Supplier Selection: Suzo International (UK) Ltd Jessica Lomath.

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Supplier Selection: Suzo International (UK) Ltd Jessica Lomath

Company Overview  Gaming and amusement parts industry  UK Turnover (2011): £7.8m  UK Employees: 28  UK Profit: £  Worldwide Turnover: ~£130m  Worldwide Employees: ~500  Source: FAME database

Products

Kraljic Supply Positioning Matrix Low High Supply risk Leverage items Alternative sources of supply available Substitution possible Bottleneck items Monopolistic market Large entry barriers Routine items Large product variety High logistics complexity Labour intensive Strategic items Critical for product’s cost price Dependence on supplier Competitive bidding System contracting + E-commerce solutions Performance based partnership Secure supply + search for alternatives Supply’s impact on financial results Source: Lecture 7

Supplier Selection Process  Finding new suppliers; varied according to product:  Industry specific  Generic  Supplier evaluation methods:  Categorical  Cost-ratio  Linear averaging  Criteria for supplier selection  Reliability  Delivery  Cost  Quality (e.g. RoHS (Restriction on Hazardous Substances) compliance for electrical goods)

Recommendations  Classify products according to Kraljic matrix  Assign weighting to criteria  Linear-averaging approach for strategic/industry specific items  Categoric method is a cheaper but less effective option  Careful selection for industry-specific items  More integration with Suzo Netherlands

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