L. Led & Company Case - Scorecard PDF [PDF]

Zitiervorschau

Template: Supplier Evaluation Scorecard

Evaluation scorecard

Weight in %

Score 0-5 pts.

Total

Supplier name: Compo

Evaluation scorecard

Weight in %

Score 0-5 pts.

Total

Supplier name: Damian

Evaluation scorecard

Weight in %

Score 0-5 pts.

Total

Supplier name: Exeter

Price per unit

50

5

2.50

Price per unit

50

4

2.00

Price per unit

50

3

1.50

Quality

25

4

1.00

Quality

25

3

0.75

Quality

25

5

1.25

Delivery on-time

15

3

0.45

Delivery on-time

15

5

0.75

Delivery on-time

15

4

0.60

Order cycle time

10

3

0.30

Order cycle time

10

2

0.20

Order cycle time

10

5

0.50

100%

-

4.25

Overall score

100%

-

3.70

Overall score

100%

-

3.85

Overall score

Conclusion / recommendation:

Refer to the consecutive slides for details

Worldwide Procurement

Please explain how you did assign the weights to each of the four evaluation categories? As per the case, the management have clearly stated that the price is the most important factor. As a matter of fact it is equally important than the three other factors all together. Hence a weightage of 50% is given to the cost factor. Next the defects costs us $5/defect. This is almost twice the price of the product itself. So even Quality has a huge say. That’s why out of the remaining 50%; 25% weightage is assigned to the Quality factor Now since our monthly requirement is tremendous, we’ll order in bulk and can manage ordering well ahead of time hence the remaining factors play slightly less important roles and have given weightage accordingly. So the On time delivery has been assigned a weightage of 15% and the lead time is given the weightage of 10% Worldwide Procurement

Recommend a possible sourcing strategy for this item, including the discussion of the critical factors that you should consider when deciding whether to single source or multiple source this item Given the criticality of the part (1,000,000parts/month), we should not remain dependant on a single source. We already have established these three suppliers and we should leverage their capabilities to our advantage. Possible Sourcing Strategy: Our prime focus should be to buy from Supplier 1, Compo, since he scored the highest among the three and is offering the product at least price (remember, price is our priority here) Supplier 3, Exeter, should also be continued since the quality and the lead time he is offering is phenomenal. The sourcing team should have a long time goal of developing good relations with this supplier to get better deals w.r.t the prices by giving them a volume of business. This would be a win-win situation for both the parties. Worldwide Procurement