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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     Delivery

A         90    90        95    Overseas supplier (transport lead time 3 weeks)

Supplier  Price  Quality  Delivery     Delivery

B       105    100       100        Supplier facing financial issues

Supplier  Price  Quality  Delivery     Delivery

C       85     85        95  Proximity supplier (transport lead time 3 hours)

Operation Management, Management Studies

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