Supplier Selection Case Study

Recognized as one of the leading computer manufacturers, Dell uses an astonishing supply chain through pull-to-order procurement and just-in-time inventory management. Their strategy is highly efficient and drives costs to a minimum while allowing for minimal lead times and production times of under 4 hours for each order as their suppliers maintain levels of inventory based on forecasts within Dell warehouses near Dell assembly

Acquisition is a process that requires teamwork with each individual and/or group working together to ensure that the customer is provided the greatest overall benefit in response to their requirements (best value). Acquisition planning should start once the need for supplies or services are identified. Integrated Product Teams (IPT) should be used when needed to help develop the acquisition strategy. The use of these teams will reduce false starts and delays resulting from unclear scopes of work. In the following paragraphs the steps in the acquisition process will be defined and discussed.

A supplier can get the raw materials for manufacture of the goods as also the finished product/imports

In the case “Metalcraft Supplier Scorecard”, the author uses an example of a decision-making problem regarding to which supplier should Metalcraft choose to lead to the topic of the Metalcraft supplier scorecard. Metalcraft, as a component designer and manufacturer, supplies a few largest automobile manufacturers with vehicle parts all over the world. As one of the tier 1 suppliers, Metalcraft offers and ships finished parts and components using in the automobile production process to automakers.

Second, always make sure there is an alternative source. As I mentioned before, this is much easier with single source procurement (but not sole source), since other similar suppliers could be able to supply similar products with more or less that same quality as the previous suppliers.

{Build the Supply Base: supplier selection1. supplier evaluation- find potential suppliers, supplier certification (qualification, education, certificationISO 9000,14000). 2. Supplier development- integrate supplier in system, quality require, product specs, schedule/delivery, procurement polices, training, engineer/production help, information transfer procedures. 3. Negotiation- significant element, strategies: Cost based price model (open books to supplier, based on time and materials) Market based price model (based on published, auction, index prices: commodities) Competitive bidding (most common, no longterm relationship, request for rfq). 4. Contracting- share risks, benefits, incentives. Centralized purchasing, E procurement (online catalogs/exchanges, online auctions).} Logistics MGT- obtain efficient operations through integration of all material acquisition, movement, and storage activities. Frequent for outsourcing, allow competitive advantage from reduce costs and improve customer service. 1.Shipping systems: truck(flexible, moves majority manufactured goods) rail( large loads, containers) Airfreight( fast/flexible light loads, expensive) water( used for bulky low value cargo, oldest way of transportation) Pipelines( transport oil, gas,

The three criteria that would apply to most projects include payment terms, on-time delivery performance, and reputation. It is important for a company to use the reputable supplier and the one who it has partnered in past projects. These criteria are essential in the project success because these could

In the early 1980’s, the small town of Clarkston, Georgia could be best described as a neighborly and old fashioned southern town It was a place where kids played baseball, everybody knew their neighbors, and English was the spoken language However, things changed by the mid-1980’s, when Clarkstonbecame a large resettlement location for refugees from mainly the middle east. The town was appealing because of affordable housing and easily accessible jobs in Atlanta. By 2000, the United States Census showed that one third of Clarkston’s resident were foreign born, thus making it a perfect description of Steven Vertovec’s newly coined term of supplier diversity. Communities struggling with their newly diverse environment use Clarkston as an example

When you’re choosing a supplier, you’re not just choosing a particular product, but the people who push that product as well. Issues or late shipments are inevitable, but when those things happen, you want to feel confident that you’re working with professionals that will solve things quickly.

Various important approaches like engineering driven approaches and selection of supplier processes lead to the number of suppliers at premium prices. It reduces cost of

It is quite challenging to discuss about procurement management without stating the importance of its strategies. There are four main basic procurement strategies that serve different functions within a procurement management. To begin with, a “Partnership” strategy focuses mainly on constructing mutual commitment in long term relationship with suppliers. While a “Secure Supply” strategy aims to secure short and long term supply while reducing risk from suppliers. In addition, a “Category Management and E-Procurement solutions” serves as a tool to reduce logistic complexity, improve operational efficiency, and attempts to reduce the number of suppliers. Lastly, a “Competive Bidding” strategy emphasizes on obtaining the “Best Deal” for short term transactions with suppliers.(van weele) Each of these four strategies involves a unique purchasing methodology, which implies that the complexity is embedded in an individual strategic implication. Therefore, it requires different tools to accomplish the specific strategical characteristics. A business entity may need to support and execute procurement decisions with other strategic apparatus with analytical methods, including market analysis, uncertainty analysis, price forecasting, supplier relationship and along with others.(Harvard)

Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.

Selecting qualified suppliers can be a tough job in today's marketplace. There are many organizations that make themselves sound appealing who do not produce the agreed upon terms of service. It can be difficult to find a new supplier and it can be a very time consuming task. Having a good database of resources can make life a lot easier with this part of the job. It also helps to plan visits to a few top potential suppliers to see how they operate internally. It is also useful to request product samples to examine and test. Not only that, it is important to check references. This can shed light on things that the company would not disclose such as poor customer service or frequent delayed deliveries. For a successful and long-ranging collaboration we demand from our suppliers are market-driven Terms, quality, cost transparency,

The industry boundaries have to be properly identified in order for Staples to analyze its competitive forces that are in the office supply industry environment to pinpoint its opportunities and threats (Hill, et al., 2015, p. 47).

A supplier group have even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the suppliers, their product is essential to the industry, the supplier differs costs, and forward integration potential of the supplier group exists. Labor supply can also influence the position of the suppliers. These factors are generally out of the control of the industry or company but strategy can alter the power of