Question
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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