Essay About 115.82Supplier Evaluation And Potential Supply Sources

Procurement Strategy
Essay Preview: Procurement Strategy
Report this essay
In the business, liquidity is more important than ever before. As UPS mobile application, customers can from any location, any time to manage their business. It allow customers and follow UPS package delivery to find the nearest UPS service points, and estimated time of delivery and cost, it can help to get the bag faster. In order to further improve the flexibility, UPS mobile site has strengthened the function of tracking and shipping, when customer on the road and it is convenient to use in anywhere.KoreanPATechCarranoNaNaLuckyInitial CostsTooling Costs$1.1 million$1,655,000$2,000,000$1,800,000$1.4 millionPurchase Price CostsTotal Purchasing Price$146,300,000$156,200,000$134,200,000$165,000,000$115,500,000Acquisition CostsOrdering Cost$18,000$7,680$18,000$1,800$18,000Sea Transport$4,235,000-$4,840,000-$4,235,000Land Transport$825,000$748,000$825,000-$825,000Duties, Customs, Tariffs$3,355,000$671,000$3,135,000-$3,245,000Insurance$2,178,000$154,000$2,002,000-$1,729,200Financing Cost$660$384$1320-$660Receival Cost$13200$7,680$26,400$5000$13200Quality CostsQuality Defect Inspections—–Quality Defect Cost$5,720,000$3,520,000$5,280,000$4,180,000$440,000Holding CostsTotal Holding Cost$3,844,132$31,326,356$26,914,194$669,607-Total Costs (over two years)$167,588,992$194,290,100$179,241,914$171,656,407$127,406,060Total Costs (average per unit)$152.35$176,62$162.95$156.05$115.82Supplier Evaluation and Selection ProcessStep 1: Identify requirements for supplier selectionStep 2: Determine key sourcing requirements- Quality- Cost- Delivery Performance- Technological CapabilitiesStep 3: Determine sourcing strategy- Single sourcing vs. multiple sourcing- Domestic supplier vs. international supplierStep 4: Identify potential supply sources- Search intensity is different from the demand, based on the current supplier capacity requirements, and the importance of strategic needsStep 5: Limit suppliers in selection pool- Financial risk analysis – Evaluation of previous performance- Evaluation of supplier provided information