Continental's Supplier Rating System

All their suppliers range from small farming cooperatives to multinational corporations . They consider factors such as capacity, quality and cost when selecting companies to buy from. In addition, seek only to work with suppliers that can consistently meet standards and specifications and

The Performance Measurement is a way to either measure or give a understandable value to what has been done compared to what was supposed to be done. It applies to all aspects in the working environment, such as procedures, critical activities and processes. In other words, first you set pre-defined goals and give away tasks and responsibilities to other workers, then at the deadline you can compare the achieved results to what the original goal was at the beginning. It is also useful to evaluate not only the final result, but even all the actions taken to get that particular results and the way the actions have been taken as well.

Performance cycles can be improved through the use of the 25 percent and 15 percent suppliers. The new suppliers would need to be reliable and punctual. Small deviations create large problems therefore, a higher premium for consistency would be well worth the extra expense in the long term.

Supply Chain Management: An International Journal, Volume 7, Number 5, 2002, pp. 271 – 282;

Measuring performance means when a business will measure the quality of the activities that are passing and the quality of the services provided to the customers by employees. It involves creating a simple, but effective, system for determining whether organizations meet objectives. It’s also a process of collecting and reporting information regarding the performance of an individual, group or organizations. It can

Chase, R. B., & Jacobs, F. R. (2011). Operations and Supply Chain Management, 13e. Boston: McGraw-Hill Irwin.

The Treadway Tire Company has almost 9,000 employees in North America. Treadway Tire is one of the major suppliers of tires to the original equipment manufacturers (OEM) and replacement tire markets. The company sells under the brands Treadway Primo, Treadway Performance, and also manufactures private brands. Treadway Tire Company has eight manufacturing plants in North America. The Lima plant in Ohio is one of them and has a serious problem of high turnover (almost 50%) of foremen. This SWOT analysis is mainly focused on the Lima plant in Ohio.

Performance metrics are tools that businesses can use to determine the efficiency of production. There are various types of performance metrics that a company can use; however in evaluating the performance of Riordan’s electric fan supply chains the two most relevant metrics would be the productivity metric and the efficiency metric. “Productivity is the ratio of output to input” (Jacobs & Chase, 2011 pg. 117). This metric is useful to Riordan because the company can determine the ratio of the dollar value of the output and dividing it by the cost of the inputs. This ratio helps the company to determine if the they are spending more in labor and parts then they are generating in sales. For an organization in which generating sales is the primary goal, this is an important ratio to know. The productivity ratio determines whether or not the company is generating as much of a profit as it should or if too much money is being spent in order to make money.

Taguchi's strengths are a familiarity with JIT and the automatic equipment used at Acacia.  Its weaknesses include being an international supplier, potential currency or communication problems, having no history as a JIT supplier with Acacia, and charging a price 10 percent higher than Monitor's.

Working closely with Bradley Stonefield, the consulting team has been able to gather the important data and information necessary to construct a viable and effective performance measurement system for his company. According to a recent interview, the following information was presented:

The new business process and integration tool also offered real-time visibility into its extensive manufacturing process, including tracking inventory, handling billing and monitoring vendor performance for on-time delivery and other measures. The system was fast, reduced errors and improved efficiency.

Russell, R. S., & Taylor III, B. W. (2014). Operations and Supply Chain Management, 8th edition. Hoboken, New Jersey: John Wiley & Sons, Inc.

In order to compare different suppliers, we must take a look at their income statements and balance sheets. These financial statements allow us to assess the company’s risks for continuing operations and its ability to provide us the required parts. In order to do a risk assessment, we need to measure company’s profitability and solvency. This would help us determine whether the company is in good condition to supply us in long term and also in harder economic difficulties or would it go bankrupt and leave us with a great loss.

Research has been conducted on the topic of Performance Management. The imperativeness of inculcating a robust formal performance management system seems to lack refined research within the Motor Retail industry specifically in Barloworld Motor Retail and the impact perfpormance management will have on the workforce should it be effective. This, however needs to be further explored in this research by suggesting a structured intergrated system and using the results as an engagement tool to ensure that all employees are included in the process as well as fully comprehend the value performance management and a formal integrated system will add.

Diversified supplier partnership- strong relationship with supplier such as domestic airlines including LCCs,international airlines,local transports,hotels