MEMORADIUM

Date: October 9, 2015

To: John Kubler
From: Carlos Cruz, Management
Subject: Preventing farther setbacks
As you may remember, we have recently encountered major setbacks due to our
partnership with our supplier. I recognize the importance you place upon punctuality
so I have taken the opportunity to seek a new partnership that will not improve our
customer service, but the overall smoothness of our operations in the workplace. I
have found a new supplier that is not only more reliable, but that will also aid us in
earning some money, helping us garner more profit with our current clients.
However, to make this possible I have analyzed and tested a new policy with new
products that will likewise help garner profit, but also aid us in preventing a
catastrophe similar to the one we experienced recently.
The new company which I have found is Textile Images Inc., a non-union garment
group. This company is company that does not allow unions to protest, refusing to
go on strike instead of working. Our previous partners whos employees went on
strike caused our company to lose significant amounts of money. Below I provide a
projection of the monthly cost we face with our current partners:
Current Cost: Service (Cost) Total
2,000 Shirts
$8,000
Other supplies
$2,000
Labor Cost per order
$250.00
Total
$10,250
In order to take full advantage of our resources, I have considered alternatives that
we can implement to improve our workplace and the overall future satisfaction of
our customers. As I stated before the new company is Textile Images Inc.
Transitioning partnerships will increase our labor cost slightly, as we are currently
paying a low rate of $250. However I have been conducting surveys with clients
about their overall satisfaction with our products and they are fairly positive, but
there is room for improvement. With a mew implementation of policy we will have a
slight increase in labor cost, but we will be saving money on our products that is
produced with better materials. I have contacted Textile Images to inquire
projections for our current cost and I believe you will be satisfied with the results.
Projected Cost: Future Partnership
2,000 Shirts (Price for first 3 months, long-term)
$5,000; 6,500
Other Supplies
$1,000
Labor Cost per order
$300
Total
$6,300; $7,800
Because we would be entering a new partnership, Textile Images promises a $1,500
discount for our first three months. The cost of labor increases, but the workers are
not allowed to go on strike, so our company will not face adversary in that regard in
the future. This will help us improve the customer service that we pride ourselves in.
Products that we will be receiving will be of better quality which will be appreciated

by customers whom have had a gripe with some of our previous customers. Not
only will we be saving over $2,000 monthly be switching our policy will also help
improve our relationship with our current customers, but will allow new doors to
open with future partnerships.
Please call me at Ext. 205 or at my personal cell phone (323) 276-1051 if you have
any farther questions. I believe this will be a great opportunity for our company. If
we agree to a partnership with Textile Images before December 1 st they agree to
give us the $1,500 extension for 5 months. Fast action will help us begin a new
partnership that can bring us more success in the near future.