Determine the evaluation criteria that you will use to select the preferred vendor(s) (e.g., low price, best value, etc.) [Are there different evaluation criteria for different business units? Why?];…
The key tasks associated with procurement management planning are determining what items need to be procured, finding the suppliers that could satisfy the requirements, bidding process, and the approval process. These tasks must be completed step by step in the workplace. “The key benefit of this process is that it determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it” (Project Management Institute, 2013, p. 1). When dealing with a similar project, a firm can use historical data to compare and determine what needs to be procured for the project. The potential sellers must be properly identified. This can be easy for firms who have already established a good relationship with their previous suppliers and the projects they deal with are almost similar. Then it would be easier to undergo the bidding and supplier selection process. The bidder who can satisfy the needs of the project will be chosen and the signing of contract follows. An…
2. This case provided the data necessary to perform a cursory supplier financial analysis. In reality, cross-functional sourcing teams must often obtain this data during their assessment of potential suppliers. Discuss possible sources of supplier financial information. What may impact a purchaser's ability to obtain supplier financial data?…
The global sourcing arrangement between Code C and Eastern Waves is extremely complicated from a quantitative and qualitative viewpoint. The total cost of sourcing is perhaps the most important variable. For instance, the associated qualitative risk profiles were (1) the impact of national interest and (2) the political conditions in Malaysia. The quantitative costs were (1) direct labor costs, (2) materials shortages and (3) indirect governmental costs. Moreover, the general uncertainty associated with Malaysian governmental business practices makes this sourcing deal a risky proposition.…
Dealing with a sole source options are much more limited since it is very difficult to change suppliers unless you are willing to change your requirements. But single source procurement, the options are much less restricted, since it is less difficult to change supplier.…
Describe the supplier relationship and the effects on the supply chain. As part of this consider the following:…
1. According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT: a. Personal relationships b. Individualized objectives c. Mutual benefits and needs d. Performance metrics 2. The combination of the purchase price of a good and additional costs incurred before or after product delivery can be referred to as: a. Total cost of acquisition b. Total cost of ownership c. Purchase requisition cost d. Total procurement cost 3. Benefits of implementing an effective supplier certification program include all or the following EXCEPT: a. Building long-term relationships b. Reducing time spent on incoming inspections c. Increasing supplier base d. Recognizing excellence 4. A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.30) Responsiveness (0.20) Delivery (0.20) Cost (0.20) Technology (0.10) Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(80), Delivery(80), Cost(90), Technology(90). What is their total score? a. 87.0 b. 85.5 c. 86.0 d. 84.0 5. SRM software should be capable of: a. Automating transactional processes b. Making information flow between partners more visible c. Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally d. All of these…
At MPC's point of view, we audit and estimate potential suppliers. Based on a complete analysis, including financial risk analysis, total cost analysis and supplier evaluation and selection analysis, we will propose recommended selection, discussion of the type of contract to pursue, key negotiation issues. After sourcing risk analysis, we will also offer risk management plan and a timeline to implement the sourcing strategy.…
Executive Summary. Global sourcing executives face more challenges than ever, and the global sourcing environment will only grow more complex. The firms that survive the next century will do so because they make key investments in building the next generation of strategic sourcing capabilities. Strategic Sourcing 2.0 is about automating networks and analysis that is more rigorous. Global sourcing executives can increase their effectiveness by automating many aspects of the sourcing lifecycle and by relying on a core group of analysts who focus on creating the information reporting and analysis necessary for “enterprise awareness.” Presented below are the lifecycle and capabilities for automating and analysis. Source Discovery – Web crawling and crowdsourcing provide affordable, tailored information to constantly update the picture of risks, supplier status, new entrants and competitive intelligence. Source Evaluation – Multi‐cultural expert networks and a supplier evaluation methodology can improve the likelihood of successful supplier relationships. Source Network Management – Multi‐enterprise sourcing networks, a deliberate sensor network, and a command center can provide near real‐time insight on all aspects of the sourcing network; hosted auction services can provide dynamic pricing for source acquisitions and asset disposal. Sourcing Analytics – Near real‐time insight into subordinate sourcing organizations and programs can only be achieved with a custom reporting capability. In general, a data mart may also be required to store, manipulate and manage the information necessary for sourcing analytics. Sourcing Resilience – The capabilities and information to manage multiple issues like the acceptable levels of redundancy in the network, acceptable security, insight into business, network and supplier risks, rapid insight…
While companies have an array of vendors to choose from, there are five important factors that every company should consider to facilitate a successful relationship.…
What suggestions do you have for Sabina about working with suppliers and how would you address the sourcing issue from the Chinese supplier based on Lean principles?…
We are submitting our report on “Procurement and sourcing: contribution to the supply chain management”. As per your advice, the report includes brief understanding of the subject in light to what is being presented by us. I am grateful for your guidance and supervision without which this report could have not been completed.…
account factors such as the cost over the life of the good or service, and…
function. Highlight the critical areas of purchasing such as the tendering process, outsourcing and insourcing decisions and supplier selection among other areas (30 mks)…
Correct Answer quality & no. of suppliers , logistics, raw material , trends and rate of change of technology…