Case: Reducing Supplier Evaluation Cycle Time Essay

667 Words Mar 7th, 2015 3 Pages
Summary:

Emily Burns, a commodity team leader for a consumer food products company, just returned from a seminar that addressed current sourcing and supply chain topics. But Emily was surprised when the speaker presented the results of a study that showed concept-to-customer new product development cycle times were getting shorter by 50 percent every five years. While in some industries this rate of change was less severe, in other industries the rate of change was even more rapid for example refer table below.

History of Automotive industry to reduce time to design and produce new car:

Year when occur the strategy to reduce time | Time cycle to design and produce new car | 1990 | 48 months= 4yrs | Mid 1990 | 36 months=3 yrs
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2. Identify when supplier evaluation and selection decisions typically occur.

Supplier evaluation and selection decisions typically occur 1st: when customer or buyer recognize the need for supplier selection(for example on case the requirement for company is reduce development time for new product therefore the company need to evaluate a supplier that comply with percent requirement of the customer for reduce development time)..

3. What is forcing companies to reduce the time it takes to develop new products?

The market pressure that rapidly changing industries cause the life cycle of product be shorten therefore the companies is forcing to reduce the development time of new product to launches a new product for immediately ramp up sales force capacity to acquire customers as quickly as possible.

4. Identify a process (with the steps clearly defined) that a company can follow when evaluating, selecting, and negotiating supply agreements with suppliers.

Supplier selection and evaluation steps:
1st: recognize the needs for supplier selection
2nd: identify key sourcing requirement
3er: determine sourcing strategy
4th: identify potential supply sources
5th: limit suppliers in selection pool
6th: determine method of supplier evaluation and selection
7th: Select supplier and reach agreement.

5. Discuss ways to reduce the time it takes to evaluate,