Explain why evaluating suppliers during the sourcing process should be a part of an organization's business model.

Identify and explain what a purchaser$-$supplier relationship is$,$ best practices for establishing purchasing$-$supplier relationships, and the different types of purchaser$-$supplier relationships that can exist in the marketplace.

If you were involved in pre$-$qualifying a strategic supplier for the manufacture of high$-$quality components for use in an aircraft engine, what are five important questions you would want answered in order to evaluate the supplier$$s procurement department? Explain how the information gleaned from the answers to your five questions would assist you to evaluate the supplier's procurement department.

A company is looking for a new supplier of fabric of tents and have tasked you to find a suitable supplier. The company requests that you utilize the $7$ steps of the supplier and selection process to work through how the organization would start the evaluation process. Replicate Chart $4\mathrm{.}17-$Steps of the Supplier and Selection Process in your Assignment A$.$ Record your answers and points on the chart.

Chart $4\mathrm{.}1$: $7-$Steps of the Supplier and Selection Process

Step: Step Description: Answer:

$1.$ Recognize the need for supplier selection. Explain why the company needs a new supplier.

$2.$ Identify key sourcing requirements. What are the key criteria required?

$3.$ Identify the potential supply sources. How is the company going to identify sources?

$4.$ Determine the sourcing strategy. Which type of supplier does your company think is best to work with and why?

$5.$ Limit suppliers in the selection pool. What criteria is most important and how should they narrow the pool?

$6.$ Determine method of supplier evaluation and selection. How is your company going to make a final choice?

$7.$ Select supplier and reach agreement. Why did you select this supplier?

$5.$ One of your major competitors declared bankruptcy. They had severe cash flow problems and many of their contracts were running at a loss. Your Sales Director informs you your company was offered two of your bankrupt competitor$$s contracts. They are yours as long as your organization accepts the work at the current contract prices and terms of your bankrupt competitor.

The value of the work being offered is $$10$ million. This would represent $24$ per cent of your current sales. The Sales Director wants your counsel on a plausible course of action in the current market conditions for the potential clients, prior to him talking to them. Write a report for your Sale Director that summarizes your suggestions. In this report, include the following information:

A$-$ State the course of action you suggest the Sales Director give to the two potential clients.

B$-$ Explain the foundation and reasons for your suggested action.