Free

Vendor Analysis - Case Study Example

Comments (0) Cite this document
Summary
From this, I recommend Premier Arts as the best supplier because of the highest weighted score. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.7% of users find it useful
Vendor Analysis
Read TextPreview

Extract of sample "Vendor Analysis"

Case study Exercise SUPPLIER A SUPPLIER B category weight sub-weight score weighted score
score
weighted score
QUALITY
0.2





ppm defects

0.07
4
4*0.07= 0.28
5
0.35
SPC

0.08
4
0.32
5
0.4
TQM system

0.05
4
0.2
5
0.25
COST STRUCTURE
0.15




0
Cost reductions

0.1
5
0.5
3
0.3
cost relative to industry

0.05
4
0.2
3
0.15
MANAGEMENT CAPABILITY
0.1




0
labour relations

0.05
3
0.15
4
0.2
confidence in management

0.05
4
0.2
3
0.15
FINANCIAL VIABILITY
0.1




0
liquidity ratio

0.05
3
0.15
4
0.2
inventory turnover rate

0.05
4
0.2
3
0.15
debt to equity ratio

0.05
4
0.2
3
0.15
DELIVERY
0.15




0
on time

0.1
5
0.5
4
0.4
lead time

0.05
4
0.2
5
0.25


0.05
5
0.25
3
0.15
TECHNOLOGICAL CAPABILITY
0.2




0
innovative products

0.05
4
0.2
3
0.15
research and development (R&D)

0.05
4
0.2
3
0.15
GENERAL
0.1




0
Problem Solving Ability

0.05
3
0.15
5
0.25
Corrective response

0.05
4
0.2
4
0.2
TOTAL
1


4.1

3.85
From the above table, the recommended supplier is supplier A with a score of 4.1 which is more that supplier B’s, 3.85
Exercise 2



SUPPLIER A
SUPPLIER B
category
weight
sub-weight
score
weighted score
score
weighted score

0.2





ppm defects

0.15
5
0.75
4
0.6
TQM system

0.05
4
0.2
4
0.2

0.2





Cost reductions

0.1
3
0.3
4
0.4
cost relative to industry

0.1
4
0.4
5
0.5

0.1





liquidity ratio

0.05
5
0.25
4
0.2
debt to equity ratio

0.05
4
0.2
3
0.15

0.3





on time

0.2
5
1
4
0.8
lead time

0.1
4
0.4
5
0.5

0.2





labour relations

0.1
3
0.3
4
0.4
confidence in management

0.1
4
0.4
3
0.3
TOTAL
1


3.5

3.35
The supplier I recommend is supplier A with weighted score of 3.5
Exercise 3
Supplier performance criteria
Scale
Definition
5
All shipments received in excellent conditions
4
Up to and including 5% of shipments received have damaged pallets or cartons
3
>5% to 10% of shipments have damaged pallets or cartons
2
>10% to 20% of shipments have damaged pallets or cartons
1
>20% of shipments have damaged pallets or cartons
Quality Performance Criteria
Scale
Definition
5
All shipments have < or =1,000 ppm defects
4
shipments have > or = 1,000 ppm defects
3
shipments have > or =10,000 ppm defects
2
shipments have > or =15,000 ppm defects
1
shipments have > or =20,000 ppm defects
Drop box Assignment #3 Vendor Analysis


Tonga Inc
Mestro Inc
Premier Arts
category
weight
score
weighted score
score
weighted score










Delivery
0.4
3
1.2
4
1.6
4
1.6








Order cycle time
0.3
2
0.6
1
0.3
4
1.2








Price
0.2
5
1
4
0.8
3
0.6








Quality
0.1
2
0.2
3
0.3
4
0.4
TOTAL


3

3

3.8
From this, I recommend Premier Arts as the best supplier because of the highest weighted score.
Rating used
Delivery performance of suppliers
Scale
Definition
5
100% on time
4
>95% but 90% but 85% but less than 90% on time
1
1 week but less than 2 weeks cycle time
2
>2weeks but less than 3 weeks
1
>and equal to 3 weeks
Supplier performance on price
Scale
Definition
5
Price equal to or more than $130
4
Price > but equal to $140
3
Price > but equal $150
2
Price > but equal to $160
1
Price > $170
Quality performance of suppliers
Scale
Definition
5
All shipments have < 1,000 ppm defects
4
shipments have > or = 1,000 ppm defects
3
shipments have > or =10,000 ppm defects
2
shipments have > or =15,000 ppm defects
1
shipments have > or =20,000 ppm defects
Question 6
Two other ways of classifying supplier’s performance include: evaluating capability and evaluating past performance. Evaluating capability involves looking at the staffing structure of the supplier to ensure that they have high chance of being competent in their delivery. Evaluating past performance involves accessing previous experiences in the industry to determine whether history favors them in terms of their performance (Gordon, 2008).
Question 7
Multi-sourcing a critical item comes in handy in a case of demand surges, which calls for use of multiple sources, which promote flexibility from variety of suppliers.
References
Gordon, S. (2008). Supplier evaluation and performance management excellence. Boca Raton, Fla: J. Ross. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Vendor Analysis Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
Vendor Analysis Case Study Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/business/1700167-vendor-analysis
(Vendor Analysis Case Study Example | Topics and Well Written Essays - 500 Words)
Vendor Analysis Case Study Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/business/1700167-vendor-analysis.
“Vendor Analysis Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/business/1700167-vendor-analysis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Vendor Analysis

