SUPPLYCHAINMAN CASE 4

A Supplier Partnering Agreement at the University of Las Vegas

 A Case Study In partial fulfillment of the course requirements For Supply Chain Management Decision Sciences and Innovation Department Ramon V. Del Del Rosario  College of !usiness De "a Salle #niversity

$y% Feli&' (im ). "im*aichong' "eonard S. "una' +erseus Anthony S. +anopio' Arman ,oseph -. Sy' (aye (aye Marineth -. +rof. illy Cuason Instructor 

Table of Contents I.

Summary of Findings

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!a"#ground Information

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III.

Problem Statement

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IV.

Analysis of Alternatives

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V.

%etailed &e"ommendations

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VI.

Ans'er to Case (uestions

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Learning

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II.

VII.

I.

Summary of Findings

Mr. !o$ Ash$y' /ho is a ne/ly hired purchasing director of the #niversity of "as Vegas 0#"V1 is faced /ith a decision' /hether or not to accept the offer of -evada 2ffice Supply Company 0-2SC1. Currently' #"V has around eight suppliers for their general office supplies' 3o/ever' general consensus in their department /ants them to lessen the num$er of suppliers to around 4 /ith 5 of them $eing $ac*ups. 6his can increase efficiency $y lessening the num$er of papers that need to $e filed and the num$er of truc*s coming in and out. -2SC right no/ provides the $est value and already fulfills up to 789 of their office supply demand. 6he partnership agreement is for -2SC to $e the sole supplier of #"V for their office supplies. In return they /ill get a discount of around 78:89 and /ill receive daily deliveries. In addition' -2SC /ould also install soft/are that /ould allo/ individual users to order from them and have it delivered the ne&t day. 3o/ever' the terms of the agreement include that #"V /ould recommend other educational entities in "as Vegas to the same partnership. 6hey /ould also $e a$le to get a 59 re$ate for com$ined purchases that e&ceed ;or  supplier and then t/o $ac*up supplier. 6he proposal of -2SC is >ust an opportunity they /ere presented and they must do their $est to determine if it /ill $e a good opportunity for the company or a hoa&.

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VII. Learning

In order to get the $est suppliers' one company must have 4 suppliers in hold  < ma>or  and 5 $ac*ups. A $idding setup among 4 companies /ill give #"V at the care of Mr. Ash$y to have the $uyer $argaining po/er in terms of cost. A great num$er of suppliers is good $ut is not cost efficient' and in order to increase efficiency it is $etter to pool 4 suppliers and *eep the list of all suppliers as a $ac*up in case of fortuitous events.  Also' every $usiness decision has an effect due to its environmental factors such as government rules and regulations.

B