Case Study: The supplier selection process is a critical activity within the operations of a company. Once the outsourcing decision is taken, a process aimed at analyzing and choosing the appropriate suppliers begins.
Suppose that you are a Procurement Analyst in a large company. You have been asked to create a proposal to the Chief Procurement Officer identifying the best supplier to outsource, for a 3-year period, a complex part of your companys value chain. Your company operates in a mature market where the qualifying and winning factors are quality and time to customer respectively.
Based on the information included in the table, address the following questions:
- What supplier would you select?
- What is your rationale for your election?
- What supplier would you select if your companys factors changed to price and quality? Would your election change?
SupplierPriceQualityDeliveryOthers
A 90 90 95 Overseas supplier. (transport lead time 3 weeks)
B 105 100 100Supplier facing financial issues
C85 85 95Proximity supplier. (transport lead time 3 hours)
*Figures are expressed in % as follows:
- Price: price quoted by supplier vs. outsourcing company target price
- Quality: parts accepted vs. parts delivered
- Delivery: parts delivered on time vs. parts delivered
Provide a 2-3 page paper proposal, as the Procurement Analyst, that outlines the issues of the case, states your choice of supplier and provides a rationale for your choice.
Before you begin writing, please see the s and review the assessment criteria below.
Papers will be assessed on the following criteria:
- Description of the Case and Identification/Coverage of Major Issues
- Depth and Scope of Analysis
- Solutions and Strategies
- Writing Clarity and Quality
- APA formatting
