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    Solutions Manual

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    107 views7 pages

    Managing Supply Chain and Operations An Integrative Approach 1st Edition Foster Solutions Manual

    Uploaded by

    reumetampoeqnb
    Solutions Manual

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 7

    Managing Supply Chain and Operations

    An Integrative Approach 1st Edition


    Foster Solutions Manual
    Visit to download the full and correct content document: https://testbankdeal.com/dow
    nload/managing-supply-chain-and-operations-an-integrative-approach-1st-edition-fost
    er-solutions-manual/
    Chapter 7: Supplier Management
    Chapter Outline

    1. Identifying Needs
    a. Identifying the Need for Materials
    b. Identifying the Need for services
    c. Identifying the Need for a Type of Relationship
    2. Supplier Selection
    a. Identifying Supplier Requirements with Weighted-Factor Analysis
    Solved Problem 7.1 > Creating a Weighted-Factor Analysis
    b. Searching for Potential Suppliers
    c. Supplier Evaluation
    Solved Problem 7.2 > Supplier Evaluation Using Weighted-Factor
    Analysis
    d. Negotiating the Agreement
    3. Supplier Development
    a. Identifying Suppliers to Develop
    b. Forming a Cross-Functional Team
    c. Involving Top Management
    d. Identifying Opportunities
    e. Developing Key Metrics and Cost Sharing
    f. Agreeing on Projects and Resources
    g. Monitoring Status and Modifying

    4. Providing Feedback: The Supplier Scorecard


    a. Designing and Implementing the Supplier Scorecard
    Solved Problem 7.3 > Supplier Scorecard Design
    b. Delivery and Cost Assessment
    c. Supplier Awards

    Chapter Learning Objectives


    1. Understand the Importance of Identifying and Applying the Correct
    Specification for Materials, Services, and Type of Business Relationship
    2. Make Informed Supplier Selection Decisions
    3. Constructively Create and Develop Supplier Relationships
    4. Provide Constructive Supplier Feedback

    1. Identifying Needs
    A specification is documentation that tells buyers what to buy and the suppliers what is
    required of them. It is a descriptive document for the assigned supply manager. Supplier
    management is the processes of forging strong links by identifying what is needed and then
    selecting, developing and actively managing the supply base.
    1. Identifying the Need for Materials

    Copyright © 2016 Pearson Education, Inc. 7-1


    a. A simple specification is given to meet a particular function but not
    many other details.
    b. A complex specification is one that details the exact quantities of each
    material and the precise manner in which the item should be made.
    They are generally very lengthy, sometimes more than a hundred
    pages.
    c. Simple specifications, which require fewer resources, are generally
    used when there is a high confidence level in the supplier. Precision is
    not important and or it is a brand name or product number.
    2. Identifying the Need for Services
    a. Specifications for services are called a scope of work.
    b. It is more difficult to communicate what is needed in a service than in
    a product.
    c. Whether you are identifying materials or services, the specification
    must include some type of metric for acceptable performance.
    3. Identifying the Need for a Type of Relationship
    a. Most buyer-supplier relationship now are collaborative as opposed to
    relatively short term and arm’s length in nature, as in the past.
    b. Transactional relationships are appropriate when the buyer has many
    supplier choices, there is no need for sharing corporate information, a
    routine item is being purchased, or technology innovation is not
    required from the supplier. These relationships are also referred to
    arms-length relationships.
    c. Collaborative Relationships are appropriate when the buyer has
    limited supplier options, is procuring a critical item, needs technology
    innovation or supply availability is critical. These relationships do not
    happen overnight and need nurturing. These relationships result in
    many positive outcomes including improved performance and higher
    productivity for the firm.

    TEACHING TIP
    Describe the term “global collaboration” and its relevance to positive results in the automotive
    industry, as outlined in the chapter.

    2. Supplier Selection
    1. Identifying Supplier Requirements with Weighted-Factor Analysis
    a. Weighted-factor analysis (WFA) is a multi-criteria decision-making
    method using weights and can be done by using a simple spreadsheet.
    b. Multiple criteria decision making (MCDM) is a tool that is simple and
    used often in WFA analysis.

