Supplier Selection

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.

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

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.

The Bargaining Power of Suppliers (Moderate): Most of the industry’s products are sourced and manufactured by a network of third parties. The supplier group is diluted compared to the industry; KMD alone has over 45 suppliers. There is credible threat of suppliers adopting forward integration resulting in loss of major suppliers and emergence of new competitors for the industry. Highly effective and specialised products will pose high supplier switching costs for industry firms.

Dual sourcing is used very often as quality control problems, giving the buyer additional power to product attributes that are difficult to specify in a contract. In addition, dual sourcing is used less often for systems procured under multiyear contracts, suggesting that competition and contractual completeness may be

In this assignment I will be writing a formal report that will explain a typical procurement process, I will outline a variety of methods of supplier reimbursement and contract relationships; I will also outline the pros and cons of each contract type. As well as this, I will explain a typical supplier selection process through the use of Carters 10 C’s and a typical selection process model.

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

People: The emergence of the triple bottom line has led to companies becoming more aware of how their decisions affect not only employees and customers but those within the community they operate in. To achieve this in an ever changing global world a company needs to create policies and guidelines on how to select suppliers and evaluate performance.

Global product sourcing can help in lowering the cost of purchasing the required material from other countries where it is available on low price. Mass customization can also be considered to meet the demand of periodic orders in compliance with constraints of supply chain.

Outsourcing is when a company purchases products or services from an outside supplier rather than performing the same work within its own facilities, in order to cut costs. In other words, outsourcing is an organization's contractual relationship with a specialized outside service provider for work traditionally done internally by that organization. The decision to outsource is a major strategic one for most companies because it involves weighing the potential cost saving against the consequences of a loss in control over the product or service. Some common examples of outsourcing include manufacturing of components, computer programming services, tax compliance and other accounting functions, as well as payroll and other

Global business environment has become more unstable, supplier negotiations have taken important new role on helping improve corporate competitiveness. The goal of most supplier negotiations today is no longer just to get the lowest price. It is also to find new and innovative ways to meet a wide variety of business challenges, often by tapping into the knowledge and expertise of the supplier community and a good relationship.

The bargaining power of suppliers is medium. Since corporates conditions vary, whether the power of suppliers is strong should be determined accordingly. But to survive in the online retailing industry, keeping a close relationship with the suppliers is imperative. Many of the multi-national companies in the industry is depending on limited numbers of suppliers that are concentrated in production, differentiated in products, and not heavily relied on a single industry, which give them great bargaining power and can better facilitate the corporations’ success. Small companies may not have established such strong alliance with its vendors.

Most companies lack the ability to quickly contact each outsourced supplier, vendor or licencee in their supply chain. Many companies have done alot of work in the area of managing global supply chains better. A web based Supplier Ethical Management (SEM) platform has been developed which allows companies to maintain contact information for most or all of its suppliers and communicate critical information to them on a regular basis. Using an SEM platform is probably

This case addresses many issues that affect insourcing/outsourcing decisions. A complex and important topic facing businesses today is whether to produce a component, assembly, or service internally (insourcing), or whether to purchase that same component, assembly, or service from an external supplier (outsourcing).

There are a number of suppliers for every sort of product and in everywhere of the world. The only option is to choose the right supplier and then to set the procedures with him to get the process of development going. Before doing so there should be preparation to understand utterly the purpose of the project and how it is going to be executed. RFP, which is the acronym of request for proposal will determine whether both of the stakeholders - the one giving the contract and the one going to get it - are clear regarding the rules and the regulations.