Case Analysis for the Power Line Poles

Answer

Case Analysis for the Power Line Poles

            Supplier selection can be tedious and demanding, especially when bidders compete at close range. However, according to Lin and Kuo (2013), there are some universal factors such as the quality of products, cost implication, flexibility, market experience, and organizational values that should be considered when settling on a bidder. This paper seeks to evaluate various perspectives of supplier selection taken by Mr. Yarrow and counterparts when narrowing down to the most appropriate bidder for the power line poles project.

Dealing with Bid Exceptions

            According to Lin and Kuo (2013), all procurement processes should go through a competitive process. However, sometimes, the opportunity to solicit competitive bids may not be possible such as is the case with the electric power poles. Due to inadequate capacity to handle the project, only Nelson company fulfills the bid requirements. Therefore, in the scenario, I would strive to negotiate with the Nelson Company to revise the bid especially with issues touching the quality of the poles such as protruding bolts among others. If the revision is not possible, I would be inclined to accept the bid with exceptions and complete the purchase request form. The implication is that the company will have agreed to work with Nelson company and accept the stated exceptions as stated.

Q1. Procedure for Choosing Suppliers

            Mr. Yarrow conducted a careful analysis of all the eight bids. The first bid selection was based on whether the supplier could meet the first project phase demand which entailed connecting Smithfield and Addison. This section was the most pressing for the project and covered approximately half of the distance. Thus, the bids were carefully evaluated on the basis of price and engineering requirements for the power line poles (Mukherjee, 2017). Besides, the selection was intended to reduce the number of bidders that had to be physically visited to ascertain their ability to produce the poles. With the limited project time, Mr. Yarrow had to reduce this number and ensure assessment for supplier viability could be undertaken. Mr. Northrup also stated that he had reservations on the other three bidders in regard to their plant capacity, equipment and ability to meet deadlines which are requisite in supply management (Johnson & Flynn, 2015). Thus, based on the spread of these critical points of examination and the limited time, I agree with Mr. Yarrow on the first selection of four viable supplier bids.

Q2. Mr. Yarrow’s Choice

            To begin with, Mr. Yarrow had various options on the choice of a bidder for the project supplies. The project scope required bidders to be equipped with a computer program for pole design and a heavy metal large press-brake. However, after scrutinizing various bidders, only four could match the company requirements. As a result, Mr. Yarrow and Mr. Northrup decided to undertake a physical visit to three since Nelson Company was already known to the organization. At this point, there were still a variety of bidders to choose from. However, when Mr. Northrup visited the three companies, M, N, and P, he realized that in terms of ability to meet the strict timeline, the capacity of the plants and available equipment, they were not suited for the operation. This left Mr. Yarrow with only Nelson Company as the final choice. Thus, as much as Mr. Yarrow had eight bidders to begin with, he lacked an alternative to Nelson Company in terms of the basic project requirements.

3. 3. Responsibility for Final Specifications

            The final specifications of the poles are determined partly by the manufacturer and the engineering consultant. Lin and Kuo (2013) state that before the manufacturer can start working on the product, they must have the design specifications required for the project. The design criteria are provided by consultant engineers in collaboration with the contracting company. However, the consultant must consider any exceptions given by Nelson Company that touches on the pole design. For instance, the consultant ought to factor in the exception of excessive bolt projections, inspection and welding specifications proposed by Nelson Company for safety and cost implication purposes. This implies that both teams must work with each other to develop cost-effective and safety compliance poles without compromising on quality specifications such as materials, strength, and durability. However, the consultant must approve the final design structures before Nelson Company starts the manufacturing process of the poles.

4. 4. Additional Information

            Additional information on documentation touching on the project should be availed by Nelson Company to ease decision making. According to Mukherjee (2017), documentation should focus on management of the task, quality assurance, engineering, fabrication, assembly, test, and installation. Blueprints assuring that quality will not be compromised and all engineering processes that will be adhered to are important to ensure the manufacturing company carries the burden of responsibility where any aspect is compromised. Besides, the persons tasked with management of the supplies should be identified and their roles such as design experts, manufacturing personnel, and material experts among others (Mukherjee, 2017). This document enables Mr. Yarrow to know who to go for when in need of clarification, making follow up easy and organized. As much as these documentations impact on the monetary and time costs, they are crucial in achieving high project efficiency (Mukherjee, 2017). Information on the mode of payment and shipment of finished products should be given. Whether the products will be delivered in batches as production continues or deliveries made once all poles are manufactured is of the essence in planning inventory on the installation site (Johnson & Flynn, 2015).

5. 5. Decision based on the Available Information

            Based on the information availed by the suppliers, Nelson Company is a suitable organization to handle the power line poles manufacturing bid. Since the company has all the required machinery and expertise, it is in a place to deliver timely without compromising on the product’s quality. This is despite the fact that the cost implications will be higher than the bids placed by the other companies (Mukherjee, 2017). Nelson Company also enjoys a longstanding relationship with Moren Corporation which gives them an upper hand. This implies that since they have another project running together, they understand how either company operates and know the level of quality to expect based on past experience.

6. 6. Treatment of Suppliers

            The other companies have been fairly treated considering that time and resources have been spent going through their bids. Mr. Yarrow analyzed all supply bids and shortlisted companies based on their terms and conditions of service before narrowing down to the suitable four. Also, Mr. Northrup took up the initiative to physically visit the remaining three and assess their ability to handle such an intense project with time, cost and scope constraints (Johnson & Flynn, 2015). From the survey, he concluded that they were not in a position to dispense the project requirements in the required time and to the standards because they lacked some machinery. Therefore, all analysis was fairly conducted and elimination was purely on the capacity and ability of the supplier to handle the project requirements.

Conclusion

            In conclusion, supply selection is a compulsory process to ensure the organization has a variety to choose from. This ensures that equal opportunity is given to various suppliers and the organization benefits by having room to make a choice on the best fit. The implication is that the organization pays for the best quality and delivery based on its selection criteria. By choosing Nelson Company, Moren Corporation got the best quality products possible considering the machinery and experience needed to carry out the pole manufacturing.