Assignments should be typed, 11-point font size (Times Roman or similar) double spaced with a 2.5 cm margin on both sides of the page with the page size specified as ‘Letter’.
Narrative demonstrates:
§ Clear and concise response to the question (examples welcome)
§ Clear illustrations are provided (if applicable)
§ Clear and concise concept learning acquired is demonstrated
§ Writing is supported with clear original thought
§ All supporting ideas are referenced
General:
§ Breadth of relevant observation and research, demonstrate sound knowledge for the concepts being referenced.
§ Presentation of report: structure, clarity of writing, referencing and bibliography as applicable.
PART 1 (15 marks Total)
Purchasing Styles, there are 2 very distinct purchasing styles today. One is Public Sector Government based known as the Broader Public Purchasing System and the other Private-Corporate Shareholder based Purchasing system.
Question1 (6 marks) You were exposed to the Ontario Government Broader Public Purchasing process. Outline the “challenges” with your rationale associated with the Government Purchasing Process (BPS)?
Question 2 (6 marks) You were exposed to the private sector organizations such as Amazon and Air Canada. Outline advantages and disadvantages of the Purchasing system and flexible rules that would exist in those organizations?
Question 3 (3 marks) If you had a choice and two (2) Purchasing job offers at the same time, one Private Purchasing and one Government Purchasing which one would you choose? Outline thoughts, rationale as to your personal alignment and explain Why?
Part 2. (15 marks Total)
When putting out an RFP and evaluating supplier responses a rating matrix is used to tabulate scores. A base criterion is identified and used to ensure the company core competencies are at minimum maintained or enhanced.
Scenario: You are the Purchasing Manager at a pet product producing company. Your Company just completed your 15-year anniversary and are in the top 3 recognized sustainable pet product producers across Canada.
Due to your company success and retail growth (plus on-line ecommerce growth) you are unable to keep up with now 24/7 delivery needs and have decided to outsource your deliveries. By outsourcing deliveries this will allow more time for your company staff team to focus on their leading products and their development.
You have narrowed to 3 vendors who have submitted their quotes and services and are ready for further evaluation:
One is “Purolator” (5,000 plus vehicles across Canada in business 55 years (owned by Canada Post).
Second is a private business called “Best Delivery Broker Services” in business 2 years with access to multiple delivery vehicles and has software to match vehicles to needs on an added per fee basis.
Third is a family-owned business “Jack and Jill’s On-Line Delivery Service”, 6 months in business and ready to invest in vehicles and if they have a signed contract from you which they would use to support requirements for adding additional capital with and from Bank negotiations.
Question 1 (6 marks) Create an RFP evaluation rating matrix, identify at least 6 key evaluation criteria you will require and provide a % value rating for each of your criteria that reflect aligned to your organization’s core competencies (based on total 100% evaluation criteria)
Question 2 (6 marks) Using your 6 criteria rate the above 3 vendors (your totals) which will support your ultimate decision (show your calculations all based on your 6 rating criteria).
Question 3 (3 marks) Who would you select? Add a brief rationale as to Why?
Part 3. (10 marks Total)
Strategic sourcing is a key value add that Purchasing people can provide to their company. As mentioned in class when going for interviews in Purchasing, knowledge of this concept will be a key differentiator for you to outline the merits with examples as to the ability to differentiate between strategic versus non-strategic/routine sourcing.
Scenario: You are in purchasing at a IT hardware producing company. Your role is to source-purchase parts for products manufactured in-house such as laptop accessories, hard drives, IT based security devices which will be sold both in retail and online (ecommerce). Your company has decided to shift production of its most popular laptop cases with 100% sustainable and recycled material. This is a very strategic shift considering laptop cases have been one of the top sellers and going into a fully sustainable product means likely sourcing new suppliers for the components. The estimated price point for the new laptop cases would be $10.00 to manufacture and sell for $20.00 Sales are ramping up as you are this unique product supplier in the marketplace. Sales on previous laptop cases are currently running at 3,000 a month. The future forecast is for each month to grow by plus 500 a month (3,500 new monthly total) for the next 12 months at least.
You have decided to confirm with your existing supplier (s) first as to whether they can meet the requirements for supplying recycled components or you will have to go out to market to secure new suppliers to quote as to their ability to meet new demand increases (plus 500 units a month, starting in 3 months (day 1 month 4) for at least a year’s supply).
Question 1 (6 Marks) Outline Purchasing steps you would take in terms of who would you consult with from within your organization to prepare and execute on this supply change? What are the key considerations you would be looking from each person/group? Outline the value add in terms of the Profit Leverage Effect on behalf of your organization.
Question 2 (4 marks) Outline some of the sustainable requirements the existing and or new suppliers would have to demonstrate for the material components? What sustainable considerations would you be asking your suppliers should your organization grow its product lines into more sustainable materials?
Part 4 (10 marks Total)
Supplier Relationship
Management is a key role for Purchasing, as we have learned with organizations such as Canada Post and Microsoft. To this end in this Module we learned the importance of KPI’s (Key Performance Indicators) and how they are to be mutually agreed with measures provided monthly to your attention from the supplier.
Scenario: Assume that your company (Home Hardware parts) has just set up a contract with “Reliable Courier” for pick up and deliveries at your company and the volumes are in the range of 30-40 daily (in and out basis) Monday to Friday 09:00-5:00 pm, Special rush shipments after hours and weekends are available (part of the contract) with prior approval (name, date and time) & full supporting documentation required. As agreed in the contract within 3 hours of after hours’ notice to Reliable Courier the delivery will have taken place.
Question 1 (6 marks) Outline 6 (KPI’s) Key Performance Indicators you would expect on a monthly basis?
Question 2 (4 marks) Outline any other feedback you would welcome from “Reliable Courier” on a Monthly basis? (feel free to outline examples).