University of the People

BUS 5116: Operations Management

Written Assignment Unit-4

                                                            Dr. Tokunbo Osinubu

Masters of Business Administration (MBA)

December 8th, 2020

Abstract

This paper shall examine the vendor choice method in the operations of an organization in light

of the choice to subcontract part of the company’s worth chain. Specifically, this paper shall

make recommendation to the Chief Procurement Officer classify the suppliers to subcontract, for

three (3) years wherever the business operates during a mature market wherever the qualifying

and winning factors are quality and time to client. In the alternate, the proposal shall conjointly

examine that vendor would best match the company’s need wherever the qualifying and winning

factors are modified to cost and quality.

Analysis of the Case Study:

From the three (3) vendors A, B and C. each vendor has some weakness and worthy points.

For vendor A we will see that transport lead time is three(3) weeks and also the value, quality

and delivery speed aren't good enough. If vendor let us down, we tend to might let our client

down that is why reliability is very important once choosing suppliers. (n.d.).

Therefore, after we select the vendor, we would like to understand the location and details ought

to be checked before choosing suppliers. Generally, it is difficult to decide on overseas suppliers.

The price of the vendor B is more than vendor A and C. After assessing the standard and its

delivery time, it is spectacular. This vendor has 100% quality that is very important. “The quality

of your products has to be consistent - your customers attribute poor quality with you, not your

suppliers.” (n.d.). Therefore, customers can come with quality. However, this vendor is facing

money constraints, which need to be consider before making decision; however. Because of the
delivery time and 100% quality that makes me attracted with this vendor and will offer the

vendor the contract. Because of money issue, an advance payment will be offer to this vendor

which will enable the supplier to supply and the vendor has good quality than other vendors.

Supplier C has lower costs and lower quality; however, deliver transport lead-time is low as three

(3) hrs. Vendor C is cheaper than A and B. This does not mean this is often best vendor. This

vendor conjointly lower quality than A and B. In supply chain time is of significant and on time

delivery conjointly that is nice on vendor C. we all know that a lot of time higher quality product

is not cheaper, therefore this is often cheaper which suggests that it'd be not higher than 2

suppliers. The vendor delivery is barely three hours that is nice however generally they are going

to reduce to rubble the orders; therefore, I do not wish to decide on this vendor.

It is difficult to decide on one; because of the vendors has positive and negative components.

As a purchase analyst for the business, i might suggest vendor B once evaluating vendors

supported value, quality and delivery speed. The one risk issue is vendor B faces money

constraint and I believe this could be mitigated by giving advanced payment to vendor B.

However If we elect A and C, we cannot create corrections easily. Therefore, if suppliers B is

creating their quality works and time delivery, they are going to catch up presently their

business.

Therefore, we tend to do 3 years contract and that i am pretty positive this is often the simplest

suppliers. Customers solely concern about the standard and delivery on times.
“The development of competitive priorities comes from the creation of a company strategy,

market research, shaping core processes and conducting a desires analysis. To form competitive

priorities, a company evaluates operational prices, the standard of a product or service, the time it

takes to develop and deliver a product or service and also the flexibility of a product or service

with reference to selection, volume and customization.

Competitive priorities ought to embrace having the ability to supply a top quality product or

service at a good value that systematically meets the wants of a client.” (Richards-Gustafson,

2018).

“The lowest value isn't forever the simplest worth for cash. If you wish dependability and

quality from your suppliers, you will have to determine what quantity you are willing to get your

customers and also the balance you wish to strike between value, dependability, quality and

repair.” (n.d.) .After reviewing all suppliers, I will go along with B attributable to their quality,

value and fast delivery.

Let say now that my organization’s selection standards changes form quality and time to quality

and price, I will greatly give consideration to vendor A. Vendor B has money constraints but

because of the quality and delivery time we have decided to award the contract to vendor B.

Vendor C has poor quality among all the vendors. Our market is still sensitive to quality and our

organization cannot compromise.

That’s make vendor A the best alternative vendor, though it is an oversea vendor and the

delivery lead-time is 3 weeks. The quality is better and is the same as vendor C.
References:

James, T. (2011). Operations Strategy. Bookboon.

Lu, D. (2011). Fundamentals of Supply Chain Management.  Bookboon.

Richards-Gustafson. (2018). 5 Core Operational Strategies.

https://smallbusiness.chron.com/5-core-operational-strategies-15488.html

SCRC SME. (2017). What is Supply Chain Management (SCM)?

https://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management-scm

(n.d.).

Supplier Selection Process. https://www.infoentrepreneurs.org/en/guides/supplier-selection-

process/