Heartland and Company is one of the oldest industrial organizations in the United states of America, the firm specializes in agricultural, construction equipment, and both commercial and consumer lawn care equipment. Many of the final products Heartland and Company produce require the use of bearings, which range in size and purpose for use depending on the product. One specific bearing they require is supplied from New England Works and Midwest Bearings, Heartland and Company purchases and average of 500 000 of these bearings annually. .
Heartland and Company currently has an evaluation system for suppliers that requires revamping, a better method is to establish a weighted-point system where the 5 values would be ranked by 1 being highest importance down to 5 lower importance, and then each value would receive a score allowing all 5 dimensions to add up to a perfect score up to 100. This provides both qualitative and quantitative analysis. .
Heartland and Company is also managing its distribution of business for the part #B02326620 the best method for deciding on business distribution would be to give a higher percentage of the business to the supplier with the higher performance score. Dividing the business is a good option because it ensures that demand can be met for any increase in volume that Heartland and Company might require for the part if there is a jump in sales. An agreement would be formed with both suppliers stating what they require from each supplier to increase their evaluation score and lower costs and supplier development program could be negotiated. .
Heartland and Company must pursue both goals of maintaining annual cost reduction as well as establishing and maintaining long-term supplier relationships simultaneously based on the firm's core values. Easily accessible and open lines of communication must be available for buyers and suppliers to clearly establish their needs.
