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  • L. Led Comany Case Supplier Evaluation and Selection

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    The director of supply management at L. Led & Company is seeking advice on sourcing strategy for an electronic component used in most of their products. They have historically used three suppliers for this high-volume component: Compo, Damian, and Exeter. These suppliers are evaluated on price/unit, quality, delivery timeliness, and order cycle time. Quality is a top priority but budget is the most important factor. The assistant must complete a supplier evaluation scorecard assigning weights to the four criteria and recommend a sourcing strategy considering factors like single vs multiple sourcing.

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    The director of supply management at L. Led & Company is seeking advice on sourcing strategy for an electronic component used in most of their products. They have historically used three suppliers for this high-volume component: Compo, Damian, and Exeter. These suppliers are evaluated on price/unit, quality, delivery timeliness, and order cycle time. Quality is a top priority but budget is the most important factor. The assistant must complete a supplier evaluation scorecard assigning weights to the four criteria and recommend a sourcing strategy considering factors like single vs multiple sourcing.

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    © All Rights Reserved
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    1K views1 page

    L. Led Comany Case Supplier Evaluation and Selection

    Uploaded by

    elgoog
    The director of supply management at L. Led & Company is seeking advice on sourcing strategy for an electronic component used in most of their products. They have historically used three suppliers for this high-volume component: Compo, Damian, and Exeter. These suppliers are evaluated on price/unit, quality, delivery timeliness, and order cycle time. Quality is a top priority but budget is the most important factor. The assistant must complete a supplier evaluation scorecard assigning weights to the four criteria and recommend a sourcing strategy considering factors like single vs multiple sourcing.

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    © All Rights Reserved
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    Flag for inappropriate content
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    Supplier

    Evaluation and Selection-L. Led & Company



    The director of supply management at L. Led & Company has come to you regarding
    your company’s sourcing strategy for a high volume, electronic component that most
    of your company’s products rely on. Many different suppliers have the capability to
    produce the component. In the past, your firm has used competitive bidding, but has
    typically relied on three different suppliers. The Suppliers’ performance across the
    four key areas is as follows:

    Compo Damian Exeter
    Price/unit $2.30 $2.50 $2.60
    Quality 99.4% 99.2% 5000 PPM
    Delivery on-time 95% on-time 99% on-time 98% on-time
    Order cycle time 2 weeks 3 weeks 24 hours

    The usage is 1,000,000/month. Your Manufacturing/Quality people have estimated


    that the cost/defect is $5.00. Your stakeholders tend to have clear priorities: Quality
    is required but budget is the most important criterion. As a matter of fact it is equally
    important than the three other factors all together.

    Assignment:
    1. Complete a weighted-point supplier evaluation scorecard (view template,
    scores from 0 to 5) to evaluate these suppliers given the data provided. Please
    explain how you did assign the weights to each of the four evaluation
    categories?
    2. 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

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