Key Objectives, Suppliers Selection And Request For Quotation (RFQ) Document In JTW Case Study

Key objectives that aimed to achieve by JTW

1. Key objectives that aimed to achieve by JTW.
2. Selection for appropriate suppliers.
3. SIX major pieces of information included in the Request for Quotation (RFQ) document.

This case study is about the first airplane's window manufacturer for both civilian airliners and military aircraft. Now a day glass has limited use in the manufacturing procedure. Mainly acrylic is used now for the window manufacturing purpose; it is much lighter than standard glass. JTW is interested in improving its technology to manufacture acrylic that requires quantity of liquid monomer. Liquid monomer is the principal required raw material to produce acrylic.

JTW's head procurement, Mr. Vasseem Ibrahim identified two liquid monomer suppliers one in America and other in the Far East. Procuring raw materials from the international market might create several issues (Barczak 2015). There are many risk management key factors used to overcome these problems. Here this essay will demonstrate different objectives to achieve the aim, several appraisable competitive tendering, criteria to select appropriate suppliers and a weighted point system that are going to be used for the evaluation of quotations from two international suppliers.    

Mr. Vasseem Ibrahim intended to make direct contact with the foreign suppliers of liquid monomers (Veldman and Schiele 2014). There are certain criteria he should keep in mind during the arrangement of providers. These are discussed below:

The quality of the product: The mentioned international suppliers belong to America and the Far East. Therefore, the quality of the product is required to good. There is a difference between acrylic and liquid monomers. Acrylic referred to as high quality plastics. A group of polymers noted for its transparency and elasticity is known as Acrylic. Military airplanes are needed to be highly protected the civilian planes similarly as well. Therefore, the quality of the monomer should be good (Bolton, Gustafsson and Walker 2013).

Price: This is an advanced chemical technology introduced to reduce the use of standard glass doors. As the suppliers industry is far from JTW headquarter, the price will be much for the supply (Kinoshita 2012). They do use porters five forces competency model to demonstrate the actual price for commercial benefit.

Delivery of the raw materials: The delivery time for the raw material is essential to be fixed by the suppliers. The raw material flow should maintain the SCM (Supply Chain Management) methodology (Bozarth and Handfield 2015). JTW should be aware of the actual delivery time of the raw material so that on the date of manufacturing so such issue will arise.

Competitive trending is an appropriate method

Payments term and after-sales service along with maintenance arrangements: In any business, buyers and sellers both are aware of their profit. There are different delivery methods followed by various organizations. The price should be checked along with the quality of the product. As this is new, chemical technology the service provider will not be available everywhere during the requirement (Bolton, Gustafsson and Walker 2013). Therefore, it is necessary to avail the maintenance arrangement as well.

Figure 1:  key objectives

(Source: Delibašić 2014, pp-72)

Competitive tendering is an appropriate portfolio of products and services. This is awarding the contract to one of the international suppliers of liquid monomers. There are several advantages behind competitive tendering. This level of competition is always established between the same product vendors and the same products buyers. JWT mainly uses the Poster’s five forces policy to select and reduce the competition market (Ortaboy 2013). They can make bargaining for the selection of the best suppliers. The advantages for competitive trending are discussed below:

Benefits of competitive tendering:

Mr. Michael Porter introduced the aggressive marketing policy. That includes cost leadership, differentiation, cost focus and differentiation focus (Walker 2013).

1. Reduced cost for the service level agreement that provides more competition rate. This is known as going rate.
2. Another term is called ripple effect. It is a cost reduction methodology by the improvement of public agencies performance in accordance with the responsive competitive environment (Barczak 2015).
3. Revenue of tax, license for authentication, and payment done by the private contractors for the service provided to the public cost id reduced (Bolton, Gustafsson and Walker 2013).

Tendering competitive market follows the below steps respectively:

In a defined period the government started finding for the competitive tenders to deliver a perfect quantity and effective quality measuring duty. Different contractors are hired to deliver the products during the given time period. Whenever the contractor fails to provide the delivery within the period they have to suffer by penalty (Kinoshita and Tzeng 2012). New service providers are allocated for the buyers and then the procedure move on.

Identification of vendors: It is important to gather the opinions of stakeholders to define the criteria required for the selection process (Grasemann 2014). The list of speakers includes different members from purchasing, research and development, quality assurance, marketing and many other areas. These reflect on the selection procedure. The cost, delivery, time-duration, maintenance arrangements are the list of features should be the content of an individual supplier.

Measurement of supply performance: Once the order is ready for the sellers side as well as from the buyers side it is necessary to measure the performance of the suppliers. Firstly, it is estimated that within the given period whether the vendor can provide the raw material or not (Kinoshita 2012). According to the time, the quality of the product provides is good enough or not. Within the given period, the best quality product is required by JTW.

