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)