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Identifying The Best Suppliers By Their Impact Of Source Selection On Supply Chain Performance.

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.

Solution Preview

1. Discuss the importance of identifying the best suppliers by explaining the impact of source selection on supply chain performance. Please consider the following:

(a) The award decision is based on evaluation factors and significant subfactors that are tailored to the acquisition.

(b) Evaluation factors and significant subfactors must-
(1) Represent the key areas of importance and emphasis to be considered in the Midland Hospital source selection decision; and
(2) Support meaningful comparison and discrimination between and among competing proposals.

(c) Midland Hospital should consider the evaluation factors and significant subfactors that apply to an acquisition and their relative importance, are within the broad discretion of agency acquisition officials, subject to the following requirements:
(1) Price or cost to the Midland Hospital shall be evaluated in every source selection
(2) The quality of the hospital supplies or service shall be addressed in every source selection through consideration of one or more non-cost evaluation factors such as past performance, compliance with solicitation requirements, technical excellence, management capability, personnel qualifications, and prior experience; and Reliability

Kindly think in the following terms:

Reliability
Remember - if suppliers let you down, you may let your patient down.

Quality
The quality of your hospital supplies needs to be consistent - your patients associate poor quality with you, not your suppliers.

Value for money
The lowest price is not always the best value for money. If you want reliability and quality from your suppliers, you'll have to decide how much you're willing to pay for them and the balance you want to strike between cost, reliability, quality and service.

Strong service and clear communication
You need your suppliers to deliver on time, or to be honest and give you plenty of warning if suppliers can't. The best suppliers will want to talk with you regularly to find out what needs you have and how suppliers can serve you better.

Financial security

Midland Hospital need to know that its supplier has sufficiently strong cashflow to deliver when you need them to - it's reassuring to know that suppliers won't disappear overnight. Before Midland Hospital starts a hospital relationship, it's always worth credit-checking potential suppliers. A strong relationship will benefit both sides. You want your suppliers to acknowledge how important your custom is to them, so suppliers make every effort to provide the best service possible. And you're more likely ...

Solution Summary

The solution explains why and how to identify the best suppliers and in-sourcing vs. outsourcing as well as developing a high-level ethics policy for such purchases in 1495 words with many references.

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