed in order to provide the following benefits to the manufacturer, supplier, the client and the shipping company;

The manufacturer (Footlocker Manufacturer Ltd) will have sufficient time to handle the bulk orders.

To allow KIT management sufficient time to service the costs to be incurred in the relatively large order.

To enable the shipping company (Track Shipment Company, TSC) enough time to adequately plan in advance on the shipment mode to be adopted. For instance, the footlockers to be shipped can be evenly distributed by incorporating them across the existing shipment plans. This will help in reducing the transport costs. The costs will be shared between the various clients whose shipment costs will be shared across the board.

The supplier (Orient Supplies Ltd) will have enough time to co-ordinate all the activities to be involved in the implementation of the whole project.

The association is informed that the schedule above can be reviewed to suit the wishes of all the parties to be involved in this project.

Staffing

The association is informed that though various parties have been mentioned above, the contract will bound only two major parties namely (Orient Supplies Ltd-which is owned and managed by me and the Associated Students Organization, ASO( who is the client in this case). Other parties (namely Track Shipment and Footlocker Manufacturers) will remain dormant and as such no direct communications should be made by them to the client, ASO. Their linkage in the processes to be involved will only occur through Orient Suppliers (who is acting as the link middleman).

I hope that ASO team will find this appealing to them since it will reduce the many challenges that would have faced the parties especially when there is a communication between the many parties. The costs to be involved will come down as a result.

In allocating myself the middleman role, I have been guided by the vast knowledge and great experience I possess in the purchasing and supplies management fields. Having finished my degree course in these fields 5 years ago, I joined Nile Breweries Ltd as a Procurement Officer. It is during my time that the institution implementation the procurement of fire-proof safes. This was done to counter the increased losses to the vital documents at the processing firm.

Budget

The following table displays the total budget for the whole project.

Item Quantity(ies) Estimated Costs (in $)

Footlocker 2250 506,250 (2250 * 225)

Shipment 2250 225,000 (2250 * 100)

Total 731, 250

The above budget has been prepared based on the competitive prices available on the current market. If the proposal is approved and the contract awarded within a period of 5 months from the time of the delivery of this proposal, the figures stated will stand to be effected. However, the prices stand to be reviewed slightly if the timeframe exceeds the stipulated period. This is because the effects of economic recession continue to cause fluctuation in world economies. The adjustments made can either increase or decrease the current budget.

Whichever the case, I would like to confirm to ASO that the prices offered will remain a competitive package.

Payment schedule

A deposit of 20% of the total cost is to be paid at the award of the tender. This amounts to $ 146,250. The remaining $ 585000 is to be cleared in two stages. The first stage will be after the delivery of the first batch. At this point, half of the remainder ( $292500) is scheduled to be paid. The remaining half ($ 292500) should be paid on the delivery of the last 250 footlockers.

Payment mode

All payments are to be paid through a banker’s cheque whose details will be provided at a later stage.

Authorization

I am totally convinced, Mr. Billie White, that my choice of the footlockers as the safes for the students will offer the required solution to the ever increasing challenges of burglary at your campus. Orient Suppliers Ltd will supply the 2250 footlockers by October 30th this year if you give it the go ahead to implement this project. The go ahead can be authorized by you in two ways; by signing the duplicated and enclosed copy of this letter and submitting the initial deposit of 20% as stipulated in the payment plan. The rates in this letter are only valid for five months (March 10th to August 9th) upon which their review can be effected based on the prevailing market trends.

I look forward to working with you.

Sincrely,

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Managing Director,

Orient Supplies Ltd.

References

Guffey, M.E. & Loewy, E. Essentials of Business Communication. Mason, USA: Cengage Learning, 2009

Jerlando F. L. Jackson, Melvin C. Terrell Creating and Maintaining Safe College Campuses: A Sourcebook For Evaluating and Enhancing Safety Programs. Virginia: Stylus Publishing, LLC, 2007.

Assumptions made

Karl Institute of Technology-name of the college.

Orient Supplies Ltd –name of the supplier/middleman.

Track Shipment Company-name of the company to be awarded the shipment contract

5000-The total number of students enrolled in the on-campus programme