Case Study: The supplier selection process is a critical activity within the operations of a company. Once the outsourcing decision is taken, a process aimed at analyzing and choosing the appropriate suppliers begins.

Suppose that you are a Procurement Analyst in a large company. You have been asked to create a proposal to the Chief Procurement Officer identifying the best supplier to outsource, for a 3-year period, a complex part of your companys value chain. Your company operates in a mature market where the qualifying and winning factors are quality and time to customer respectively.

Based on the information included in the table, address the following questions:

• What supplier would you select?
• What is your rationale for your election?
• What supplier would you select if your companys factors changed to price and quality? Would your election change?

Supplier	Price	Quality	Delivery	Others
A	90	90	95	Overseas supplier (transport lead time 3 weeks)
B	105	100	100	Supplier facing financial issues
C	85	85	95	Proximity supplier (transport lead time 3 hours)

*Figures are expressed in % as follows:

• Price: price quoted by supplier vs. outsourcing company target price
• Quality: parts accepted vs. parts delivered
• Delivery: parts delivered on time vs. parts delivered