Selection for appropriate suppliers

Supplier qualification screening: Screening of providers' qualification is necessary for this field. In this case, the raw material is acrylic, which is lighter than regular glass and costly also (Veldman and Schiele 2014). At the given range both of the international suppliers’ performances are tested according to that, the selection method should move on. They should communicate well with the dealers with a positive can-do attitude. They should have a mind to attracting and impress the buyers as well.  The suppliers must meet more than the minimum requirement of the customers.

Improvement Policy: A good provider should have to make an improvement all the time. The American acrylic monomer suppliers' every day improving their technology to make lighter weighted and robust improved windows for the military airplanes. The chemical improvement is quite affordable than the others (Grasemann 2014). Therefore, according to Vasseem American acrylic or semi-liquid monomers producing company should come under deal as the suppliers. A high quality product providing organization will make JTW beneficial.

Creation of supply base: The suppliers those have already passed the qualification needs and are suitable for contract awards referred to as the predefined qualified suppliers. Good suppliers are always flexible and reliable as well. They should not uncover significant opportunities. They must maintain the CRM (Customer Relationship Management) chain. Poor consumers can prevent suppliers being good and reach the benefit (Bolton, Gustafsson and Walker 2013). JTW is a well-known organization that manufactures glass windows but now trying to improve its technology by establishing a CRM along with the two acrylic producing firms.

SIX principal parts are including in the application for quotation document. This is needed for every loan application (Grauerholz 2013). The application will be invalid if any of the keys among the six pieces is missed out. These are the fundamental pieces of information required to start the processing of the loan application for the Lender. Again sometimes addition information is also necessary to the lenders (Kawakami 2015). Mr. Vasseem wanted these SIX key pieces of information to assign the loan application to deal with the international suppliers from America and the Far East. Any business appraisal needs the huge investment of money for the commercial benefit. This investment is not possible without bank loans. Real estate attorneys help their clients to avoid the risky situation by making sure the approved application process. The SIX key pieces that are followed by the appraisal the loan are-

1. Name of the consumer
2. Income per month
3. Social security number
4. The property address
5. An estimates value of the property
6. The final loan amount

SIX major pieces of information included in the Request for Quotation (RFQ) document

Request for quotation has SIX tool keys that are followed by all business modules. The entities related to the diagnostic tool keys are again interrelated to each other. Here the name of the consumer is JTW (Matyjaszewski 2014). The loan provider will measure the monthly range of income and according to the amount of loan will be decided.

There are certain features required for the evaluation of the right suppliers. Not all the key points are possible to analyze for the selection process, but some of the key points are measured for the assessment purpose (Kinoshita and Tzeng 2012). There are some advantages and disadvantages as well. The benefits include – flexibility of the system, allows the ranking of the suppliers; it can moderate the implementation cost, it combines the qualitative and quantitative factors into a single system. The disadvantages include tending to focus on the unit price, in also requires some unit skills. The suppliers evaluation criteria most of the times uses this method of supplier selection (Goetsch 2014). JTW also compares two of the providers' companies' backgrounds.  The entire range of status and the total supply chain methodologies that are followed by the firms. Suppliers’ evaluation and selection have many criteria such as- management capability, employee capabilities, cost structures, total quality performance, systems and philosophy, financial stability, environmental regulation and compliances, production scheduling and control system, ecommerce compatibility, suppliers sourcing strategies, and long-term relationship potentials. The entities that are related to the arbitrary point are quality, delivery, price, service and the overall total point (Oostveen 2014). Among these points, the two point distributions are quality and price. For the supplier selection criteria, these are the most important features that come under consideration. JTW glass window Manufacturing Company is planning to establish a connection as a dealer with the international suppliers (Barczak 2015). An assessment of the publication that has been accounted for the JTW leading manufacturer provides MP products and reveals healthy total profit range over the amount of 8 percent till last two years.

Conclusion

In this study, the researcher focused on the leading glass door supplier organization JTW. They produce glass doors for the military as well as for the civilian airplanes. Now in this competitive market competition is everywhere for survival. There are many other glass doors manufacturer became a contest to JTW (Wassenhove 2013). Similarly, implementation of light weighted glass-like doors called acrylic is becomes another game to JTW. They are trying to produce this kind of glass doors but for that, they need raw material suppliers. The head of procurement of JTW has decided to make a deal with the acrylic producer companies. One of the suppliers firms is in America and other in the Far East. Between these two suppliers, which firm are going to be selected, and the financial department of JTW decides which one to be rejected. According to the behavior of the providers and the right management, the decision is taken. There is SIX diagnostic essential tools information that is used to sanction the loan application. The tools include name of the consumer, monthly income, social security number, the property address, an estimated value of the property, and the amount of loan.

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