Procurement Strategy
Essay by Ruizhe Peng • June 9, 2016 • Essay • 572 Words (3 Pages) • 1,157 Views
In the business, liquidity is more important than ever before. As UPS mobile application, customers can from any location, any time to manage their business. It allow customers and follow UPS package delivery to find the nearest UPS service points, and estimated time of delivery and cost, it can help to get the bag faster. In order to further improve the flexibility, UPS mobile site has strengthened the function of tracking and shipping, when customer on the road and it is convenient to use in anywhere.
Korean | PATech | Carrano | NaNa | Lucky | |
Initial Costs | |||||
Tooling Costs | $1.1 million | $1,655,000 | $2,000,000 | $1,800,000 | $1.4 million |
Purchase Price Costs | |||||
Total Purchasing Price | $146,300,000 | $156,200,000 | $134,200,000 | $165,000,000 | $115,500,000 |
Acquisition Costs | |||||
Ordering Cost | $18,000 | $7,680 | $18,000 | $1,800 | $18,000 |
Sea Transport | $4,235,000 | - | $4,840,000 | - | $4,235,000 |
Land Transport | $825,000 | $748,000 | $825,000 | - | $825,000 |
Duties, Customs, Tariffs | $3,355,000 | $671,000 | $3,135,000 | - | $3,245,000 |
Insurance | $2,178,000 | $154,000 | $2,002,000 | - | $1,729,200 |
Financing Cost | $660 | $384 | $1320 | - | $660 |
Receival Cost | $13200 | $7,680 | $26,400 | $5000 | $13200 |
Quality Costs | |||||
Quality Defect Inspections | - | - | - | - | - |
Quality Defect Cost | $5,720,000 | $3,520,000 | $5,280,000 | $4,180,000 | $440,000 |
Holding Costs | |||||
Total Holding Cost | $3,844,132 | $31,326,356 | $26,914,194 | $669,607 | - |
Total Costs (over two years) | $167,588,992 | $194,290,100 | $179,241,914 | $171,656,407 | $127,406,060 |
Total Costs (average per unit) | $152.35 | $176,62 | $162.95 | $156.05 | $115.82 |
Supplier Evaluation and Selection Process
Step 1: Identify requirements for supplier selection
Step 2: Determine key sourcing requirements
- Quality
- Cost
- Delivery Performance
- Technological Capabilities
Step 3: Determine sourcing strategy
- Single sourcing vs. multiple sourcing
- Domestic supplier vs. international supplier
Step 4: Identify potential supply sources
- Search intensity is different from the demand, based on the current supplier capacity requirements, and the importance of strategic needs
Step 5: Limit suppliers in selection pool
- Financial risk analysis
- Evaluation of previous performance
- Evaluation of supplier provided information
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