The assignment bellow is based off assignment 1 report that is attached for reference Also attached is the original instructions to assignment 1 for reference. The resources provided as links at the bottom and in the assignment 2 word doc are the only resources to be used. The assignment must include in text citations. The assignment must be written within the scope of the rubric at is also attached.

Assignment #2: Total Cost of Ownership (TCO) Report

Continuing with the information from Assignment #1, develop a balanced scorecard and create a total cost of ownership (TCO) model for the five commodities/materials you need to purchase for your new business. Feel free to make assumptions about the actual performance of each of the suppliers in terms of delivery, price changes, quality issues, etc. For example, you could indicate that your corn leaf supplier delivered on time or slightly early for the first sixth months but has been habitually late for the last six months. Make sure to clearly identify the assumptions you use. Also, rely on the assigned resources as much as possible but you can add other resources that you find helpful. Feel free to include diagrams to illustrate your scorecard or model. These diagrams do not count toward to your page length requirement. Your paper should be two to three pages, double-spaced, 12-point font, one-inch margins.

Required Formatting of Assignment #2:

The TCO should be double spaced, 12-point font, and two to three pages in length excluding the title page and reference page.

Third person writing is required. Third person means that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing). If uncertain how to write in the third person, view this link: http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person.

Contractions are not used in business writing, so you are expected NOT to use contractions in writing this assignment.

Title page

Use headings to help organize the paper

Use APA formatting for in-text citations and reference page. You are expected to paraphrase and not use quotes. Deductions will be taken when quotes are used and found to be unnecessary.

The expectation is that you provide a robust use of the course readings. No other books besides the course eBook can be used. When using a source document, the expectation is that the information is cited and referenced with a page or paragraph number. 

Resources:

http://www.bearingpoint.com/en-nl/download/Spend_Mgmt_WP_FI_8p
https://learn.umuc.edu/content/enforced/262004-001039-01-2182-OL4-7980/Total%20Cost%20of%20Ownership%20Tutorial ?_&d2lSessionVal=H8I2DgoTEo3pjtI6HcTsXAbGs

https://www.digikey.com/en/articles/techzone/2013/jul/5-reasons-to-use-total-cost-of-ownership

https://www.bsr.org/our-insights/blog-view/what-total-cost-of-ownership-offers-sustainable-procurement

http://www.rpaycompany.com/industry/pdf/Negotiating_on_Cost_Not_Price

https://www.inddist.com/operations/blog/13764451/supplier-performance-scorecards-supplier-stratification-part-2

https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2

Running head: SUPPLIER SELECTION REPORT 1

SUPPLIER SELECTION REPORT 5

Supplier Selection Report

Zachary T. Trigger

UMCG

Purchasing Management

Professor James Swaim

February 2, 2020

The criteria for the selection of suppliers has significantly changed over the years. In the past, price was utilized as the primary criteria for the selection of suppliers together with location and preferences. However, there has been a greater emphasis on food safety and quality hence the need to improve on the quality of raw materials supplied. Choosing the right suppliers can help an organization to meet and supersede the set regulatory standards while increasing consumer demand and building the brand reputation. The supplier that is chosen has to be able to deliver quality and safe ingredients which will translate to quality and safe end products for the consumer (Eldridge, 2012).

Identifying the appropriate supplier is a costly affair but has significant results if done in the correct manner. The opinions of the stakeholders are sought to determine the appropriate criteria to follow in selecting a supplier. Some of the stakeholders include members of the research and development, processing, quality assurance, marketing and purchasing among others. After the identification of the appropriate criteria potential suppliers are identified and their capabilities and pricing is compared. This stage involves working with the potential suppliers and maintaining open communication where the manufacturer explains to the supplier the manufacturing process. While cost is a significant driver, value is paramount and it should be key in selecting the appropriate supplier. Some of the factors which contribute towards value include delivery commitments, responsiveness and reliability, hard and soft resource savings and customer service (Eldridge, 2012).