    Copyright © 2016 Pearson Education, Inc. 7-2


    c. An agreement by a cross-functional team of a weigh factors and their
    importance in the process gives the first two steps in the process. Then
    the search for a supplier can move forward.

    2. Searching for Potential Suppliers-


    a. Alternative sources for potential suppliers
    i. Current suppliers
    ii. Internet
    iii. Trade registers
    iv. Trade journals
    v. Company personnel
    vi. Trade shows
    vii. Professional organizations

    b. - A request for quote (RFQ) or a request for proposal (RFP) is


    the formal document that has all the details for the prospective
    suppliers.

    3. Supplier Evaluation: Once the list is narrowed of possible suppliers, the


    next step is obtaining a supplier self-assessment, which includes an
    analysis of the supplier’s financial and operational operations.

    4. Negotiating the Agreement


    a. Preparation—90 percent of negotiating the agreement is in the
    preparation.
    b. It is best to have a negotiation plan, which outlines all the
    contract terms that needs to be negotiated.
    c. Win-win is the term used of a healthy buyer-supplier relationship
    achieved when negotiations are successful.
    d. Debriefing session is when the team meets to discuss feedback
    on the negotiating process.

    TEACHING TIP
    Discuss the makeup and the interaction between team members in the selection process of a
    supplier.

    3. Supplier Development
    1. Identifying Suppliers to Develop: Supplier development is the process of helping
    a supplier improves its performance. The first step is what supplier relationships
    will benefit from this development.
    2. Forming a Cross-Functional Team: includes all parties with interaction with the
    supplier
    3. Involving Top Management: Their support is absolutely necessary.

    Copyright © 2016 Pearson Education, Inc. 7-3


    4. Identifying Opportunities: factors such as volume or failures in the past of critical
    suppliers.
    5. Defining Key Metrics and Results: Determining at the beginning of the process
    what success looks like.
    6. Agreeing on Projects and Resources: The team must get the commitment for the
    necessary resources and this step is where the process stalls.
    7. Monitoring Status and Modifying: To achieve success, relationship management
    is critical to supplier development success.

    TEACHING TIP
    Stress the importance of a successful relationship management experience when working on
    supplier development. The relationship must be especially trustful.

    4. Providing Feedback: The Supplier Scoreboard


    A supplier scorecard is a communication device that serves two roles.
    1. It identifies the supplier performance metrics that are most critical.
    2. It enables the evaluation of suppliers against these metrics.
    3. Designing and implementing the supplier scorecard includes
    a. Identifying how the supplier affects the firm
    b. Ensuring that the first step is balanced and objective
    c. Ensuring buy-in by the supplier by getting them involved at
    the front end of the process
    d. Training the suppliers in the metric final scores
    4. The delivery and cost assessment includes an evaluation of on-time
    delivery, an important performance metric for suppliers.
    5. Supplier award programs, methods for identifying and rewarding
    outstanding suppliers, use supplier scorecards as the documentation
    required.

    TEACHING TIP
    Discuss the metrics you would list for this supplier scorecard.

    In Class Activity
    1. Ask the students why there should be such as emphasis on suppliers in a firm’s
    operations.

    Class Discussion Questions


    1. Because many suppliers are out of the country, are supplier relationships and
    supplier development still critical in the business process?
    2. Discuss the issues of Apple and Foxconn in the supplier relationships. Why are
    Foxconn’s operational problems Apple’s problems?

    Copyright © 2016 Pearson Education, Inc. 7-4


    Video Suggestion
    Discussion Topic: What are the pros and cons of the Apple/Foxconn relationship?
    Search the Internet for “Apple-Foxconn relationship probed by 'Sunday Morning'” on
    Cnet.com, for a video discussion of this mutually rewarding business relationship.
    Running Time: 10:06 minutes.

    Copyright © 2016 Pearson Education, Inc. 7-5

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