Product details

A buyer for Prism Canada, Inc wondered how to outsource the company''s inefficient sheet metal operation. To satisfy current and potential customers'' requests to lower costs for up-coming contract bids, Donna had to decide quickly to whom to outsource and what criteria to use for choosing a supplier. The primary teaching objective is to take students through the supplier selection process, framed in an outsourcing context. Selection criteria, such as price, quality, and reputation and their relative importance will be examined. Other objectives include exploring the issues of implementing an outsourcing decision, keeping in mind employee concerns and union reactions, as well as impact on production operations. The case can be used at the beginning of a principals of buying course as an introduction to source selection.