Purchasing Management Expert (CPME) Strategic Project
The Certified Purchasing Management Expert (CPME) Program requires participants to complete strategic project in order to graduate from the program. This plan is worth 100 points and accounts for 50% of the total grade within the program.
As such, non-submission of this strategic project will result in an automatic failing grade for the CPME program. If you have any questions, please email us at Team@BusinessTraining.com
Once you have completed this project, please send it and your request to take your desired exam date at least 2 weeks before the scheduled exam date using this form: Examination Dates & Scheduling. To schedule yourself for an exam date, this project must be received, completed, at least 2 weeks before the exam date. For example, to take the October 10th exam date, this project must be received (as well as a request to take the exam) no later than September 26th.
You are the purchasing agent for a major company, Product Supply, Inc. Your sales team has just landed a huge contract that would require monthly JIT delivery of finished units to the customer. You have been given the task of selecting a supplier to manufacture the parts that will be needed for production each month. You have received 3 competitive quotes. Below are the three supplier scenarios with their cost, delivery, and a little background on each supplier. For this project you are to make a recommendation of which supplier you will use and tell why. (You are free to use your negotiation skills and any other skills/tactics discussed in the reading, but don’t forget your ethics and social responsibility). Also, tell why you chose not to use the other suppliers. First required delivery is 6 weeks from PO date; all suppliers have agreed they can meet this date.
Supplier #1 – Machine Works, Inc.
Total cost to have parts made by this supplier will be $15,000 which will include freight charges. The supplier is offering a 5% discount if payment is made within 10 days, (5% 10 net 30) of invoicing. Machine Works, Inc. is fairly new to the market and has been in business for 3 years. This would be a good project for this supplier since it will allow them to increase their customer base and revenue. Although, they will have to outsource the painting needed for these parts. This supplier has also expressed concern with having to source material from a metal distributor that requires payment in 15 days (net 15). This plant is located about 250 miles from your facility.
Supplier #2 – Superior Source, LLC
The total cost to have parts made will be $13,000; estimated freight cost is $350. Payment terms are net 30. The supplier has a relationship with a metal distributor that can supply the raw material for this project. This company has the capability to paint the parts internally. There has been a long time relationship between your company and this supplier. The relationship was strained about 6 months ago when this supplier was fined for improperly disposing of hazardous materials. The plant had to shut down for two weeks. Because of this they lost some of their personnel and had to hire new technicians to replace these workers which put their production schedule behind. Because the new personnel experienced a learning curve, the quality has not been at the standard your company was accustomed to. Superior, from time to time, still struggles with quality and delivery. Superior Source is located about 50 miles from your company, so in the event problems arise, you or someone on your staff can be there within an hour.
Supplier # 3 – Sunrise Machine, Inc.
Total cost to have parts made will be $15,000; estimated freight cost will be $550. The supplier does not have capability to paint in-house. Sunrise will have to outsource the painting, but it is with a company they have had a long-standing relationship with. You are fairly familiar with this company since your organization has done a small amount of business with them in the past. They have been in business for many years and have a good reputation in the industry. They do, however, tend to be late on delivery at times. There is no problem with getting the raw material needed; the company has established relationships with many metal suppliers. Sunrise Machine is located about 150 miles from your facility.