Report Components

QuestionThe content of the Sourcing Report should be divided into the sections corresponding to the

“Report Components” shown below

1. Title Page

2. Executive Summary

Note: Not to exceed 1 page single spaced 12 point font

1. Student is to realize that the bottom line is what the Executive team is looking for.

Their expectation from you is that you did your due diligence.

In the summary you will explain the:

o STRATEGIC FIT – Quality-Cost and Delivery

o How this decision helps us achieve current CORPORATE OBJECTIVES

o Allows us to meet BUDGET and MARGIN requirements

2. Any Critical Data and a Final Recommendation

Note now of any known issues that can impact the company in the future.

Milestone and Timeline of activities

i. Internal

ii. External

Sources of Supply

i. Outline an interview of prospective suppliers including activities that will lead to a good decision

ii. Check References

– Understand testimonials

Visit Plants and Distribution Centers to access their true capabilities

– Review their Quality Standards

– Access Management Skills and Experience

– Review basic Financials

– Review Quality Programs

– Review their Operations and Technology

Supplier Evaluation Criteria and scoring Matrix (Develop this as a table)

– Capability

– Machinery, Labor , Knowledge

– Financial Standing

– Capacity and hours of operation

– Location of transportation and labor to facility

– Testing Capabilities

– Storage – Warehouse

Quote Submission

Your Quote Format can be fictitious but it must include several elements

– Spec

– Volume

– Terms and Conditions

– Confidentiality

– Title Transfer

– Warranty

Target price (if you chose to share this)

Dates

– Due date of Quote

– Due date of Samples

– Production shipping deadline

– Date of Production

Supplier Quote should contain all of the above, plus

– Price

– Discounts

– Packaging

– Any other Terms and Conditions

– Lead-times

– Production Lot size and quantity breaks

– Any special handling needed

Supplier Selection and Product Acquisition

– Completeness of Quality, Cost and Delivery

– Certifications and Practices

– Agreements on Price of Cost adjustments due to Raw Materials and Currency

Preliminary Award

– Must produce sample parts off of a production process

– Submit parts to the Buyers Company Quality group for validation of Specification

– Notify the Vendor of any nonconformities if they exist (up to the student if they want to purse

this)

– Action plan if there are nonconformities

Award the business

– Finalize transportation and Packaging

– Finalize Import Legal Documentation

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