The raw materials that are being sought are highly perishable and one criteria for the supplier is that it should be able to reach the company in a fresh state. This should be one of the factors to look for when sourcing for the supplier. Because of the sensitive nature of the raw materials that are required, it is paramount that the supplier is able to assure of the quality of the raw materials they will be supplying. For example, the supplier for hearts from pigs should have a pig farm rather than outsourcing from another farm. This way, they are able to raise the pigs to standard and consequently they will have good quantity hearts to serve the purpose aimed at by the company. This is carried out on all of the other required raw materials.

Before signing the contact, there is need to carry out an audit on the suppliers to determine whether or not they have the capacity to deliver. The audit is carried out to enable the determination of whether the supplier is compliant or has some significant compliance or quality system failures. These shortcomings have a significant impact on the supplier’s capability to produce top quality products. This procedure is carried out on the best suited supplier since it is a costly process and it aims at protecting the manufacturers from contracting a supplier that may be good in the books but this does not match the actual situation of the company. The audit also aims at helping the company to understand the weaknesses and strengths of the supplier before the relationship is made official. Therefore, by carrying out an audit of the suppliers, the company is able to determine the capability of the supplier to meet the company’s requirements (Assemblymag, 2001).

Evaluating the performance of a supplier is important to grade them and determine whether or not the partnership will continue. Evaluation can be carried out through a self-assessment questionnaire by the suppliers. This helps the supplier to identify any existing gaps ad take the appropriate measures towards covering them. It also helps the company to understand how the supplier understands its operations and whether or not they are willing to make improvements on existing discrepancies. The company should also set up appropriate metrics with which the measurement of performance can be carried out. Some of the metrics which can be used include lots that are rejected, documentation errors and perfect shipments among many others. The metrics allows for the categorization of the supplier as either full partner, associate partner, high risk or incapable. A full partner is a supplier that has been able to meet all the company’s expectations and can be trusted to supply quality raw materials to the manufacturer. An associate partner is a supplier that falls short of the expectations and needs to put in more effort so as to attain the status of a full partner. High risk supplier is utilized for current production but it is advised not to award them with future business. An incapable supplier does not meet the needs of the manufacturer and hence they should be let go as soon as possible. These categorizations help the company to know which supplier they need to replace and which one they need to retain. It plays a significant role in the continuous process of assuring quality in the raw materials that they are supplied with (Assemblymag, 2001).

Establishing long term supplier relationships has many advantages on the company. It leads to a reduction is costs since there is a significant amount of resources that is associated with searching for a supplier including months of determining the appropriate one and setting up a relationship with them. With long term suppliers, there is an increase in communication and efficiency hence a smooth operation unlike in instances where the supplier is regularly changed. With the long term relationship, there is also room for continued improvement and the supplier is able to better understand the needs of the manufacturer and hence they are able to satisfy them better (Figues, 2020). Long term suppliers are those that have been able to achieve the metrics of full partnership and the two entities have been able to establish a level of trust and by working together, the company has been able to achieve and supersede the required quality.

References

Assemblymag. (2001). Retrieved 2 February 2020, from

https://www.assemblymag.com/articles/82672-how-to-evaluate-suppliers

Eldridge, B. (2012). Supplier Management: Six Steps to Selecting the Right Supplier. Retrieved 2 February 2020, from

https://www.foodsafetymagazine.com/magazine-archive1/augustseptember-2012/supplier-management-six-steps-to-selecting-the-right-supplier/

Figues, R. (2020). Retrieved 2 February 2020, from

http://www.academia.edu/8304256/CHAPTER_4_QUALITY_IN_CUSTOMER_SUPLLIER_RELATIONSHIPS

The assignment bellow is based off assignment 1 report that is attached for reference Also attached is the original instructions to assignment 1 for reference. The resources provided as links at the bottom and in the assignment 2 word doc are the only resources to be used. The assignment must include in text citations. The assignment must be written within the scope of the rubric at is also attached.

