Describe supplier selection and evaluation process and what are the differences between local and global sourcing? Explain also in which situations either of the options are preferable.
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Describe supplier selection and evaluation process and what are the differences between local and global sourcing? Explain also in which situations either of the options are preferable.
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- Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material?Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Explain the role of performance measurement in managing supply chain activities.
- (a) Evaluate the criteria that Khind Holdings could use to assess potential suppliersin its global sourcing efforts.Foreign vendors are added to a company's supply chain for a variety of reasons. However, the fundamental motivation for utilising an international provider is because that source is thought to offer better value than a domestic supplier. Explain ANY FOUR reasons for global sourcing and make reference to the attachmentExplain the alternatives to worldwide sourcing ?
- Organisations today aim at expanding their supply base and including foreign suppliers primarily for getting a better value as compared to domestic suppliers - Explain with reasons. In the light of above statement explain the benefits of Global SourcingDiscuss why single-sourcing is attractive to some companies.Outsourcing Analysis Your company sells riding gloves and has the following three options: Option 1: Make your own gloves at your own plant Fixed cost at own plant = $3 million Variable cost/pair at own plant = $5 Option 2: Outsource to a supplier in the same town Fixed cost at supplier’s plant = $2 million Variable cost/pair at supplier’s plant= $7 Option 3: Buy from Mexico at $4/pair but you need to pay a one-time set-up fee of $6 million Indicate over what range each of the alternatives Option 1, 2, 3 is the low-cost choice. Please show all calculations.