Supplier Management Exercises
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1 Supplier Management Exercises Scenario: Recently, the Success Electric Company (SEC) has obtained enough capital to fund a marketing strategy. Now, SEC has decided to ask your project management consulting firm (PMC) to help them accomplish the work associated with marketing and communications. Exercise 1: Make or Buy Develop a marketing communications strategy and brand identity for Make or Buy Reasons Design and maintain a web site to provide customers with on-line order capability, ordertracking, Host the web site and provide technical support and security. Design a customer relationship management database to track the impact of marketing 1
2 Exercise 2: Scope of Work (for subcontractors) Scope of Work (2-3 elements) 2
3 Exercise 3: Procurement Documentation: Request for Quote Request for Information Request for Proposal Invitation to Bid Procurement Documentation 3
4 Exercise 4: Contract Types Contract types: Purchase Orders (PO) Fixed Price (FP) also known as Lump Sum Fixed Price Incentive Fee (FPIF) Fixed Price Economic Price Adjustment (FPEPA) Time and Materials (T&M) Cost Plus Fixed Fee (CPFF) Cost Plus Incentive Fee (CPIF) Cost Plus Percentage of Costs (CPPC) or Cost Plus Fee (CPF) Contract Type Reason A market research firm to develop a marketing communications strategy and brand identity for An overseas web development firm to design and maintain a web site to provide customers with on-line order capability, order-tracking, and order follow-up. A Internet service provider and web hosting firm to host the web site and to provide technical support and security. Acquire a customer relationship management system to track the impact of marketing strategy on customer buying behavior and 4
5 Exercise 5: Evaluation Criteria for Each Supplier Evaluation Criteria 5
6 Exercise 6: Creating the Contract Questions/Issues: What change control processes would you recommend that SEC put into the contract with the web development firm? What specific warrantees or guarantees would you recommend that SEC put into the contract with the web hosting company? In negotiating the contract for the CRM, what considerations would you include? 6
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