Question

1. Consider the different suppliers – which one would you select? What type of agreement would you use?


2. What are the risks and rewards to consider in this case? How can the team balance these risks and rewards?


Find "Sourcing Energy at a Steel Manufacturer" case on g-o-o-g-l-e to answer the questions above

Answer 1

Answer:

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Explanation:

Thanks

Answer 2

Answer 1: Considering all suppliers, Company A has the most extensive networking and the best track record of on-time project completion. Second, they were willing to deal with smaller clients and give discounts and competitive pricing and the assignment also discusses contract management, including the supplier selection process and the types of contracts that are utilized. It also explains how to write a contract and how to negotiate one. It assesses the risks and benefits of the procurement process. Furthermore, it reveals how top management requested information on how to design a contract based on the facts of the case. It also outlines the procedures for dealing with any contractual errors, disagreements, or breaches that may arise.

According to market study and proper strategies presented by supplier A the agreements would be-

- A pricing schedule which is dependent on the building’s load factor.

- A “Net 30 days” payment term with a 0.3% discount if payment is made within 10 days.

- Access to a diverse group of energy service companies.

Also we can negotiate according to our needs. Purchase order specifications:

• Contract Purchase order.

• Payment terms net 30 days and different taxes.

• Terms and conditions regarding unavailability of power, uncalled power cuts.

• Including Indemnification, right to audit, limitation of liability, changes according to market price.