Case #3 Discussion Questions

1. After carefully analyzing the advantages of basing a suppliers overall evaluation on its lowest performance on one of the five dimensions (Quality, Delivery, Cost Management, Technical Support and Wavelength), I have come up with the conclusion that it points out a direct weakness that the supplier has, which most likely is filterable. It also lets you see other options that could be employed for different performance directions if needed. This as well assists you to create an uninterrupted flow in the production goods and services by being aware of their defects.

2. If we analyze each of the five dimensions separately and rate them on their importance, personally I think that all of them are equally important for the supply chain. And these are some of the measurements that I would introduce: For Quality and I would allow ten defective items per every hundred that its produced, and once a hundred defective products are delivered to me a discount would apply. For Delivery, no more than 2 days late, we need to maintain some flexibility and understand that problems may occur; as well as implementing incentives to delivery on time (Ex. Once a year of on time delivery we should provide some king of monetary incentive or increase the amount of product purchased form such company). Talking about Cost Management I would seriously consider competitive pricing, try to negotiate with the supplier to obtain the best price possible. Also consider if the supplier would be willing to cover the delivery expenses. For Technical Support, when you are making an order online, and if I had to contact them, how fast is the response. I would give the supplier 1 day to reply online, and to assist me in case of inquiries or difficulties. Talking about Wavelength, Communication is very important, this could help avoid problems in the future, clear communication is crucial; their attitude as well, if are they helpful or not, and if they have tolerance with the customer

3. Weights for the 5 Supplier Dimensions, rated over 100:

Quality: 20
Delivery: 20
Cost Management: 30
Technical Support: 10
Wavelength: 20 100 We can see that the objective of Agri & Lawn Company is to build long-term relationships with the customers while reducing costs.
The weight of the dimensions is directly connected to the company’s objectives, and this is why Wavelength receives 20 (it is a key factor to creating long-term relationships with the customer) and Cost Management receives 30. They are focusing on their objective while not neglecting the other factors such as Quality and Delivery, which are complementary dimensions to Wavelength, helping the company build strong long-term relationships with their customers.

4. Case for paying price premium: New England Works
Quality: 10
Delivery: 25
Cost Management: 25
Technical Support: 30
Wavelength: 10 100
Case without paying price premium:
Quality: 20
Delivery: 20
Cost Management: 20
Technical Support: 20
Wavelength: 20 100 If I chose to pay a price premium that favors the higher overall rated supplier, like New England Works, I believe that there would be no specific dimension that would appear to be more beneficial to the supply chain, such as higher delivery, technical support or wavelength.

5. Agri & Lawn Company suppliers: New England Works
Quality: 4
Delivery: 4
Cost Management: 3
Technical Support: 4
Wavelength: 4 19/20
= 95%
Midwest Bearings
Quality: 4
Delivery: 2
Cost Management: 4
Technical Support: 2
Wavelength: 3 15/20
= 75%

Difference: 95% - 75% = 20%

As we can see in the table above, if Agri & Lawn Company was considering paying a price premium to the more highly rated supplier, it would have to pay New England Works 20% more than what it