University Case Study: APC Europe Supplier Performance Evaluation

This case study analyzes the APC Europe case, focusing on supplier performance assessment and evaluation. The analysis examines the purpose of the supplier performance assessment, its implementation, and its impact on supplier relationships. It evaluates the performance of Branco, a key supplier, highlighting its strengths and weaknesses based on quality control, delivery, and non-conformance issues. The document further explores how the supplier performance system could be improved to prevent problematic situations like the one with Branco, suggesting strategies for better quality control, communication, and relationship management. The case study provides a detailed overview of the issues faced, the methods used for evaluation, and recommendations for improvement, offering valuable insights into supply chain management and vendor relationships.

Running Head: CASE STUDY
APC EUROPE CASE 13-1
Name of the Student
Name of the University
Author’s Note

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ANSWER 1:
The criteria and scoring system implemented by APC (Europe) had been a product of the
team from North America several years earlier and described the key aspects of the performance
of the supplier as required under the title of importance by the supplier. Suppliers were provided
with the scoring card in order to explain their scored and the grounds on which they were
evaluated by the company for the terms required for their quality control and in house training
purposes. In addition to the evaluation, the suppliers were also given recommendations on how
to improve their evaluation and such recommendation was provided to the suppliers at the end of
each quarter. Therefore, it was evident that APC maintained detailed information about the
supplier and their norms for evaluation and the same was intimated to the suppliers to avoid
discrepancies in the relationship. The criteria for the rating included quality control, delivery and
continuity in the performance. The quality control check being the majority chunk determining
the effects of evaluation and its grounds. According to Noe et al. 2017, it can be explained that
human resource is all about competition and such evaluation forms the basis of competitive
advantage of the suppliers towards each other. In addition to it, the evaluation also forms the
basis for the creating of the comparative study among the suppliers and approaches taken by
them to enhance their performance, improve their flaws and keep a check on the satisfactory note
of their vendors.
According to Singh 2014, it has been explained that the supplier and their evaluation
establishes the comparative note among their industry for the recognition of their business and
performance in the market. Such evaluation ensures that the Demand and Supply management of
the suppliers and the vendors is accompanied with grounds for the evaluation. Of the supplier
finds any ground to be unlawfully evaluated, he or she can contact the vendor company and

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request for re-evaluation along with their concern in the previous evaluation methodology.
According to Munoz 2013, it has been explained that quality control or sensory evaluation
programs illustrates the process through the real examples of the complaints encountered by
various consumer product companies like food, health drinks and other end-consumer based
companies.
Therefore, it can be said that the evaluation processes of the suppliers for their
performance is an effective tool to control their check on quality and their other performance
related issues. The supplier would be under the radar to maintain his occasions of delivery,
behavioral capacity of its people and the quality of goods and services being supplied to the
company. Such controls are effective in modifying the quality controls imposed upon the
suppliers for their fear to lose business in future especially if the evaluating firm is one of their
prime customers for the supply of goods and services. No supplier would wish to store the goods
in the warehouse and lose business effectively on the grounds of quality and continuity of
business. Thus, such evaluation stands as an effective methodology to impose quality control
checks upon the suppliers supplying the goods and services.
In the given scenario, the suppliers are evaluated on the basis rejection and non-
confirmation of contracts, process capability and data samples of goods and services, quality,
time of delivery, and paperwork involved with the condition of the shipment. The evaluation
ranges from 0 to 4 or 5 depending upon the situational analysis available in the evaluation card.
ANSWER 2:
Branco’s last three quarters have been considerably been noticed for the evaluation. The
supplier Branco faced various problems wherein, one problem would be identified and resolved

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in the first quarter whereas more problems would arise in other aspects in the next quarter. Thus,
the weakness as per Branco’s alliance are:
 Quality problems were a problem for Branco to withstand the pressure of business. The
Shipments were found in poor and defective cartons due to overlapping flaps.
 Dur to automation in the production line, the procedure resulted in slowing down of the
production process.
 The last Branco shipment resulted in the loss of 30% production to the company.
 Non-conformation issues were identified in the form of stalling of an equipment after the
production had started.
 The cartons of packaging were odd sizes and required serious need for custom
specifications to meet the requirements of the customers.
The strengths of Branco as a packaging and supplying firm are:
 Branco is the only firm engaged in supplying of custom made packaging units for the
goods requiring such customized packaging.
 The relationship between Branco and APC had been established based on eight year long
trading of business based on trust and quality.
 The trust formed the basis of the supply of custom made packaging units and the same
was established between Branco and APC.
 Branco supplied 500,000pounds worth of goods tom APC almost every year establishing
a reasonable ground for trust and commitment between the parties.
On the basis of above analysis, it can be explained that although Branco suffered from
serious back-blows related to quality and efficacy of the goods supplied to the company

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APC, it should be given a chance to reestablish the trust. as it has been said already that it
took eight long years to solidify the relationship between the parties, the same trust cannot be
broken in one go with one major fault. However, such chance should not be given at the cost
of profits for the business but making a supplier go out of business and breaking off the
chord of trust in a snap is a major step and such step should only be taken after a reasonable
period of warning and reasonable number of chances. Thus, it can be analyzed that business
and relationship of trust both stands as firming ground for the completion of transaction
between the company and the supplier. If the supplier is at repeated fault, the company stands
as a duty to inform the same and provide for reasonable grounds for improvement without
compromising the interests of the business. This is so because business is a separate legal
entity and the interest of the business and the personal interest shall be separate. However,
the relationship established by Branco is with that of the company APC and hence, APC
stands in its capacity as a legal entity to provide the supplier with a reasonable chance to
improve and reestablish the shaking trust.
ANSWER 3:
According to Noshad and Awasthi 2015, it can be explained that supplier quality
development is a comprehensive assessment of to evaluate a supplier’s quality measurement and
usage of various programs to help the suppliers cope up with the situational crisis. In the given
scenario, Branco is suffering from the similar situational crisis. It should taken into account by
the supplier, that what are the requirements put forth by the company and the detailed analysis of
whether those requirements have been effectively met by the suppliers and its related officers or
members. According to Knofius 2016, it can be explained that the evaluation takes only
objective matters into account whereas it is the company specific report analysis which gives the

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detailed study of the analysis about the requirements of the company and the particulars fulfilled
by the suppliers. In the given scenario, the supplier should analyse the company specific
requirements and impose proper training methodologies for the same. Such methodologies would
train the officials on how to deal with such matters and imeediately tend to the specific
requirements of the company. In the given scenario, the relationship was established since eight
long years and the officials would have been well-versed with the requirements of the company
APC and failing in such entrusted relationships reflect negative light upon the efficacy of the
company and its effort in maintenance of trust with former companies. It reflects that the
company focuses to establish new relationships and not maintain them in the long run which will
tend the old established trusts to break and lose business. Thus, the supplier should thrive more
to maintain the established trusts and alongside establish new relationships with new businesses.

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REFERENCES:
Noshad, K. and Awasthi, A., 2015. Supplier quality development: A review of literature and
industry practices. International Journal of Production Research, 53(2), pp.466-487.
Knofius, N., van der Heijden, M.C. and Zijm, W.H., 2016. Selecting parts for additive
manufacturing in service logistics. Journal of manufacturing technology management, 27(7),
pp.915-931.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Singh, A., 2014. Supplier evaluation and demand allocation among suppliers in a supply
chain. Journal of Purchasing and Supply Management, 20(3), pp.167-176.
Munoz, A.M. ed., 2013. Sensory evaluation in quality control. Springer Science & Business
Media.