Question

Assignment:

Your organization has made a strategic decision to outsourcework currently performed in house. You have been assigned the responsibility to ensure the contracted supplier meets your organization’s requirements for supplying parts/products or services (you choose) and is a viable long-term partner. Develop a program/plan/criterion you will use to evaluate whether the supplier can meet your exacting requirements. Keep in mind, your organization is the customer in the assignment.

If you are bulleting information, it is wise to elaborate on the bullet item so there is no misunderstanding by the targeted supplier.

Answer 1

Plan or criterion to choose the supplier:-

1. Organisation's main plot of work:- The supplier core work which it is indulge in must get analysed properly. It should match with the work you need to outsource.

2. Organisation's experience:- It is said that more the experience, more specialized that organisation will be in that particular work. Therefore experience does matter when it comes to outsourcing the work. It develops trust in the company.

3. Price:- Price which we are offering and price that they are agreeing upon should also get match. The price set should be fair and according to the market price or work outsourced.

4. Time Constraints:- Time limit is the major point that needs to be taken under account. In what time the other organisation will provide the work to us is also important. For eg. If a company with an experience of 2-3 years will complete the work in 2-3 months whereas the same work will get completed by another company, having an experience of 5-7 years, in 4-5 months then it is better to outsource the work to less experienced company because here we are limited with the time.

5. Terms & Conditions:- The terms & conditions of both the companies should be favorable. The T&C's should get cleared by the companies before fixing the deal.

6. Past Projects:- The past projects can also help company in determining whether this organisation had any failed project or work and if yes, why? This can help the organisation in making better decision.