ANSWER IN EXCEL:

BUSSCM $1740$ Purchasing & Supply Management

Assignment #$2$

Supplier Performance Evaluation

As Purchasing Manager for a leading manufacturer of high end wireless security monitoring systems,

you've been challenged by VP of Supply Chain to improve the cost and reliability of supply for the core

digital camera device for your company's security systems. Recent complaints from your top customer

has escalated supplier performance as a key strategy for the coming fiscal year. Coming out of a recent

off$-$site strategy meeting, the executive team believes that a key step in the supplier improvement process

will be to more fully evaluate and potentially rationalize the number of suppliers currently supplying the

camera device.

You currently purchase camera devices from four $(4)$ suppliers to ensure competitive pricing. However,

despite the success you've realized in minimizing inflation for these devices and recognition you've

received from your manager, in your last performance review you acknowledged to your manager that the

number of complaints you've been receiving $($formal and informal$)$ has increased notably over the last $6$

months. At the conclusion of your performance review, you and your manager agree that a more robust

evaluation system is needed to more completely evaluate supplier performance and ultimately the true

cost of doing business with them.