Pacific System Case

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Pacific System Case Weilun Ding Pao Chen Shan Questions 1. What is your recommended sourcing strategy in this case? Please support your decision with quantitative and qualitative evidence gathered during the case analysis. Also, present your plan to reduce any risks associated with your sourcing decision. Our recommend sourcing strategy is to do multiple sourcing with SureTech and E-Drive. Sort our order as 30% assigned to Sure Tech and 70% assigned to E-Drive. ⦁ SureTech They are willingness and good motivation, flexibility, excellent customer service, commitment to develop new technologies, employee motivation, reputation for reliability and innovation and localization. But also presents some drawbacks, such as its lack of expertise in the market that may be generating the quality problems. ⦁ E-Drive They have experience in the market. The quality is in the average of the market and. The company also offers an improved production systems and the lead-time is very flexible. The proximity with PSC is a plus. Additionally, the company has a strong reputation in product development. Conclusion of the supplier information Considering the products PSC needs should be high quality and the supplier's production and lead-time should be high flexible to support PSC's make-to-order strategy. Avoiding possible risks are the critical issue. Multiple sourcing might minimize the purchasing risk, assurance of the source of supply and also enhanced buyer's negotiation leverage to get a better cost. According to our analysis of these case, Sure Tech and E-Drive are in better overall position. E-Drive performance better in our supplier scorecard analysis in quoted price, quality, and capacity. Although Sure Tech is not doing outstanding on any categories of the scorecard, their overall score is in the second place. Moreover, they were lowest on total cost analysis.

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