Supply Chain Management

SCM 355, Spring 2018

Systems Technologies

Case Analysis Questions

The team realized this supplier selection decision, which was one of the most critical involving the 9000x product line, was also going to be difficult. Until the team analyzed the numbers and discussed the findings from the field visits, it was clear that no consensus existed among team members concerning which supplier(s) to select. To reach a decision, answer the following questions:

1. Develop a process that provides a logical order to the critical activities and decisions involved in the supplier evaluation and selection process. For example, the first step of this process may include recognizing (or anticipating) that a supplier selection need exists. Subsequent steps should follow from the actual or anticipated need. Present this process in the form of a flow chart with key decision points clearly identified.

2. Discuss possible sources of supplier financial information. Which factors influence the ability of Systems Technologies to obtain supplier financial data? (Hint: Think of supplier characteristics, etc.)

3. What is your recommended sourcing strategy for Systems Technologies? Perform various analyses (see below) to support your decision. Also, make sure to discuss the advantages and disadvantages of single and multiple sourcing.

a. Assume you have used several of these sources to collect supplier financial data (data provided in the case). Perform a supplier financial analysis. Provide a brief interpretation of each financial ratio. (See supporting worksheet)

b. Perform a total cost analysis. (See supporting worksheet)

c. Perform a supplier capacity analysis. How important is supplier capacity in this case? Why?

d. Develop a supplier evaluation and selection tool with relevant performance categories for the sourcing decision under consideration (See supporting worksheet).

e. Develop a sourcing risk management plan. For this task, (1) identify the potential risks associated with a sourcing decision, (2) assess the possible magnitude of each risk to operations, and (3) identify ways to manage or reduce risk exposure. (See supporting worksheet)

4. Based on your previous analyses, make your final recommendations for Systems Technologies!