ccelera by Cummins Case Study $-$ Wayne State University

Lecturer $$ Zhenzhen Yan

Strategic Sourcing Proposal

As a buyer, you are a critical part of meeting Accelera$$s $2024$ goals. The current market has brought

many challenges from price increases, longer lead times, additional freight costs, port delays, as well as

material and labor shortages. It is your job to mitigate the risks while accomplishing your objectives to

meet the $2024$ goals. Each year, you set a strategic plan to meet the next year's savings objectives and

follow through on your programs to meet the current year's goals.

Program: HV Cables

Your current source for high voltage cables, Cables Inc., has come to you with a price increase. Prior to

this notice of a price increase, you have been experiencing significant delivery and commercial issues

with Cables Inc. Not only are you unable to pass this cost increase to your customers, but this increase

may have an impact on your $2024$ and beyond savings pipeline.

With the pricing from the other potential suppliers and current suppliers, you will need to re$-$evaluate

your strategy to determine if your current supplier is still the best for Accelera or if you need to select a

different supplier. Cables Inc. is asking for this increase immediately. The Accelera manufacturing facility

that uses these high$-$voltage cables is in Frankfort, KY and every customer has one cable part number.

You are being tasked with re$-$evaluating your sourcing strategies that ensure continuous supply while

minimizing the cost impact of each part number and satisfying the needs of Accelera$$s internal and

external stakeholders.