Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer 1-5 Supplier Performance Evaluation As Purchasing Manager for a leading manufacturer of high end wireless security monitoring systems, you've been challenged by VP
please answer 1-5
Supplier Performance Evaluation As Purchasing Manager for a leading manufacturer of high end wireless security monitoring systems, you've been challenged by VP of Supply Chain to improve the cost and reliability of supply for the core digital camera device for your company's security systems. Recent complaints from your top customer has escalated supplier performance as a key strategy for the coming fiscal year. Coming out of a recent off-site strategy meeting, the executive team believes that a key step in the supplier improvement process will be to more fully evaluate and potentially rationalize the number of suppliers currently supplying the camera device. You currently purchase camera devices from four (4) suppliers to ensure competitive pricing. However, despite the success you've realized in minimizing inflation for these devices and recognition you've received from your manager, in your last performance review you acknowledged to your manager that the number of complaints you've been receiving (formal and informal) has increased notably over the last 6 months. At the conclusion of your performance review, you and your manager agree that a more robust evaluation system is needed to more completely evaluate supplier performance and ultimately the true cost of doing business with them. Fast forward 3 months> Your company has been tracking supplier performance measures for years in the categories of cost, quality, service, and innovation - the last 12 months' data for the 4 suppliers of digital cameras is in the table below. With the increased emphasis on total performance, you know the traditional metrics aren't going to be good enough to make a fully informed assessment of the suppliers' performance. With the help of one of your peers in the Cost Accounting group, you were able to calculate costs of nonperformance as well. Supplier Performance Evaluation As Purchasing Manager for a leading manufacturer of high end wireless security monitoring systems, you've been challenged by VP of Supply Chain to improve the cost and reliability of supply for the core digital camera device for your company's security systems. Recent complaints from your top customer has escalated supplier performance as a key strategy for the coming fiscal year. Coming out of a recent off-site strategy meeting, the executive team believes that a key step in the supplier improvement process will be to more fully evaluate and potentially rationalize the number of suppliers currently supplying the camera device. You currently purchase camera devices from four (4) suppliers to ensure competitive pricing. However, despite the success you've realized in minimizing inflation for these devices and recognition you've received from your manager, in your last performance review you acknowledged to your manager that the number of complaints you've been receiving (formal and informal) has increased notably over the last 6 months. At the conclusion of your performance review, you and your manager agree that a more robust evaluation system is needed to more completely evaluate supplier performance and ultimately the true cost of doing business with them. Fast forward 3 months> Your company has been tracking supplier performance measures for years in the categories of cost, quality, service, and innovation - the last 12 months' data for the 4 suppliers of digital cameras is in the table below. With the increased emphasis on total performance, you know the traditional metrics aren't going to be good enough to make a fully informed assessment of the suppliers' performance. With the help of one of your peers in the Cost Accounting group, you were able to calculate costs of nonperformance as well Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started