Assignment Sheet for Case Study:
Negotiation - Porto
This case is written by the authors of your textbook, Purchasing and Supply Chain Management, but may have been edited for our use in this course.
This is a TEAM assignment. Read and discuss this mini-case and answer the 5 questions at the end of the case. In this manner, you will develop a negotiation plan for the buyer. The very best way to approach this team case is to work on all aspects (each question) of this case together. If you simply divide up the questions and assemble individual answers, you will not have the best learning experience.
Only ONE member should post the case analysis for the team. Your analysis must be posted to SAFE ASSIGNMENT™ on our Blackboard™ site
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Computer manufacturers compete fiercely for contracts based on meeting the technology, quality, and price requirements of customers. Profit margins and return-on-investment targets are almost always under pressure. Dell Computer recently saw its operating margins slip to a slim 7%.
Most computer manufacturers have programs designed to improve quality and reduce the costs associated with their products. One strategy that many producers use is to contract only with high-quality suppliers and to develop longer-term buyer-supplier relationships. One major computer company, Porto, also initiated a program requesting suppliers to continually improve productivity, which should lead to cost reductions.
The objective of the program was to reduce purchase costs over the foreseeable future. Porto also expects its suppliers to contribute cost-saving ideas whenever possible.
The high-technology industry features high fixed costs due to large investments in plant and equipment. These companies also commit large expenditures to research and development.
Porto currently has a requirement for an electronic component termed “New Prod”, which is part of a recently designed product. The estimated volume requirement of New Prod is 200,000 units with additional follow-on orders likely. For the New Prod component, Porto felt there were five to eight highly competitive suppliers capable of producing the item. These suppliers
Supply Chain Management: An International Journal, Volume 7, Number 5, 2002, pp. 271 – 282;
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
Preston, S. (2012, September 13). Seven Steps to Negotiation Success. Retrieved September 1, 2014, from http://www.supplymanagement.com/analysis/features/2012/seven-steps-to-negotiation-success
Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay
A Customized Textbook, Supply Chain Management SCHM2301, ISBN9781308037400 Copies are on reserve in the library
Although competitive bidding will continue to be used, especially in the public sector, to ascertain market prices for non-strategic items, many of these items will be outsourced to third-party buyers or consortia to conduct the bidding. Moreover, organizations will continue to purchase most non-strategic products and services under master contracts, some of which will be negotiated by consortia that have leveraged and buying expertise. A trend is expanding for the continued use of third-party purchasing by primarily private sector firms pursuing all forms of competitive advantage possibilities.
Managed logistics, supply chain, and integrated logistics functions within a leading provider of services to the federal government. Supervised, trained, and evaluated team of over 20. Assisted Program Manager in quality assurance and operations leadership to meet all contractual requirements. Created comprehensive monthly data analysis, written reports and briefings, program plans/analyses, and others to support logistics and operational matters. Maintained supply and inventory control using Property Book Unit Supply Enhanced (PBUSE) system.
Russell, R. S., & Taylor,B. Operations and Supply Chain Management,8th Edition. Wiley, 2013-12-02. VitalBook file.
W.C. Benton, J. (2010). Purchasing and Supply Chain Management (2nd ed.). New York: McGraw-Hill Irwin.
In any negotiation, preparation is crucial; and having a set, outlined process to follow when preparing helps mitigate a potential oversight of any significant issues within the negotiation. Following a set process also helps one stay on task and in-line with what the important issues and factors are in a negotiation. In Bargaining for Advantage, G. Richard Shell provides a well-structured framework to follow in planning for a negotiation. For this reason, I used Shell’s negotiation preparation framework to plan for the negotiation between Rapid Printing Company (Rapid) and Scott Computers, Inc (Scott).
This case provided the data necessary to perform a cursory supplier financial analysis. In reality, cross-functional sourcing teams must often obtain this data during their assessment of potential suppliers. Discuss possible sources of supplier financial information. What may impact a purchasers ability to obtain supplier financial data 3.
Russell, R. S., & Taylor III, B. W. (2014). Operations and Supply Chain Management, 8th edition. Hoboken, New Jersey: John Wiley & Sons, Inc.
According to our class text Supply Chain Management’s goal is to create fast, efficient, and low-cost network of business relationships to get a company’s product from concept to market. In order to understand the goal we must know that the supply chain is the process the raw materials of a product go through in order to be available to the consumer. The relationships that the business creates are needed in order to create the product, each process the product goes through creates value, the supply chain is often called the value chain. Internet technologies are increasingly making the supply chain management process much more efficient and worth the initial investment. The supply chain management life
I would advise Dave to consider expanding the firm’s definition of what industry they are in. Are they solely in the publishing industry? Or are they in the education industry
PC industry is characterized by fast declining ASP year over year. Together with the increasing component costs from 2009, both Dell and HP are facing squeezing profit margins (HP 2010; Dell 2010). In the first quarter of 2011, HP’s gross margin for its Personal System Group (PSG) is as low as 6.4% (Epstein 2011). Similarly, Dell’s gross margin of PCs is often 3 to 5% (Wang 2010). This indicates that if both