Category Analysis and Supplier Selection Project

Course of study: Global Sourcing and Supply Management

Start date: February 17th, 2022

End date: May 5th, 2022

Mission:

The purpose of this project is to give hands-on experience in managing the sourcing and procurement process. I was in a group that established itself as a buying organization for a chocolate company called Treatable.

Our company:

Treatable is a brand-new bakery seeking suppliers for the first time, and because it is all new, our projected demand for chocolate purchasing is moderate. Since a chocolate pastry is not the only item on the menu, Treatable would like to purchase chocolate in bulk because it can last up to 7 months.

Below is a slideshow of a supplier scorecard and analysis:

Supplier analysis:

Our team also conducted a category analysis for our company. As category specialists, we developed product availability and price expertise to ensure the uninterrupted flow of goods at the best price into and through the organization. In addition, we looked at the issues affecting availability and price, such as industry structure, production processes, production capacity, supply & demand, alternatives, and technologies.

Once we defined our category, we created criteria to rate potential suppliers and a supplier scorecard in Excel. We then gathered the data needed to perform a supplier analysis of 5 potential suppliers.

Conclusion:

In the end, we have selected Lindt and Sprungli as our suppliers of chocolate for our business. In these deliberations, our focus was on the company's five important criteria, including critical information regarding the supplier. As a result, we selected Lindt & Sprungli as our supplier of choice because it had the highest overall score of 8.69. In addition, Lindt provides the best quality products at a reasonable price while adhering to our internal sustainability goals. Moreover, they have robust financial health, which keeps us in good stead for a long-term business relationship.