The Dear John Mower Company

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down even 5% of cost it will show growth and return on the investment of our company, instill keep with our competitor mower,

Implementation:

First advise COO of findings in analysis saying that purchasing / procurement procedures of company need to be change immediately showing that by change the having procurement being the yes or no in procuring what is best for company, will save the company 12% cause fact of matter the company is buying stuff at higher price which does same thing as lower price product. Then call chief engineer to explain why where doing this but with intent of not leaving him out if purchasing finds material with lower price we ask why we not using it and go god clarification can be rendered them then it will be up guess CEO or board so the higher price product can still be obtained then also forming a platform for supplier to come in give their bid why they should be use instead of other companies with same product so just in case any kickbacks can be given Then come with new policies so to identify the need for the material, then analyze the internal factors and external factors why we need that internal being engineering department then external mean does it go against the company objective of growth and be cost effective. Then identify potential suppliers then select suppliers according best product with best price that doesn’t hinder the growth of company by even contracting them for the best price then evaluate decision. With supplier score cards. So when contract up we see they worth that price.

Case Questions:

1. Prepare a list of advantages of the inclusion of supply management and prequalified suppliers.

The advantages of including Supply management and prequalified suppliers

• supports in organizational goals and objectives

• Manages the purchasing process effective and efficiently

• Supports Developing strong relationships with internal and external departments with suppliers

• Supports operational requirements

• Keep track of supply base with internal and external providers

• Supports in obtaining the leverage in negotiating the best price

• Able cut cost with having supply doing the research instead of engineering

• Can help produce other avenues of production material if one source runs continue production can still be done: multisource usage

• Help identify the need of supply

• Help with cost analysis best for business

• Coordinating suppliers with contracts so company is bind to contract pricing so growth even price of material goes up

• Prevent people from going jail in producing policies and procedures that are government initiated.

2. Prepare a list of disadvantages of excluding supply management and suppliers from the new product development process.

Disadvantages –

• Best price may not be obtained

• Cost or loss may become an issue

• Kickbacks and bribes could happen

• Outdate pricing of material

• Giving up leverage

• Bottle necking only having one source of material

• Bull whipping

• Stop of production with one source instead of multisource

• No way of judging the product material is better than next

• No interaction outsources suppliers.

3. Assuming that the three executives agree on early involvement of supply management and suppliers, develop a plan to implement this new way of doing business.

1. get purchasing order of material or prequalify Procurement

2. ask for three quotes of material being purchasing if exceeds the cost effectiveness standard

2.see what the need for material analyze for cost effectiveness and efficiently

3 if meet all the qualifications of procurement the send up change of command for approval

4 if qualification is not met the ask what are the reasons are we obtaining these martial if not cost effective to company.

5.get approval from higher to see if terms of non-cost effective material are agreeable or may have to seek lower pricing or renegotiate cost

6 select supplier and evaluate decision with comparing performance if new supplier is obtaining or leverage was in keeping current