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The supplier selection process is a critical activity within the operations of a company. Once the outsourcing decision is taken, a process aimed at analyzing

The supplier selection process is a critical activity within the operations of a company. Once the outsourcing decision is taken, a process aimed at analyzing and choosing the appropriate suppliers begins.

Suppose that you are a Procurement Analyst in a large eco- rugs company using recycle plastic. You have been asked to make a proposal to the Chief Procurement Officer identifying the best supplier to outsource, for a 3-year period, a complex part of your company's value chain. Your company operates in a mature market where the qualifying and winning factors are quality and time to customer respectively.

Based on the information included in the table, address the following questions:

  • What supplier would you select?
  • What is your rationale for your election?
  • What supplier would you select if your company's factors changed to price and quality? Would your election change?
Supplier Price Quality Delivery Others
A 90 90 95 Overseas supplier (transport lead time 3 weeks)
B 105 100 100 Supplier facing financial issues
C 85 85 95 Proximity supplier (transport lead time 3 hours)

*Figures are expressed in % as follows:

  • Price: price quoted by supplier vs. outsourcing company target price
  • Quality: parts accepted vs. parts delivered
  • Delivery: parts delivered on time vs. parts delivered

Polychem USA. (2018, April 10).Carpeting made from recycled plastic bottles. Retrieved from https://polychem-usa.com/carpeting-made-recycled-plastic-bottles/

USC Viterbi School of Engineering. (2017, August 9).Recycling plastics: New Recycling Technology and biodegradable polymer development. Retrieved from https://illumin.usc.edu/recycling-plastics-new-recycling-technology-and-biodegradable-polymer-development/

Hopewell, J., Dvorak, R., & Kosior, E. (n.d.).Plastics recycling: challenges and opportunities. PubMed Central (PMC).https://doi.org/10.1098/rstb.2008.0311

O.brek Leaders in Packaging(n.d.). How are plastic bottles recycled? . Retrieved from https://www.oberk.com/how-are-plastic-bottles-recycled

pls add Link for references and citation use.

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