Heartland Essay

1550 Words Feb 18th, 2014 7 Pages
Paper # 1

Introduction to SCM-honors

Lei Zhang (Alice)

Case # 10: Heartland & Company
1. I think there are at least two advantages of basing a supplier’s overall evaluation on its lowest performance. First of all, it is a simple way to exclude poorly performed suppliers. Since Heartland & Company could have a list of thousands of potential suppliers that need to be evaluated, this method could save a lot of time for managers to pick up a handful of qualified suppliers. Moreover, according to “Liebig’s law of the minimum”, the growth is usually controlled by the scarcest resource, just like the water available in a barrel is determined by the shortest stave. That is, the overall quality of one product can be hit by the
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Before establishing such stable relationships, it is necessary for the Heartland & Company to evaluate potential suppliers comprehensively.

2. The weights for the five dimensions that the Heartland & Company focuses on should not be equal. As indicated in the beginning of the case document, the Supply Management Manager Walter A. Walsh and one of his buyers, Olivia Newcomb point out the company’s priorities which are cost reductions and long-term relationship. Also, the competitive advantage of cost reductions is usually based on excellent cost management, while the long-term relationships are supposed to build upon efficient and effective communication, which is an important part of wavelength. That is, the Heartland & Company is expected to put more weights on cost management and wavelength than those on other factors. Following that, improvements on technical support could also reduce costs, specifically assembly costs. Hence, it is reasonable to put more weights on technical support than those on the rest two elements, which are delivery and quality. According to the level of priority the Heartland & Company designates to each factor, I come up with the following weights: Cost management 30%, wavelength 30%, technical support 20%, delivery 10%, and quality 10%.

3.
Partner = 5; Key = 4; Approved = 3; Conditional = 2;
The overall score = sum of the product of weight and rating for each key dimension. Key
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