MEMORANDUM

To: John Kubler, General Manager

From: Abdullah Ali Production a n d Shipping Department M a n a g e r
Date: October 7, 2015
Subject: Proposals to Improve Departments Performance
Dear Mr. Kubler,
As we approach the New Year wed like to offer you our warmest greetings to you
and your families. After all, businesses are just people, and its nice to know we
serve such great clients. That is why its with extreme regret that I disclose that
your latest order with us is delayed.
To remedy the situation, I have set up intradepartmental investigations to get a
handle on the situation. What I have discovered abnormally large number of
defective supplies & an outdated processing system will be addressed
prospectively below. To improve the departments performance and ensure
successful order fulfillment, I have proposed two solutions:

First, we must consider hiring a new supplier whoguarantees timely

delivery of Tshirts and better quality merchandise. In Textile Images, In c
we havea supplierwho not onlyguarantees these issuesbut also ensures reli
ability. Textile Imagessupplies apparels to 35% of department s t o r e s in
the entire Northeast at an average unit cost of $ 1 0 / u n i t , w h i l s t o u r
current supplier charges $12/unit cost. Over the long-run,
we will pass these savings directly to you. Whats more,
the T-shirts from Textile Images are popular l o c a l l y because of their
creativity, a f f o r d a b l e p r ic e s , and durable q uali ty .
Second,
we
recommend the automation
of
invoicing,
to speed
up the logistic-production system. Automating t h e system increases overall
labor time efficiency and also eliminates backlogging. A study, conducted by
Dr. John Leonard, Cornell University, indicates that automation can reduce
invoice processing time from 20 to 3 days and can also cut down e r r o r s
i n curred during order changes and order processing by 50%.

Hiring a new supplier will require the termination of the current supplier's contract,
which will present some legal challenges as the supplier might seek legal redress.
Also, automating the entire logistic-production system will require costly investment
in a reliable state-of-the-art
automation system.
There are considerable benefits to hiring a new supplier and automating the
processes within the
shipping department. Short-term increases in costs are outweighed by long-term
cost savings in
order processing, increased labor efficiency, better quality merchandise customer
service are ancillary benefits.
Once again, I apologize personally for these errors, which in hindsight could have
been foreseeable. The costs to remedy the situation include expenses for overtime
labor, emergency overnight delivery, and technical labor to recover hard drive data
on the computer system.
All those emergency costs plus potential revenue loss on priority customer accounts
if error happens again is leverage enough for our departments to never let such an
event ever happen again.
That is our personal pledge to you.
We can make significant changes to the department and the company by adopting
these proposals and hope to continue serving you in the future.