After reviewing the data sheet you sent that detailed relevant information on three alternative companies that our company could choose from as a distribution company, I have hereby selected Company A which satisfied all the requirements and aptly fits our company needs based on cost, customer service and reliability.
In the cost consideration criteria obviously, Company C is most cost efficient at an average cost of 145 per product shipped; as compared to 200 for Company B and 170 for Company A. If our company would give strong preference for considering low costs per product shipped, then, Company C is most cost efficient; and seconded by Company A. Over the three year period, however, one could analyze that both Companies A and C have exhibited declining costs per product shipped and it would therefore be presumed that given all external factors constant, our company could still avail of lower costs from either Company C or Company A. Company B’s costs remained constant at 200 over the three-year period under review.
In terms of customer service, Company C also generated the highest rating over the three-year period at 5.4 rating, compared to 5.2 for Company B and 4.8 for Company A. However, Company A generated the most prestigious awards in terms of customer service, as it had consistently won the NAFM Manufacturer of the Year for 15 times overall and similar to Company C in terms of consumer reports quality award, which are indications of its sustained high quality across furniture manufacturers through a considerable length of time. Likewise, Company A offers more styles and varieties for their sofa and chairs (24) which are a factor for customer service, as compared to only 17 from Company C.
Finally, under reliability, Company A evidently generated highest rating through more criteria which confirms their consistency in reliability: % on time rate, % return rate (similar with Company C), length of existence and lower rate of defective products from the products shipped over the three-year period. Likewise, although Company B could apparently produce more products for our company at 30%, the percent on time rate and defective rate of shipped products for Company B were the highest from the three companies.
In this regard, one hereby recommends Company A as the distribution company that could potentially meet our needs using the criteria on cost, customer service and reliability.
Very truly yours,
