We already have a star rating system for all of our suppliers. This gives three stars to

Question:

We already have a star rating system for all of our suppliers. This gives three stars to those suppliers who either have a record of success on one of our supply factors or who could achieve the very highest level of performance in our opinion. These are given three stars. At the other end of the scale, some of our suppliers occasionally score no stars for some supply factors if we have had significant problems with them. However, in upgrading all our IT applications, we have had to estimate the capabilities of some suppliers because we have not asked them to take charge of such a big project before. Also, we have had to extend our range of supplier selection factors to include project management skills. We have never used this evaluation criterion before. Table 13.6 shows how we have scored the two suppliers who comprise our short-list for this project. It also shows our estimates of how good they are at each factor of supply and their star rating in that factor.'

(a) Assuming that the information in Table 13.6 is reasonably accurate, which of the two suppliers would you recommend be awarded the contract?

(b) If the company hears news that one of the suppliers (the Super-apps Company) has recently failed on a similar project, how would that affect your recommendations?

Table 13.6 Supplier selection evaluation Supply factor Weight Cost of project Quality of service Quality of