Methods involving email, face-to-face, live chat online or via phone should be scheduled regularly. Policies must be clear and evaluation criteria must be easily understood by the supplier to be effective. Cost reduction techniques such as purchasing methods can be utilized to minimize shipping costs and per-unit costs. These decisions can yield expansion and growth if done effectively through coherent and experienced supply chain managers considering all these aspects. .
Introduction.
Heartland and Company was founded in 1875 and is one of the United States oldest industrial organizations. Heartland and Company manufactures agricultural, construction equipment, as well as commercial and consumer lawn care equipment. Heartland and Company spends millions of dollars on bearings to construct their products annually. Heartland and company is a globally involved company in over 100 countries. The firm needs to develop a new way to evaluate their suppliers and reward those who preform and deliver at a high level. They need to maintain their development of long-term supplier relationships as well as develop a method to receive annual cost reductions. Heartland and Company must implement a plan to distribute business for part #B2326620 based on long-term benefits for the firm. .
Issue Statement.
Heartland and Company must first establish a revised version of their supplier evaluation protocol to ensure that there is limited confusion when supplier decisions need to be made. The company is currently faced with a struggle regarding what core elements are of highest importance to Heartland and Company when making supplier decisions. Should price reduction be of highest importance or rather the overall performance of the supplier with regards to quality, communication, on-time delivery, including other non-price aspects. Second in urgency for the firm is to establish clarity on how to manage maintenance of long-term supplier relationships, as well as producing annual cost reductions.
