2. Purpose
Teavana Coporation is accepting proposals for the
purchase of inventory to satisfy the fiscal year 2015
Golden Monkey, Monkey Picked Oolong, Golden
Dragon, Silver Needle (Teavana Corporation, 2013)
Teavana sets the bar of quality high, “One leaf, One bud”
(Starbucks Newsroom, 2014)
The purpose of this is to provide suppliers an
opportunity to bid for our sale
3. Requirements
Sample of the product
Description of:
1. Flush
2. Climate
3. Fermentation
4. Bud/leaf variation
4. Schedule
Proposals have already been reviewed and consulted by
Director of Tea Development Naoko Tsunoda
Counter proposals were presented from June-September
2014
Final Decisions must be made by October 31st, 2014
6. Potential Suppliers
The price, quantity, variety and reliability variations were
compared in order to conclude the most qualified
candidate
Quantity capabilities are especially important, this supplier
must provide an amount in tons to supply all retail
locations, online warehouses, and Starbucks locations
Offshore suppliers are required, these teas will need to be
from the Yunnan Province China (Yunnan, 2014)
7. Contract Negotiation -
Goods
The seller shall deliver the
described goods to the buyer:
Oolong Tie Guan Yin
Tea 100 tons
Yellow Needle Tea
100 tons
New Bai Hao Silver Needle
White Tea 100 tons
Golden Monkey Black
Tea 100 tons
8. Contract Negotiation - Price
Oolong Tie Guan Yin Tea
100 tons $700,000
Yellow Needle Tea
100 tons $900,000
New Bai Hao Silver Needle
100 tons
$1,000,000
Golden
Monkey Black Tea 100
tons $700,000
9. Benefits
Hunan Monkey Tea Co. has
great customer reviews
They have provided excellent
quality of samples
Their price vs. quality will
meet our needs the best
compared to other options
They have agreed to all
shipment requirements
10. Risks
War
Accident
Environmental Disaster
Industrial Strike
Customs and Compliance Laws
11. Recommendations
Contract outlines any non-performance or force majeure circumstances
There will be adequate monitoring of weather forecasts to select optimal
time frame
Goods are required to be packed in air-tight and light-tight containers in
order to preserve quality and freshness of the product
DDU: Delivery Duty Unpaid (Baily, Crocker, Farmer, Jessop, and Jones,
2008)
Rigorous inspections will take place to ensure all provisions in this contract
are met
12. Supplier Relations
In the event of successful
business transaction Teavana
Corporation is interested in
negotiations to renew
contract in fiscal year 2016
with Hunan Monkey King
Tea Industrial Co. Ltd. With
fifteen percent increase in
shipment weight
13. Bibliography
Alibaba Group. (2014). Hunan Monkey King Tea Industrial Co. Ltd. Retrieved from http://hwtea.en.alibaba.com
Baily, P. Crocker, B. Farmer, D. Jessop, J. Jones, D. (2008). Procurement Principles and Management. Tenth Edition. Pearson. England.
Hktdc.com. (2014). Guizhou Duyun Maojian Tea Co. Ltd. Retrieved from http://www.hktdc.com/manufacturers-suppliers/Guizhou-Duyun-Maojian-
Tea-Co-Ltd/en/1X085FED/
Kunming Nanxiang Tea Co. Ltd. (2011). Yunnan Black Tea. Retrieved from http://yntea.cn/english/list/69.html
Starbucks Newsroom. (2012, December 31). Starbucks Closes Teavana Acquisition. Retrieved from h
ttp://news.starbucks.com/news/starbucks-closes-teavana-acquisition
Starbucks Newsroom. (2014). Renewed Passion for Tea in North American Begins with Teavana. Retrieved from
http://news.starbucks.com/2014annualmeeting/americans-passion-for-tea-starts-with-teavana
Teavana.com. (2014). About Teavana. Retrieved from http://www.teavana.com/about-us
Teavana Corporation. (2013). Teavana Employee Handbook.
Yunnan Litongyuan Trading Co., Ltd. (2014). History of Yunnan Tea. Retrieved from http://www.tuochatea.com/history-of-yunnan-tea.aspx
