This is the first of four assignments that together involve students in the creation of a comprehensive and realistic supply chain for the product, imported from their designated country, into the Canadian market. Each student team will consider themselves as managers of a Canadian company importing a product that they will in turn sell to customers/consumers in the Canadian wholesale/retail channel associated with that product. Acting as a retail management team, students will therefore be responsible for the business decisions involved in developing and maintaining an effective and efficient supply chain to meet their customer's requirements which includes having the required quantity and quality of product on the shelves or available in their stores for timely sale to consumers.

NOTE: The head office and distribution warehouse shall be within the Province of Ontario.

The importing entity will act as a wholesaler or distributor within the supply chain either to retailers

or as a supplier to their own retail outlets. For this project, they will not sell on the internet. The student management team must consider the annual volume indicated in the "Capstone Import Register" as the optimal order quantity for a year based upon the retailer's experience of their consumer's buying behavior. It will be a management decision as to whether this volume be sourced, procured and imported at one time or in several shipments over the course of a year. It should be noted that by the end of year 1,all the stated annual volume must be imported. The supply chain 'decision making process' is presumed to commence in May 2022. Shipments of product are to start no later than Sept 1, 2022 and be completed by August31, 2023

The management team should draw on the knowledge and skills that they learned and practiced in all of their previous Supply Chain Management courses. Students are therefore responsible for reviewing the previously studied course work, text books, and material as required to address all the Capstone assignment specifications.Sourcing & Procurement - Project 1 Specifications:

execute an effective and efficient supply chain, the management team is required to undertake the following tasks in a detailed report:1. State the company's mission statement, define its customers, its target market and the market segment into which the company intends to sell the product in Canada. 2.Define the product that company management is responsible for importing into Canada based on the Mission Statement. Provide, a brief explanation of its features and characteristics along with any aspects that differentiate the product from that of your competitors. Explain the company's competitive advantage by purchasing this item. 3.Next, identify, clarify and explain your customer's specific needs and wants. The management team should draw upon their knowledge of marketing to consider the relationship between the company's efforts to satisfy customer's requirements via the features, benefits, and characteristics of the product4.Identify a minimum of two (preferably three) possible suppliers in the target geographic market where you expect to make your purchase. Indicate, their location and additional information that may be available to prepare a brief profile of each supplier. The supplier profile should include information such as the size of the company, number of employees, variety of products sold, etc. This information is often readily available on company web sites. NOTE: The management team must provide the names and locations of actual, specific suppliers in their target geographic market 5. a list of' Evaluated Criteria' that will be used to measure supplier performance. These MUST be related to the product you will import. They MUST NOT be 'generic' in nature. Then, using the "Evaluated Criteria' as a reference, prepare a Request for Quotation (RFQ) for the annual order quantity to be obtained from one (1) of the listed suppliers. The RFQ must be prepared for one of the potential suppliers covering all the important details related to the product to be obtained from that outside supplier.

NOTE: The RFQ must provide detailed specifications for the supplier to meet. Detailed specifications

translate into precise requirements and result in higher marks (and in the real world, a better chance of

"getting it right" for the customer.Specifications could include, for example, dimensions, contents,

formulations, quality of performance, or anything that would define the item of supply.

Reference to the above noted features and characteristics will assist in the RFQ's 6. Based upon what you have learned about your suppliers in item 4 above, conduct further research to determine the likely cost of the product if purchased from the named suppliers.

If the cost of the product cannot be found in the market, the management team must research and identify a retail or wholesale price that the product currently sells for in the Canadian market. You would then work backwards, deducting the initial estimated costs associated with bringing the product into the market as well as the normal profit margins that would have been added on by importers, wholesalers and/or retailers. This will give you a product cost somewhat realistic to what you could presume to have paid if you purchased direct. An import costing template has been provided as a guide to cost estimation. NOTE:These costs can be revised in subsequent assignments as more information regarding the importation of the product is obtained.

The price the management team will pay for the product in the target geographic market will require some negotiation. The management team must explain the strategy they would use to negotiate their purchase price. Consideration should be given and explained regarding all of the issues that may require negotiation. Be sure these points are specific to your product and industry and NOT just 'generic' in nature.

In addition, the team must explain in detail the method they will use to be assured they have received the goods per specifications on the PO that will be issued, before payment is authorize7. The management team must explain why the 'supplier of choice' is the preferred source from which they will purchase the product for import. A brief explanation of why this supplier has been chosen is required. NOTE: The choice can be independent of the cost, with consideration of other factors such as features, quality and total cost of ownership. Management must then prepare a Purchase Order document to be issued to the preferred supplier authorizing them to provide you with the product referenced in your RFQ.NOTE: the ONLY Incoterms to be selected in this project (your choice) are: EXW, FCA, FAS.

The management team must include all the essential and important information in the Purchase Order to ensure an effective purchasing decision and a contractual obligation by the supplier to meet the company's requirements.