Supply Chain Question
The deliverable should be a clear, concise, and compelling write-up that covers the four sections described above. Your write-up should be no longer than two pages of text—i.e., 900 words—plus exhibits. Show your word count in the upper-right corner. In addition, you must submit your Excel spreadsheet including the Scorecard and Financial Analysis. It is expected that you will include formulas in the cells where appropriate. Be sure your ratio and scorecard printouts are clear and accurate. Also, be sure your summary clearly communicates your recommendation.**
Please follow the instructions below:
Evaluate individual suppliers. Each member of the group will select one of the suppliers from the initial supplier list for evaluation. This part of the project is to be completed and submitted individually. (No in-class update)
It is expected that you will use headings and sub-headings to organize your paper. Each individual should do the following as part of the analysis of his or her supplier:
Supplier Description (no longer than 150 words):
Provide basic demographic information. Where is the company headquartered? How big is it—revenue and number of employees?
Be sure to explain why you are considering this particular company. That is, why did this company make it to your finalist list? How does it fit the strategic needs of your company?
Supplier Scorecard Results (no longer than 300-500 words):
Any suggested revisions to your scorecard from Part 3 must be made prior to submitting Part 4
In this section, you will assign ratings to each of the scorecard criteria for your supplier. Please be sure not to discuss with your teammates the score you assign for your supplier unless you are using a “relative method of measurement” requiring the scores to be shared. Scores should be determined individually. You will have an opportunity in Part 5 to collaborate on the scoring and make any appropriate adjustments.
Discuss the highlights related to your scorecard analysis. Share the most important facts, i.e., the ones that lead to your score in the evaluation. For instance,
- What does each unit cost? What is its on-time delivery record? What is the defect rate?
Does the supplier run lean, six-sigma programs?
Is the supplier a leader in corporate social responsibility – do they have CSR certifications?
- Does the supplier have the capacity/scale to meet your needs?
- Can the supplier fulfill your orders from multiple plants/stocking points around the world?
The highlights should be associated with EACH OF the criteria you identified as important to the selection process. If you find something unexpected during the research, be sure to share this as well.
- Include three tables in your appendix:
A table with the scorecard results for this supplier (also submitted in Excel)
A table summarizing your justification for the score assigned for each criterion.
- A table summarizing the complete financial analysis (see below- also submitted in Excel)
- Financial Analysis and Evaluation (no longer than 200-300 words):
- Describe the financial health of your supplier by interpreting the ratios. Be sure to highlight the ratios that gave you insights into the supplier’s health—or lack thereof.
- Provide a table that clearly shows the financial ratios (see Appendix II for details). Calculate these ratios for the past three years. (A spreadsheet will make the number crunching easier – I expect to see formulas in the appropriate cells). Use this analysis to consider trends that might affect the supplier’s future financial stability. If a ratio cannot be calculated, explain why. The ratios must be accurate.
- Recommendation (no longer than 100 words): Is the supplier a viable option? Why? How strong of a recommendation would you give the supplier? Can you/should you argue for your group to select this supplier?
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