Assignment #2: Total Cost of Ownership (TCO) Report

Continuing with the information from Assignment #1, develop a balanced scorecard and create a total cost of ownership (TCO) model for the five commodities/materials you need to purchase for your new business. Feel free to make assumptions about the actual performance of each of the suppliers in terms of delivery, price changes, quality issues, etc. For example, you could indicate that your corn leaf supplier delivered on time or slightly early for the first sixth months but has been habitually late for the last six months. Make sure to clearly identify the assumptions you use. Also, rely on the assigned resources as much as possible but you can add other resources that you find helpful. Feel free to include diagrams to illustrate your scorecard or model. These diagrams do not count toward to your page length requirement. Your paper should be two to three pages, double-spaced, 12-point font, one-inch margins.

Required Formatting of Assignment #2:

The TCO should be double spaced, 12-point font, and two to three pages in length excluding the title page and reference page.

Third person writing is required. Third person means that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing). If uncertain how to write in the third person, view this link: http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person.

Contractions are not used in business writing, so you are expected NOT to use contractions in writing this assignment.

Title page

Use headings to help organize the paper

Use APA formatting for in-text citations and reference page. You are expected to paraphrase and not use quotes. Deductions will be taken when quotes are used and found to be unnecessary.

The expectation is that you provide a robust use of the course readings. No other books besides the course eBook can be used. When using a source document, the expectation is that the information is cited and referenced with a page or paragraph number.

Resources:

http://www.bearingpoint.com/en-nl/download/Spend_Mgmt_WP_FI_8p

https://learn.umuc.edu/content/enforced/262004-001039-01-2182-OL4-7980/Total%20Cost%20of%20Ownership%20Tutorial ?_&d2lSessionVal=H8I2DgoTEo3pjtI6HcTsXAbGs

https://www.digikey.com/en/articles/techzone/2013/jul/5-reasons-to-use-total-cost-of-ownership

https://www.bsr.org/our-insights/blog-view/what-total-cost-of-ownership-offers-sustainable-procurement

http://www.rpaycompany.com/industry/pdf/Negotiating_on_Cost_Not_Price

https://www.inddist.com/operations/blog/13764451/supplier-performance-scorecards-supplier-stratification-part-2

https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2

2/6/2020 Rubric Assessment – BMGT 375 6380 Purchasing Management (2202) – UMGC Learning Management Syste

m

https://learn.umuc.edu/d2l/lms/competencies/rubric/rubrics_assessment_results.d2l?ou=487048&evalObjectId=921356&evalObjectType=1&userId=173587&viewTypeId=3&rubricId=881950&groupId=0… 1/4

Criteria Outstanding Superior Good Substandard

Fa

Creation

of

Balanced

Scorecard

wi

th

assumptions

Creation of

5 points

Formatting and

development of Scorecard

was

correct and

comprehensively explained.

Each

element of the card

defined the assumptions

made to

evaluate the

performance. Conclusions

drawn

reflected a highly

accomplished level of

analysis, synthesis,

evaluation and reasoning of

the case material and case

study

facts resulting

in

accurate, thorough, and

soundly

reasoned

conclusions

(4.5-5.0)

4.25 points

Formatting and

development of

Scorecard

was correct

and explained. Each

element of the card

defined the

assumptions made

to

evaluate

performance.

Conclusions drawn

reflected a good lev

el

of analysis, synthesis,

evaluation and

reasoning of the case

material and case study

facts resulting in

accurate, and logically

reasoned

conclusions. However,

development of one

or

two elements and or

assumptions we

re

not fully explained or

inaccurate.

(4.0-4.499)

3.75 points

Scorecard

w

as

crated and all

elements were

present.

Comments identified

elements

and assumptions

made for

performance of each

supplier. Scorecard

was created but had

3-4 mistakes.

Comments reflect a

satisfactory level of

analysis, synthesis,
evaluation and

reasoning of the

case material and

case study facts

resulting in partially

correct conclusions

that lack

development or

detail. Comments

tend to be

overbroad.

