T, a F500 company in M is one the largest retail chains in U. it has over 900 stores in 49 states, over 365,000 employees and revenue of over $70 billion. Its supply chain includes 37 distribution centres, and 4 warehouses near coastal ports to receive foreign shipments. For its non-fabric products, such as electronics, furniture, hardware, kitchen goods and sporting goods, T collaborates with over 3000 factories worldwide. To maintain total quality, it must strictly monitor quality standards. To do so, T ensures quality is maintained even as products move through the supply chain, before arriving on shop shelves. However, with 3000 vendors globally the chance of quality variation is high. When a supplier joins T’s supply chain, it must sign a “standards of supplier engagement” to meet quality requirements. Further the factory is inspected, and a rating assigned to determine if a supplier can use the factory. The factories are also required to sign and conform to T’s global social compliance about worker treatment. T assists factories to improve performance on these fronts, however repeated failures lead to a termination of the agreement. T employs Six Sigma and various statistical processes in monitoring and quality control. To determine: How other large companies with a global supply chain might use formal rating systems to evaluate suppliers.

Question

Want to see the full answer?

Answer 1

Question

Chapter 2, Problem 4.1ASC

Summary Introduction

Case summary:

T, a F500 company in M is one the largest retail chains in U. it has over 900 stores in 49 states, over 365,000 employees and revenue of over $70 billion. Its supply chain includes 37 distribution centres, and 4 warehouses near coastal ports to receive foreign shipments.

For its non-fabric products, such as electronics, furniture, hardware, kitchen goods and sporting goods, T collaborates with over 3000 factories worldwide. To maintain total quality, it must strictly monitor quality standards.

To do so, T ensures quality is maintained even as products move through the supply chain, before arriving on shop shelves. However, with 3000 vendors globally the chance of quality variation is high. When a supplier joins T’s supply chain, it must sign a “standards of supplier engagement” to meet quality requirements. Further the factory is inspected, and a rating assigned to determine if a supplier can use the factory. The factories are also required to sign and conform to T’s global social compliance about worker treatment.

T assists factories to improve performance on these fronts, however repeated failures lead to a termination of the agreement. T employs Six Sigma and various statistical processes in monitoring and quality control.

To determine: How other large companies with a global supply chain might use formal rating systems to evaluate suppliers.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Factor Factor Description Weight Present Location Newbury Hyde Park 1 Average community income 0.35 2 Community growth potential 0.15 3 Availability of public transportation 0.20 4 Labor availability, attitude, and cost 0.30 3 2 3 2 35 20 25 75 33 28 55 55 25 75 65 50 50 55

Subway with more than 27,000 outlets in the US is planning for a new restaurant in Buffalo New York. A) Based on the given information, the best location in Buffalo for Subway to open the new restaurant is Baptist Church with a total weighted score of? (Enter your response rounded to two decimal places.) B) If the weights for Space and Traffic density are reversed, the best location in Buffalo for Subway to open the new restaurant will be with a total weighted score of ? (Enter your response rounded to two decimal places.)

northeastern insurance company is considering opening an office in the US. The two cities under consideration are going to be Philadelphia New York. Factor ratings (higher scores are better) are in the table. The best location for northeastern insurance company to open would be which with a total weighted score of ? (response rounded to two decimal places)