Product details

A manufacturer of construction parts spends $150,000 annually on courier services. When the courier threatens to stop shipments because the required $10,000 deposit has not been maintained, one of the company''s owners decided to switch couriers. The new courier is late in delivering a vital component, nearly causing a production shutdown. The materials manager wants to recommend that the company return to the previous courier service. He needs to consider that the owner is a principled person, who favored the new courier. As well, the company has had layoffs and pay cuts. Although he had been a long-term employee and is satisfied with his work, the manager needs to determine whether he should approach the issue at the next management meeting or simply allow the situation to be the sole responsibility of the owner.