Selection of the supplier for a property company "North Eastern Property Managers", Supplier selection process in purchasing

Essay by DADUUniversity, Master'sA, January 2009

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In this research paper, we are told to make a "selection" of the plumbing items supplier for a property company named "North Eastern Property Managers" (NEPM), the property companies main functions are assumed as "fixing and installing the plumbing part of the property only" in this paperwork.

NEPM has spent over 400,000 a year for the purchase of various kinds of plumbing supplies such as: pipes, tees, elbows, and many small plumbing repair parts, and a few amounts of expensive items as, large valves and water heaters. Out of this 400,000 GBP, NEPM has items leftover worth to 240,000 GBP plumbing supplies in its stores system.

The purchasing department has recently taken to Dan Summerfield as a director, and he wants to reduce the current annual loss of 160,000 GBP by switching current four suppliers into one idol supplier. He believes it can save money by getting lower price and by reducing inventory level.

Therefore, he wants to choose the idol supplier by considering the managerial, technical, and financial capabilities in relation to the benefits of making long term (one year, at least) contract with selected supplier.

According to the basic and primary selection of Mr.Summerfield was the distance from NEPM, and there are 2 big suppliers within 15 miles and an individual small suppliers market out of 3 suppliers, that can be evaluated for further selection procession.

They are Mee Plumbing Supplies, "an old" styled family company (I call it as: "An old beauty"), Ace "a modern" company with lots of skilled young specialists, with just 10 years of success story, within long terms of production, but has been growing rapidly for the last 10 years, which we can call it "Attractive but Hard to ground", and the small individual suppliers, which has an excellent "personal"...