Kettering Industries

1585 Words Oct 13th, 2012 7 Pages
Case 12-3: Kettering Industries

Supply Management

Group 1 Immediate Issue:
Victoria Jackson, the supply manager of Kettering Industries Inc, must select the most suitable glass supplier(s) for KII.
Basic Issues:
• Limited storage space
• Finding a supplier willing to stock inventory
• Increasing raw material inventory turns
• Flexibility with suppliers to adjust purchase order quantities
• Implementing the Vendor Certification Program
• Planning for growth of low energy glass windows sales
• Ranking each of the potential suppliers
• Selection of single or multiple sourcing supplier
• Negotiate a flexible long term supplier contract
• Deciding between manufacturer or distributor
• Selecting a supplier
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to have good strategic development. Since these purchases are the main source of their business products, risk will need to be minimal.

The second level is applying the traditional level 2 evaluation criteria of quality, quantity, delivery, price, and service. Quality is a main issue Victoria will need to analyze from each supplier. It is important that the supplier cannot only keep up with today’s demands, but also future demands and technology upgrades for their products. An assessment of the supplier’s management and financial aspects will need to be conducted. This will be a good indication of how effective their supply chain is, especially when dealing with multiple tiers of suppliers. Victoria must take into consideration the price quote she received, relative to how many times they can deliver a week and how long it will take them to receive their shipments.

The third level is for any other current additional criteria that could affect Victoria’s decision: financial consideration, environmental impact, innovation, regulatory compliance, and social and political factors. A major factor Victoria needs to take into consideration is how many suppliers to choose. Kettering Industries Inc. wants to increase their inventory turnover from fourteen times a year to thirty to thirty-five times per year. They are currently using four suppliers to fulfill the requirements needed. With that high of an increase, Victoria may want to

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