(3.5-3.999)

3.25 points

Attempt was made to

make a completed

scorecard. Scorecard

was

mostly inaccurate and

assumptions reflected

minimal analysis,

synthesis, evaluation

and reasoning of the

case material and

case study facts,

(3.0-3.499)

0

Sc

at

el
in

su

ju

th

Co

m

sy

an

ca

st

fa

co

(0

5 points 4.25 points 3.75 points 3.25 points 0

2/6/2020 Rubric Assessment – BMGT 375 6380 Purchasing Management (2202) – UMGC Learning Management System

https://learn.umuc.edu/d2l/lms/competencies/rubric/rubrics_assessment_results.d2l?ou=487048&evalObjectId=921356&evalObjectType=1&userId=173587&viewTypeId=3&rubricId=881950&groupId=0… 2/4

TCO model

Attention to

Instructions

Formatting and

development of TCO was

correct and
comprehensively explained.

Each element of the model

was defined the

assumptions made to

evaluate the performance.

Conclusions drawn
reflected a highly
accomplished level of
analysis, synthesis,
evaluation and reasoning of
the case material and case

study facts resulting in

accurate, thorough, and

soundly reasoned

conclusions
(4.5-5.0)
Formatting and

development of model

was correct

and explained. Each

element of the card
defined the
assumptions made to
evaluate the
performance.
Conclusions drawn

reflected a level of

analysis, synthesis,
evaluation and
reasoning of the case
material and case study
facts resulting in

accurate, and soundly

reasoned conclusions

for each of the model

elements. Justification

for the reasoning was

for the most part good

but one or two of the

model step were not

detailed enough.

(4.0-4.499)

Comments generally

identify and explain

the model steps.

Comments reflect a
satisfactory level of
analysis, synthesis,
evaluation and
reasoning of the
case material and

case study facts.

However some step

application

conclusions were in

partially correct and

or the conclusions

reflected a lack

development or

detailed

reasoning Comments

tend to be
overbroad.
(3.5-3.999)

Comments only

minimally identify

and explain the

model elements. The

level of analysis,

synthesis, evaluation
and reasoning of the
case material and
case study facts

however, was

inadequate due to

lack of supporting

class material and

case study facts.
(3.0-3.499)
Co
to

ex

m
or

ev

re
m
st

dr

(0

2 points

Demonstrates exceptional

understanding of

requirements responding

completely to each aspect

of assignment

including

minor aspects of the

assignment such as using

1.7 points

Demonstrates

excellent

understanding of

requirements; missed

one minor aspect of

assignment.

(1.6-1.799)

1.5 points

Demonstrates

satisfactory

understanding of

requirements;

missed a key

element or two

1.3 points

Fails to show a firm

understanding of
requirements; missed

two key elements or

several minor aspects

of assignment

(1.2-1.399)

0
Fa

un

as
re
(0

2/6/2020 Rubric Assessment – BMGT 375 6380 Purchasing Management (2202) – UMGC Learning Management System

https://learn.umuc.edu/d2l/lms/competencies/rubric/rubrics_assessment_results.d2l?ou=487048&evalObjectId=921356&evalObjectType=1&userId=173587&viewTypeId=3&rubricId=881950&groupId=0… 3/4

Writing

Mechanics

Adherence

to APA

Style (6th

ed.)

third person writing,

required use of course

readings, and assignment

format.

(1.8-2.0)

minor aspects of

assignment.

(1.4-1.599)

1.5 points

Strictly

adheres to standard

usage rules of written

English, including but not

limited to

capitalization,

punctuation, run-on

sentences, missing or extra

words, stylistic errors,

spelling and grammatical

errors. No errors found.

No

contractions or jargon used.

(1.35 – 1.5)

1.28 points

Excellently adheres to

standard usage of

mechanics:

conventions of written

English, including

capitalization,

punctuation, and

spelling. One to three

errors found.

(1.2 – 1.34)

1.13 points

Satisfactorily

adheres to standard

usage rules of

mechanics:

conventions of

English, including
capitalization,
punctuation, and

spelling. Four to 10

errors found.

(1.05 – 1.19)

0.98 points

Minimally adheres to

standard usage rules

of mechanics:

conventions of

written English,

including
capitalization,
punctuation, and

spelling. More than

10 errors found.

(0.9 – 1.04)

0.

Do

st
of
co

En

in

er

to
(0
1.5 points

No APA style or usage

errors; Proper citation of

source material is used

throughout paper;

Reference titles follow APA

with only the first word, the

first word after a colon and

proper nouns capitalized.

