XYZ Corporation Dr. Booth My

XYZ Corporation

Dr. Booth

My apologies for my company delivering a late order of widgets which cost your company $3M dollars, and I have devised a revised pricing program to fully compensate you for this loss over your next six months of purchases. The per widget cost had been $6 per unit on the one million units per eighteen months you have been ordering on a consistent basis. From today through August 6, 2008 my company will lower your per widget price to $3 per unit to compensate you for the damages of your lost revenue. I have spoken with my company's Board of Directors and we collectively feel that the value of having you as a customer warrants this price being given to you. We have been partners for 11 years, and deeply regret the impact of the late shipment on your operations and want to assist you in regaining the lost revenues.

If you would sir allow me to explain how the late widget order happened in the first place. Our current quoting system is, as you know, quite complex, and given the complexity of the widget customization, we've had to significantly revamp our widget ordering process. We're going to completely redesign our existing quoting processes based on the late shipment to your company and re-design our entire approach to quoting as a result of this error. Under the current scenario it takes approximately 25 days to complete a response to the customization requirement for XYZ Corporation's widgets quotes. The following graphic shows the progression of how your quote travels through our company today:

have asked our Vice Presidents of Sales, Marketing and Engineering to create a project team to take 50% or more of the time it takes our company to respond to your quotes. Presented below is the location of those areas of the processes in our quoting system that can deliver a major improvement in performance.

Based on the work of the project team and our internal tests, I also want to offer you the opportunity to track the status of your quotes and orders inside our manufacturing plants through a web-enabled interface we've specifically created for your procurement and supply chain managers. Our project team has already created the Web-based application your departments can access through any Web browser. Our team is confident that we can trim weeks off the time required to respond to your custom quotes, and also alleviate permanently any late shipments by giving your procurement and supply chain teams constant access to our current production schedules.