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Case Study: The supplier selection process is a critical act…


 

Case Study: 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 company. You have been asked to create 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

Provide a 2-3 page paper proposal, as the Procurement Analyst, that outlines the issues of the case, states your choice of supplier and provides a rationale for your choice. 

Before you begin writing, please see the General Guidelines for Case Studies and review the assessment criteria below. 

Papers will be assessed on the following criteria:

  • Description of the Case and Identification/Coverage of Major Issues
  • Depth and Scope of Analysis
  • Solutions and Strategies
  • Writing Clarity and Quality
  • APA formatting

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