Procurement Request

Congratulations to myself! :)

I guess it’s the hangat-hangat-tahi-ayam spirit that keeps me disciplined enough to deposit something into my memory bank again, today. Apparently the credit should also go to Mr ST that brought me laughter of the day. After much hesitation (and consensus from Mr ST), I’ve finally decided to post this up -- our entire email conversations today during office hour! It’s rather personal to be posted but it’s worth to be remembered! Haha!


*********************** Here it goes! ************************
From: ST
Sent: Tuesday, December 23, 2008 5:33 PM
To: BC
Subject: Request on purchase

Dear BC,

With regards to the subject above, I would like to seek approval on purchase of a memory card for PS2 for the purpose of playing extra games. A memory card cost RM25. Please see below for the justification on the intent to purchase a PS2 memory card.

With the purchase of the memory card, in the short term period, we would not need to modify our wii and buy new games which might cost 10 times of the indicative amount of a PS2 memory card. Looking at the financial capabilities of us currently, it will be more justify to buy the memory card in the short term and wait till we are more financially sound then only we will modify the Wii..

Please approve on the purchase of the said above.

Hope to receive good news from you

Best Regards
ST

************************************************************
From: BC
Sent: Tuesday, December 23, 2008 5:36 PM
To: ST
Subject: RE: Request on purchase

Dear Mr ST,

Regret to inform you that the proposed purchase is not financially viable.

The justification wasn’t sound enough as you might overlook the economy of scale of the procurement.
Please also do look into the depreciation value and utilization rate of the below mentioned asset.

It sounds like an one-off usage and it doesn’t bring any tangible nor intangible benefit in the long run.

Please resubmit your proposal with more solid supporting for further consideration please.

Thank you

************************************************************
From: ST
Sent: Tuesday, December 23, 2008 5:56 PM
To: BC
Subject: RE: Request on purchase

Dear BC,

May I know what are the concerns on the economy of scale? This will be a once off item and there's nth to do with economy of scale.

In terms of depreciation value and utilization rate. We are looking at a depreciation time horizon of 6 months. That would mean that it is the cost of depreciation @ RM4.20 per month. To justify the magnitude of RM4.20 a month, the equilevent is as below:

1) 1 pair of monthly contact lense (without the option of astimatism) is equilevent of 13 memory cards
2) a 10 in 1 Phillip hair styling (with a depreciation horizon of 6 months) is equilevent of 5.8 memory cards (not taking into consideratino of the utilization of the hair styling product)

Regarding the concern of tangible or intangible benefits in the long run, it does provide both tangible and intangible benefits. Tangible benefits being in the short term, we would not need to spend on the modification of Product W which will definately result in negative cashflow. As for the intangible benefits, it provides stress relieve solutions at a very very comfortable cost.

With all the facts given above, we don't see why it is not feasible to purchase memory card for product P.

Please do reconsider on the proposal.

Best Regards

ST

************************************************************
From: BC
Sent: Tuesday, December 23, 2008 6:03 PM
To: ST
Subject: RE: Request on purchase

Dear ST,

Economy of scale means this product P will probably benefit one party and hence the utilization rate will be relatively low.

Product W would eventually benefit many, many parties which brings a real long run benefit. Besides, Product W would better enhance the company’s CSR and PR as product W is currently more in demand in the market.

The bottom-line is, the Director is NOT happy with the procurement.
If you insist to pursue further on this proposal, please share with us a healthy financial cash flow for the next 6 months for our further deliberation.

Thank you & Rgds

********************** End **********************

Background Story:

1. The "Director" HAD to reject the proposal (intentionally) since she doesn't play PS2 anymore nowadays. Haha!
2. Nintendo Wii is more fun to share with friends and hence “enhance” the PR (Public Relations) and CSR (Corporate Social Responsibility).
3. Philips 10 in 1 Hairstyling product was an impulsive purchase despite strong discouragement from Mr ST. To date, it has only been utilized once - on the day it was purchased!

Conclusions:

1. We enjoyed the "debate", haha!
2. We went to get the memory card after work and to his disappointment, he quoted the wrong price! Haha!
3. So we went back home empty handed.
4. Sometimes things are just destined – “ If it’s yours, it will be yours”
   

Solution:

In order to please the poor man, this is what I’ve "tried my best" to get for him… (hehe~)