Case: Managing suppliers at FaastLane Ltd
Requirements:
1. Prepare a report for management comparing the two suppliers in which you:
a. Provide a detailed supplier cost analysis and calculate the supplier performance index (SPI);
b. Identify the key drivers of SPI - that is, the factors to which SPI is more responsive to;
c. Consider the various criteria used by FaastLane to evaluate suppliers and for each criterion propose two performance measures that the company might use to evaluate suppliers' performance.
d. Evaluation of the current situation and advise whether contracts should be renewed with I-Pot Exhausts and Chroma Manufacturers;
2. Drawing on your analysis above, but not limited by it, make a set of appropriately justified recommendations to management regarding ways of managing suppliers that would be beneficial to the company.
3. Discuss how accounting and performance measurement systems may create challenges to supplier management. What recommendations would you make to their design to enable effective supplier management?
Attachment:- Case.rar