Case 12-3 Bid Assessment

1. Analysis and criteria of weight evaluation and score assigned to each supplier

Based on the distributor's success in every category, weights have been allocated to

Kathy Saxton's guidelines for strategic sourcing. It was necessary to evaluate suppliers based on

a variety of factors including prior performance, pricing, conditions of order fulfilment

timeliness as well as EDI capabilities and overall product inventories. PCC achieved a score of

69 after weighing the relative importance of every one of the four suppliers, indicating that its

EDI competencies that lagged behind those of the other providers and that its catalog of items

utilized by Hansen was insufficient. Even if Hansen's prior efficiency is a little above standard, a

score of 81 indicates that the Western could meet all of his stocking requirements. With

Provincial's shipping lead time and stock of essential items meeting the company's overall score

of 82, its pricing is greater than other companies. As a final note, although Babcock has the least

overall score of 59, it also has the poorest track record in terms of achieving fulfillment schedule.

Based at the Kathy's requirements, I feel that mobility and customer relationship management are

two things that should be incorporated. Organizations are expected to alter their product lines as

a result of evolving market circumstances, that in significantly influence the purchases they

receive from their distributors. Because of this, distributors should be evaluated on their ability to

respond quickly and effectively. Another factor to consider is the quality of the distributor's

customer relations.

2. Recommendation to Scott Carpenter and why

To have PCC as a distributor for newflex wires, plus Provincial Electric as a distributor

for most other cable needs would be ideal. As a result of PCC's general price concerns, buyers
can only purchase 4000 of such cables in inventory, with the remainder of the inventories being

purchased by Provincial, who has really shown an interest in purchasing $100,000 of the

inventories. There is a possibility that both sides may benefit from this arrangement. Hansen

must also procure the fresh flex cables from the PCC in accordance with the specifications of the

new cables. Provincial Electric ought to be contacted about the remainder of the power cords that

are needed. Due to the fact that each of these firms are in a connection for 5-8 years, individuals

can be relied upon to ensure that the operations of the firm are efficient. I will recommend to

Scott Carpenter that a distribution contract be reached in which the proportion of production is

divided between PCC and Provincial Electric be reached. For newflex cords as well as other

wires and cables, including for various purposes. This collaboration will allow them to keep

existing business relationships with known and dependable organizations rather than taking an

inherent risks by choosing a new distributor or a provider with no previous experience. Almost

all of these businesses have shown that they are customer service focused and that they place a

high value on reliability.