England supplying ambulances to national health service

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Reference no: EM132154886

SBAR Ltd is an independent ambulance support company, they work across the south of England supplying ambulances to the National Health Service. when it is struggling with capacity problems.

The company employs 65 full time staff, with the majority of the staff spread between their operations team and their fleet team.In 2016 SBAR Ltd signed a 5-year deal with TA Maintenance Services Ltd to support the maintenance of their ambulances. This was agreed between the Managing Director of TA and the Fleet Manager at SBAR, whilst also approved by the Finance Director and kept within budget. However senior managers at SBAR have growing concerns about the contract, as they have found that it isn’t suitable for the needs of the operations team, who were not consulted until after the contract was signed.The Fleet manager needs to have a contract with an external company, as it takes away considerable workload from his team and has significantly reduced the numberof complaints they receive from the rest of the business, while still working within the budget agreed with the Finance Director.

Currently, the operations team have the following issues with the contract and the Service Level Agreement (SLA).

Ambulances currently need to be delivered to TA for maintenance and they would prefer that vehicles are picked up and returned.

SBAR ideally need a 24-hour turnaround time, but the SLA states that TA have up to 3 weeks

TA are using generic parts (not original parts) to repair vehicles, which is voiding warranties on some vehicles.

These issues have resulted in the Operations Manager working with a local garage and charging the costs to the company credit card to avoid using TA. These costs have started appearing on the financial statements and the Managing Director has started to ask questions about the contract and if it is really suitable for what they need. If they were to cancel the contact there would be penalties that, although the company could absorb financial impact, it should be a last resort as it will restrict their growth for the next year.

You have been contacted by the Managing Director of SBAR Ltd and he has you to produce a document that he can distribute to the relevant team managers covering the following topics.

The background of the situation and what the current trends are in the industry.

What is the impact of the current agreement with TA Maintenance Services not meeting the expectations of SBAR?

How would you recommend that SBAR Ltd find a solution to this problem?

What are the advantages and disadvantages of this problem?

How your recommendation should be explained to the employees in the company and what backlash should be expected?

Reference no: EM132154886

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