(1.35 – 1.5)
1.28 points

Attempts in-text

citations and reference

list but one or two APA

style errors noted or

fails to use APA

citations when

appropriate 1-2 times.

(1.2 – 1.34)
1.13 points
Attempts in-text

citations and

reference lists; APA

style errors are

noted throughout

document; Fails to

use

APA citations

when appropriate 3

times in

document.

(1.05 – 1.19)
0.98 points
Attempts in-text
citations and

reference lists; Fails

to use APA citation

when appropriate 4-5

times; or presents

only 1-2 in-text

citations and

reference list in a

paper that requires

APA citations

throughout the

document.
(0.9 – 1.04)
0
No
st

ei

or

om

(0

2/6/2020 Rubric Assessment – BMGT 375 6380 Purchasing Management (2202) – UMGC Learning Management System

https://learn.umuc.edu/d2l/lms/competencies/rubric/rubrics_assessment_results.d2l?ou=487048&evalObjectId=921356&evalObjectType=1&userId=173587&viewTypeId=3&rubricId=881950&groupId=0… 4/4

Total / 15

Overall Score

Close

Outstanding
13.5 points minimum

Superior
12 points minimum

Good
10.5 points minimum

Substandard
9 points minimum

Failure
0 points minimum

Only the resources provided in the links bellow may be used in writing this assignment.

Supplier Selection Report

Assume you are chief executive officer (CEO) of a company that will develop products used in laboratory testing. Together with your chief science officer (CSO), you will need to develop a supplier base to deliver the following materials:

· Muscles from turkey legs

· Hearts from pigs

· Alligator claws

· Corn leaves

· Kelp from Chesapeake Bay

These materials must be purchased in raw form as personnel at your company will process the materials in a proprietary way based on customer requirements for your products. Describe how you will (a) locate suppliers who can provide these materials reliably and in high volumes, (b) assess the potential suppliers’ capabilities to meet your requirements, (c) determine the evaluative criteria for the suppliers once they begin to deliver. Also, discuss the benefits and costs of buying from multiple suppliers or establishing a contract for long-term supply. Make sure you rely on resources from the first three weeks of the class.

Required Formatting of Assignment #1:

This report should be double spaced, 12-point font, and three to four pages in length excluding the title page and reference page

Third person writing is required. Third person means that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing). If uncertain how to write in the third person, view this link: http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person.

Contractions are not used in business writing, so you are expected NOT to use contractions in writing this assignment.

Title page

Use headings to help organize the paper

Use APA formatting for in-text citations and reference page. You are expected to paraphrase and not use quotes. Deductions will be taken when quotes are used and found to be unnecessary.

The expectation is that you provide a robust use of the course readings. No other books besides the course eBook can be used. When using a source document, the expectation is that the information is cited and referenced with a page or paragraph number.

Resources:

https://procurementmanagement.pressbooks.com/chapter/supplier-selection-and-evaluation/

https://www.associationforum.org/mainsite/browse/professional-practice-statements/performance-measurement-metrics

http://www.mindtools.com/pages/article/10-cs.htm

https://www.assemblymag.com/articles/82672-how-to-evaluate-suppliers

https://www.instituteforsupplymanagement.org/files/Pubs/Proceedings/BBFedeleDolan

http://www.foodsafetymagazine.com/magazine-archive1/augustseptember-2012/supplier-management-six-steps-to-selecting-the-right-supplier/

http://www-personal.umich.edu/~dbeil/Supplier_Selection_Beil-EORMS

http://www.infoentrepreneurs.org/en/guides/supplier-selection-process/

https://waset.org/publications/16944/supplier-selection-criteria-and-methods-in-supply-chains-a-review

http://www.academia.edu/8304256/CHAPTER_4_QUALITY_IN_CUSTOMER_SUPLLIER_RELATIONSHIPS

https://www.entrepreneur.com/article/205868

Introduction and Implementation of Total Quality Management (TQM)

https://highered.mheducation.com/sites/dl/free/0078024110/1009617/ben24110_ch01_001_024