Notesale: Turn your study into money

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What comes next?
SWOT analysis
Categorise the appraised suppliers
Record the assessments
Review the outcome
with suppliers
Determine what you can do to further develop
or motivate certain key suppliers
Update your overall assessment of the level of
supply risk
ITC

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2-1

SWOT Analysis - an example
Ours: • We are their first client in a
new market
• Small but growing business

Ours:
• Relatively small purchase volume
• Lack of negotiation skills

Theirs: • Leader in their home market
• Deal in both raw materials &
finished products
• Better access to market
information
• Good technical support
capacity

• Lack of experience in our market

Theirs:

SW

• Excess capacity
• No product differentiation

OT
• Long term contract
- guaranteed supply
• They provide training to our
product design staff
• Possibility to buy back some
of our production
ITC

• They may force us into sole source
that restricts sourcing elsewhere

contract

• They may sell to our competitors too
• They may withdraw from our market if
not successful
• They may increase prices at the end of
the first contract
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SWOTing your suppliers!
Try to apply a SWOT analysis to an enterprise that you are considering:
Product/service:

Name of potential supplier:

Strengths

Weaknesses

Yours:

Yours:

Theirs:

Theirs:

Opportunities

ITC

Threats/Risks

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3-1

Recording your supplier information:
It is very important to keep good records of
the supplier information that you have
collected
Don’t forget to include the suppliers you have decided to
drop or disqualify - and the reasons why!
You can use either a manual or a computer-based system
OR

ITC

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/Fax

Products/ Services Supplied

Prices

Crossreference to
products /
services
ITC

Record the
information
on each card

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145
‘B’ Style Pump Part No
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143

Create cards
for each
product / service
purchased

Description of Products Service

Stock Record (products)

Suppliers

Crossreference to
suppliers
ITC

Record the
information
on each card

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4-4

ITC

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4-6

Advantages of computer-based systems:
Data input & maintenance is easy & immediate
You can download information directly from the
Internet or have direct links to websites
It is easier & faster to retrieve specific
information using search words & codes
Be careful
when deciding
which system
to chose

More information can be stored more easily
The information can more easily be shared
amongst many users

- not all
systems are the
same!

ITC

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ITC

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Your supplier information base
List below those types of information that currently are - and aren’t - in your
supplier files
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ITC

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5-1

Action Point

8
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5-2

Further developing & motivating suppliers:
Developing capabilities:
Provide technical expertise
Provide funding for production
Transfer of IT systems, etc
...
6-1

Further developing & motivating suppliers:
How to develop motivation?
Buy more
Become more attractive to the supplier
How to become more attractive?
Pay on time
Have efficient & effective processes
Respond swiftly
Be professional & ethical

ITC

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7-1

Action Point

8
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ITC

M5:U8:8

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