Vendor Managed Inventory

...Vendor Managed Inventory Inventory turnover means the number of times we convert stock into sales revenue. A higher stock turnover rate will therefore mean that in a particular period, more stock has been sold. The converse is true. Stock turnover is therefore important in the sense that:- The ratio (cost of sale/value of inventory) gives the user of the financial statements the rate of investment. It will be needful to deal with a non-sellable product line. Preference should be given to stock with a higher stock turnover because this will mean higher rate of return. Holding of stock is associated with stockholding of costs which include security of the stock; insurance; rent and even pilferages. It is...
4 Pages(1000 words)Essay

Vendor Management

...In this section I will describe and explain the concepts, models and theories that are relevant in the field of multi vendor management and necessary to facilitate a comprehensive analysis and understanding of the research question .It may be useful to conceptualize the term vendor management in freight forwarding companies 2.0 Introduction According to Tony (2007), freight forwarding is the function of establishing the goals the vendor managers are required to utilise their prospect to achieve the goals by means of the third party companies (Tony 2007). In selecting the vendors, Tony (2007) stipulates that management must have to keep maximum care...
23 Pages(5750 words)Case Study

HRIS Vendor Analysis

...COVER PAGE (This page was intentionally left blank as instructed) TABLE OF CONTENTS I. Cover page .. 01 II. Table of Contents ....... 02 III. HRIS Vendor Analysis ... 03 IV. HRIS Company Profiles .. .. 05 i. Auxillium West ... 05 ii. Apex Business Software ..... 06 iii. Atlas Business Solutions ..... 07 iv. Ascentis Corporation .... 08 v. Spectrum Human Resource Systems Corporation ..... 09 V. Endnotes ... 11 VI. Work Cited . 12 HRIS VENDOR ANALYSIS This HRIS Vendor Analysis utilizes the company profiles of five HRIS software vendors in the USA. The summary and analysis are as...
8 Pages(2000 words)Research Paper

Operating Systems Vendor lock-in

... source software is usually available, it just is not as easy as Microsoft right now. By using Microsoft you have standard platform for all users in your office and worldwide. This is the opposite of Linux, which has multiple distributors delivering similar, but not the same products. This is where many concerns originate. Just because something is cheaper doesn’t always mean it has the competitive advantage. Software price is just one factor, as other factors prove to be more significant. Primarily compatability, standardization, ease of use and reliability. Because of these aspects, Microsoft still has the advantage. What the future hold is uncertain, in terms of new applications and products from other vendors... , which will be...
2 Pages(500 words)Essay

Architectural and Environmental Constraints of Vendor Support

...Architectural and Environmental Constraints of Vendor Support Introduction: Partnering for collective business gains and co branding in a shared market space is the rising trend. Vendor support, outsourcing of work and contractual employment are the three key employment options that are growing in terms of proportion and popularity in the job market. However the long term stability and success totally depends on the flexibility, agility, scalability and adaptability of Vendors. Factors influencing vendor selection: Few of the key factors that should influence vendor selection for short and long term projects in a hiring organisation (Parent...
2 Pages(500 words)Essay

Modular questions for vendor systems

...Modular Questions for Vendor Systems John Jones Module 4 DQ In order to ensure their healthcare facility is compliant with the 2014 deadline for the electronic health record (EHR), the informatics professional has many choices available to him or her. The two main methods of incorporating EHR, also called EMR, are “best of breed” and integrated systems. A good example of best of breed is if the current system the HCF is using is working very well, new EMR software could upgrade the current OS very easily. In contrast, starting completely over with all new software constitutes the integrated system (Kleaveland, 2007). Although both best of breed and integrated system are very different and have their own particular...
2 Pages(500 words)Article

Merits of Vendor Managed Inventory

.... These problems are usually caused by the country’s holiday season and the weather conditions. The two factors play a crucial role in the determination of customer preferences. The problems affecting the operations of Green Chilly can be addressed using a number of techniques. It is vital to consider the merits, demerits and risks of the techniques with respect to the problems facing Green Chilly. The four techniques that will be applied to the problems are vendor managed inventory, ABC analysis, supply scheduling and e-procurement. ABC Analysis Activity based costing or ABC analysis is a supply chain method that allocates direct expenses and overhead to the essential...
11 Pages(2750 words)Essay

Supplier and Vendor Selection Process

...Memo The Chief Executive Officer April 5, Choosing of Suppliers and Vendors It comes to my knowledge that vendors and suppliers for various materials in the company are required. The materials the company needs include office equipment among others. Given the many suppliers interested in the contract, there is the need to develop selection criteria that shall determine the best candidate for the contract. Selection criteria also enable the company to align its needs to the terms of the contract at hand. In essence, it eases the selection process by enumerating the qualities to be looked for in the supplier and/or vendor. The first criterion to be used is the reliability of the...
2 Pages(500 words)Essay

Experience of vendor

...Teacher Experience and opinion as a vendor My experience in in vending may be limited to selling lemonade and sandwich when I was still a kid. I am aware that this experience may not be as tough such as those I see in the streets of Thailand or Philippines during our travel but this experience provided me an insight on how it is to do vendor selling. With this experience, I learned important lessons that I could use in life. The lessons I learned from this experience are learning the basic principles of business, it is hard to make money, reward of financial independence and being financially wise. Being a vendor even with a simple product such as selling lemonade to our community...
2 Pages(500 words)Essay

CLOUD COMPUTING

...or SaaS, Platform as a Service or PaaS, and Infrastructure as a Service or IaaS (Srinivasan, 2014, p. 26-34). Cloud computing has become an important service for many businesses regardless of size. Some of the benefits that can be realized from the adoption of cloud computing include but not limited to a substantial reduction in operational expenses. The City of Pittsburgh knew about the benefits and took on the process of exploiting them. The aim of this essay is to assess the overall procedure that the City of Pittsburgh used towards cloud adoption. The structure will mostly be based on the issues that prompted the adoption of the technology and then the procedure used in choosing the vendor. ...
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Vendor Analysis for FREE!

Contact Us