University SCM Assignment: Portfolio Matrix and Supplier Analysis

This assignment delves into critical aspects of supply chain management, addressing key concepts from Chapters 6, 7, and 8. It begins by exploring the portfolio matrix, a tool for categorizing purchases based on value and risk, and discusses how items can shift between quadrants. The assignment then examines supply base optimization, the process of analyzing and aligning the number of suppliers. Chapter 7 focuses on the risks and benefits of purchasing from financially distressed suppliers and contrasts the advantages and disadvantages of single versus multiple sourcing strategies. Finally, the assignment outlines principles of Total Quality Management (TQM) in supplier evaluation, selection, and measurement, and discusses the importance of ISO 14001:2004 for both suppliers and customers, highlighting its role in environmental management and operational improvement. The assignment draws upon the textbook 'Purchasing and Supply Chain Management' by Monczka, Handfield, Giunipero, and Patterson.

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the Student
Name of the University
Author note

1SUPPLY CHAIN MANAGEMENT
Chapter 6
Analysis of Portfolio Matrix and Analysis of Circumstances the Item Must Fall in More
Than One Quadrant or Evolve from One Quadrant to Other
Portfolio Matrix is considered to be the analysis table which helps and allows the
different users for categorizing purchase or the family related purchases in one of the major
four categories which includes leverage, critical bottleneck or routine. It will be based mainly
on the value potential as well as complexity or the impact of the risk. Each of the quadrant of
matrix helps in providing the criteria which will be allowing for the items related
classification which needs to be purchased in one of the four categories which have been
identified (Christopher, 2016).
The major results which have been found out from the entire analysis is the fact that it
can be compared to current strategy of sourcing for the category related group and tactics
which will be essential for moving forward. For instance- When a product is categorized as
low value or high risk which has been due to the lack of the sources of supply chain
management, in such scenario, there is technological breakthrough which needs to be done
(Vendrell-Herrero et al., 2017).
Analysis of Supply Base Optimization
Supply Base Optimization is defined as process through which the different
organizations analyse the number of suppliers on a continuous basis which is required for
each of the items. In addition, the organizations need to continuously analyse the
performance of the supplier for aligning the number of suppliers who are required in the
present scenario or in the near future with the best kind of performers for the respective item
(Vendrell-Herrero et al., 2017).

2SUPPLY CHAIN MANAGEMENT
Chapter 7
Purchase from Financially Distressed Supplier is being Considered to be high Risk
Decision, however, there are situations wherein purchaser can buy from financially
distressed supplier. Explain
The proper selection of the supplier is considered to be risky kind of proposition which
can be creating deep level of impacts on bottom line of the company. The purchase from the
financially distressed supplier is risky to a great extent as there is higher probability of not
meeting the contractual deadlines or the quality standards in a proper manner (Vendrell-
Herrero et al., 2017).
Analysis of Pros and Cons of Single and Multiple Sourcing
Particulars Single Sourcing Multiple Sourcing
Advantages There is high level of
partnership between the different
suppliers along with buyers
which has been capable of
allowing cooperation.
There is reduction of the risk of
the opportunistic behaviour and
the large kevel of commitment
among the suppliers helps them
in investing in the new facilities
These are considered to be the
alternative sources of materials
in case of stoppage of delivery
by the suppliers
Reduction in the probability of
the bottlenecks which is
mainly due to the insufficient
capacity of production
(Vendrell-Herrero et al., 2017)

3SUPPLY CHAIN MANAGEMENT
or new technology
Disadvantages There is high dependency
among buyers as well as
suppliers
Increased level of vulnerability
of the supply (Vendrell-Herrero
et al., 2017)
Reduced type of efforts by
suppliers for matching
requirements of buyers
High level of cost for
purchasing company
Chapter 8
Discussion and Listing of Principles in Each of the Categories of Evaluation or Selection
of Suppliers
Focus on Customers- To understand their needs and improve the growth prospects (Pettit,
Croxton & Fiksel, 2019)
Leadership- Establishment of direction for making the people feel that they are being valued
People Involvement- It will be making the people feel motivated and committed towards
their work performance
Process Related Approach- Prioritized along with focused improvement related opportunities
System Approach- There is generation of ability on the key processes
Continual improvement- There is high level of flexibility included in the process for
achieving the goals successfully (Pettit, Croxton & Fiksel, 2019)
Factual Decision-Making Approach- There are informed decisions which needs to be
analyzed and it will be suitable for accurate data collection

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Mutually Beneficial relationship with Suppliers- There is increased level of ability for
creating value for both the parties
Importance or Benefits of ISO 14001-2004 for Supplier and Customer
ISO 14001-2004 helps in meeting the different requirements which will be helpful in
enabling the companies for implementing the different policies which will be considering the
regulatory requirements along with other objectives to which the companies need to
subscribe. The ISO 14001-2004 helps in managing the environmentally management
standards which will be helpful for the companies in minimizing how their operational
processes negatively affect the environment along with continually improve the functions in a
suitable manner (Hugos, 2018). It is helpful for the companies to improve their
environmental performance and it will be effective for them in managing the different
activities suitably.

5SUPPLY CHAIN MANAGEMENT
References
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.
Pettit, T. J., Croxton, K. L., & Fiksel, J. (2019). The evolution of resilience in supply chain
management: a retrospective on ensuring supply chain resilience. Journal of Business
Logistics, 40(1), 56-65.
Vendrell-Herrero, F., Bustinza, O. F., Parry, G., & Georgantzis, N. (2017). Servitization,
digitization and supply chain interdependency. Industrial Marketing Management, 60,
69-81.