PQI: Management of Suppliers Harvard Case Solution & Analysis

Implementation Plan

The plan of implementation is not difficult as the company needs to take the above-mentioned recommendations simultaneously. First of all the company needs to address the issues with the managers involved in selecting the suppliers and the ones involved in the evaluation process. Take the feedback from the managers and establish a team with the responsibility to communicate the results of the evaluation to the suppliers one by one. The team assigned with the task should firstly fix a meeting with the suppliers, secondly those meetings should be separately held with one supplier in a day to discuss the concerning issues with them. The team should not only address the issues, but also take feedback from the suppliers and clearly address the concerning issues, and entertain the questions that suppliers have.

The team task is to take the suppliers with confidence and make them realize that the company is willing to establish a long-term relation with them, but the results of the evaluation are not favoring the current situation and they need improvement in the future. The reviews and remarks of the suppliers from these sessions should be assessed and viewed clearly to take a guide in improving the evaluation process. The evaluation process should then be innovated by implementing the recommended changes above or any other changes that the suppliers have suggested.

As a next step, a new evaluation team should be made in a way that it contains members from all the departments that are involved or linked to the suppliers by any means.The task of the new team is to assess the view of the suppliers and the current and previous performance of the evaluation process. On the basis of their assessment, implement the suggested recommendations in the evaluation process. The additional task the team should be given is making the final decision in selecting suppliers.

The team should then plan, and develop the changes in light of the suggested recommendations and then clearly implement the change in the evaluation process. The steps in the implementation can be changed by the managers, according to their comfort the team can add any additional steps, but the suggested steps guide the managers in adapting and implementing the change in a clear manner.

Analysis of Recommendations

Using a more quantitative approach in evaluating the suppliers will help the company in evaluating each supplier in broad terms. Also, the suppliers will not be analyzed on the same scale depending on their capabilities. This approach will help the company in selecting the suppliers easily.. For example, if a company wants a cost effective supplier the company will consider cost effective suppliers. The suppliers will be categorized as cost effective and responsive while quality and technological capabilities should be analyzed on the same scale for all the suppliers with an additional factor of relationship with a supplier. This approach is more complex,it is not easy to adopt and may not be as effective as the company is expecting but it is beneficial for a long run. The suppliers will be assessed in more categories and will give the company an ease in making a decision regarding the selection of the suppliers through keeping the feature of importance for the company in mind.

On the other hand sharing the results with the suppliers is a risk. The risk involves, damaging the relationship with the suppliers and making the core competencies of the company visible to the suppliers. The suppliers can use the competencies and imitate them and enter the market and become a threat as a competitor. On the contrary, the company also enjoys long term benefits of using this approach. By sharing the results and gaining, feedback will help in creating a stronger and mutual relationship between suppliers and company. The suppliers will be instructed regarding the factors that are important for PQI that will guide them to deliver accordingly and this way it will reduce the risk.  This approach will create a new value for the company in the form of suppliers and will involve them in contributing towards the growth and success of the company. Also, the interaction with the suppliers will motivate them to work according to the requirements of the PQI. The suppliers will also become part of the company’s ultimate strategy and will deliver according to the expectations of the company...................................

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