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Supply Chain Selection of vendors

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Scenario:

The time frame for receiving proposals passed yesterday. You received 10 proposals; 2 sellers (vendors) have not yet responded, but they sent you e-mails yesterday morning telling you that they would have something ready for you within the next week. One of those sellers happens to be the firm that is preferred by Pat who is also the vice president of human resources. The other is a seller that could provide expert services for the intranet update that you have worked with successfully in the past.
You have a meeting tomorrow afternoon with Pat and the decision makers to evaluate the proposals. They are expecting you to have reviewed the seller proposals first and then have a recommendation of a single seller to consider for each part of the project.
You performed a proposal evaluation on the 10 proposals and identified a single excellent seller for each of the source selection criteria that you developed. You are not sure if you should consider the 2 sellers that have not responded, even though they are considered top runners. Describe your decision regarding the inclusion of those sellers.
Should you include them?
Do you include both of them?
Why or why not?
How will Pat respond, and how will you respond to Pat?

382 words

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Solution Preview

1. Should you include them? I don't think that the sellers who failed to provide the proposals on time should be included in your proposal to Pat, regardless of their original preference by your company.

2. Do you include both of them? I do not believe that you should include either of them.

3. Why or why not? The reason that one or both should not be included is that, yes, these vendors may be frontrunners. However, the problem is that your presentation is due the next day. These vendors will not even after ...

Solution Summary

This solution is in response to a scenario provided wherein a determination is assisted in whether or not to include certain vendors.

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Your efforts with Midland Hospital have paid off! The corporation has hired SPI and your staff to provide supply chain management consulting services. Your team has begun analyzing the existing processes, and you've been tasked with developing the purchasing policies and procedures, with focus on ethics in the supply chain.

Remember: from a supply chain management perspective, a company produces services or products. Clearly, Midland Hospital produces a service. This means that sourcing analysis must consider the raw materials necessary for producing this service (e.g., bandages, needles, blood, and medical equipment).

Develop a paper for the hospital management consisting of the following sections:

1. Discuss the importance of identifying the best suppliers by explaining the impact of source selection on supply chain performance.
2. In conjunction with #1, discuss whether the hospital will in-source or outsource its sourcing needs.
3. Develop a high-level ethics policy for the purchasing department at Midland Hospital, identifying general responsibilities and prohibited behaviors.

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