Date: May 16, 2016

To: Mr. Kubler, CEO

From: John Velazquez, Manager for Global Fabric Solutions, LLC
Subject: New proposal for improvements
The companys goal is excellent customer satisfaction and maximize cost savings. Last week we did
not make enough total revenue, and expensed an emergency cost of $9,000. Last months late
shipping crisis consisted of; shortage of supplies, lack of present employers, garment vendors went
on a strike, misplacement of backup paper orders for the customers, computer system contained a
virus, and Fedex behind on its deliveries. I am proposing new alternative changes that researched to
avoid repeated mistakes. New procedures that, with additional budget funds, incorporate costs for a
new T-shirt supplier, shipping carrier, staff employees, and secure data storage service in order to
ensure our company maintains successful customer satisfaction. My new proposal requests for an
additional $5000 monthly fund, but will prevent large emergency costs from happening again and
increases annual revenue by $60,000.
The emergency expense was beneficial to recover from delays. However, these costs jeopardize
the companys profits and run the risk of losing each customer account of $100,000 with delayed
shipments.
Emergency
Temporary
Tehcnician
Expedited
Replacement
Total Cost:
Costs
workers
Fee
shipping
Rush
$9,000
Manufacturin
g
My new proposal requests for an additional $5000 monthly fund, but will prevent large emergency
costs from happening again.
New
New Staff
New Secure
New TNew
Total
Proposal Members
Cloud
shirt
Freight
Cost:
Costs:
Data Storage supplier Carrier
$5,000
The four new proposals include:
New T-shirt supplier: better quality fabric, less costs, non-union factory
(no striking workers, less labor costs, cheaper
prices)
New Secure Cloud Data storage: secure records to protect from malware
attacks
New Staff members: higher labor costs (2 F time, 2 P time)
New Freight Carrier: slightly lower costs, more reliability during peak
holidays
Our new monthly expenditure comes out to $5,000 instead of $9,000 with an
annual increase of only $60,000.
Comparing the two tables, a $5,000 increase is small compared to the risk of
losing multiple 100K clientele accounts. In addition, Textile images Inc. is

offering free delivery and a 15% discount on all T-shirts and the online cloud storage
company will give you a free trial period to use their service.
To clarify proposals, I would like to schedule a meeting and go over the new budget requests forms
for signing.