Sourcing and Logistics Functions

Sourcing and Logistics Case Studies
SCMG201 Principles of Supply Chain Management
Student’s Name
Date
Sourcing Case Study
Snedeker Global Cruises
Case Questions
Use your textbook and a minimum of three expert resources (total) from the internet to answer the following questions regarding this case study.
Question 1. Suggest and explain the specific steps Brandt should follow to prepare for the EDP process
Brandt Womack, newly hired supply chain manager at Snedeker Global Cruises, has been assigned to conduct the “E-Auction Development Program” (EDP). The goal of the EDP is to identify potential products that can be purchased through e-auctions and to assess the impact of e-auctions on supplier relationships (Sanders, 2018). Therefore, to prepare for the EDP process, Brandt should follow the following steps:
Research: Research e-auctions and their benefits and drawbacks. Similarly, gather information on the products and services currently purchased by the company, including their sourcing history and supplier relationships.
Assess product suitability: Based on the research and product information gathered, assess which products would be suitable to purchase through e-auctions. Determine factors such as market size, supplier competition, and the impact on quality.
Evaluate suppliers: Evaluate the current supplier base and assess their readiness and ability to participate in e-auctions. Notably, this will help to determine the impact of e-auctions on supplier relationships.
Develop an auction plan: Based on the above steps, develop a detailed plan for conducting the e-auction, including selecting an e-auction platform, auction rules, and criteria for supplier selection.
Communicate with suppliers: To ensure they understand the e-auction process and are ready to participate.
By following these steps, Brandt can ensure that the EDP is well-prepared, organized, and successful.
Question 2. Identify differences between traditional purchasing and use of e-auctions. How can Brandt use these differences to make his selection? What types of items would be best suited for purchase through e-auctions?
Traditional purchasing typically involves a manual process of sending requests for quotes (RFQs) to suppliers and evaluating the responses received. Conversely, e-auctions are conducted online, where suppliers compete in real-time to offer the lowest price for a product or service. Brandt can use the differences between these two methods to make his selection. For example, e-auctions are faster, with prices obtained and a supplier selected within hours or days, while traditional purchasing methods can take longer (McCloud, 2022). E-auctions also offer greater price transparency, as suppliers can see the prices offered by their competitors in real-time, and encourages supplier competition, as suppliers are more likely to offer their best prices to win the business. Commoditized items such as raw materials or indirect goods are well-suited for e-auctions (McCloud, 2022). However, items that require customization or have complex requirements may not be as suitable because the lowest price may not always reflect the best value for the company. Brandt should consider these factors when selecting what items to purchase through e-auctions.
Question 3. Assuming Brandt has identified products to purchase through e-auctions, what steps does he need to take to conduct a successful e-auction?
To conduct a successful e-auction, Brandt would need to take several steps. Firstly, he should identify a reliable e-auction platform that can support the needs of Snedeker Global Cruises. He should also define the rules and regulations of the auction, including the timeline, bidding process, and the criteria for evaluating the bids. Additionally, Brandt should invite potential suppliers to participate in the e-auction, providing them with all the necessary information, such as the product specifications, quantity required, and delivery timeline (Sanders, 2018). To ensure that the auction is transparent and fair, Brandt should establish a set of monitoring procedures, such as real-time bid tracking and monitoring of the bidding process (Baheti, 2022). Besides, Brandt should be prepared to deal with any technical issues that may arise during the auction process and have a contingency plan. Once the auction is completed, Brandt should evaluate the winning bid and negotiate the terms and conditions of the contract with the successful supplier. These steps will ensure that Snedeker Global Cruises can conduct a successful e-auction and obtain the best value for its procurement needs.
Question 4. What negative impact can e-auctions have on supplier relationships, and how can Brandt ensure that they do not occur?
E-auctions can negatively impact supplier relationships in several ways, such as reducing suppliers’ profits, creating price competition that may result in lower-quality products, and undermining suppliers’ trust and confidence in their customers (Tassabehji et al., 2006). Besides, to ensure these negative impacts do not occur, Brandt can take several steps. They include conducting regular communication with suppliers, creating a fair and transparent auction process, ensuring that suppliers understand the benefits of e-auctions, and providing them with support and guidance throughout the process (Tassabehji et al., 2006). Additionally, by establishing clear criteria for selection, such as quality, delivery, and cost, and by being transparent about these criteria to suppliers, Brandt can help to ensure that suppliers feel valued and respected. Furthermore, by considering the long-term impact of e-auctions on supplier relationships and by building strong partnerships with suppliers, Brandt can hel...