Using a Spread Sheet to Analyze Supplier Performance and Pricing

Problem Statement

IMPROVING DECISION MAKING: USE A SPREADSHEET TO SELECT SUPPLIERS

Software skills: Spreadsheet date functions, data filtering, DAVERAGE function

Business skills: Analyzing supplier performance and pricing 2- 11

In this exercise, you will learn how to use spreadsheet software to improve management decisions about selecting suppliers. You will filter transactional data on suppliers based on several different criteria to select the best suppliers for your company. You run a company that manufactures aircraft components. You have many competitors who are trying to offer lower prices and better service to customers, and you are trying to determine whether you can benefit from better supply chain management. In the BlackBoard “Learning Module” folder you will find a spreadsheet file that contains a list of all of the items that your firm has ordered from its suppliers during the past three months. The fields in the spreadsheet file include vendor name, vendor identification number, purchaser’s order number, item identification number and item description ( for each item ordered from the vendor), cost per item, number of units of the item ordered ( quantity), total cost of each order, vendor’s accounts payable terms, order date, and actual arrival date for each order. Prepare a recommendation of how you can use the data in this spreadsheet database to improve your decisions about selecting suppliers. Some criteria to consider for identifying preferred suppliers include the supplier’s track record for on- time deliveries, suppliers offering the best accounts payable terms, and suppliers offering lower pricing when the same item can be provided by multiple suppliers. Use your spreadsheet software to prepare reports to support your recommendations.