Platinum Box Case Study

Executive Summary

The new business venture to produce quality boxes for the U.S market has created a requirement for Platinum Box to source five new presses. The three bids to supply these presses were from Merakuri, Jabaking and Pnutype. Each bid had its attributes over the other.

Finding a way to fairly evaluate each bid was needed. A Weighted Evaluation System was chosen. Four factors were used to evaluate the bids. They are: Performance & Quality, Service, Price (total cost of purchase determines the pricing factor) and Financing. By applying a value to each, a better evaluation of the bids can be made.

Performance & Quality was perceived to be of utmost importance to the point where the success of the project depended on it. This was given a high value of 40 with the other three taking 20 each for a total of 100. The Merakuri bid scored the highest with 85 followed by Pnutype with 70 and Jabaking with 60.

Jabaking is the current supplier of our presses which came about as a result of a favour from the owners. Platinum Box has always felt indebted to Jabaking and may feel some loyalty as a result but the inability of their current presses to meet the quality specification put forward has dismissed them as supplier at this time. Also the union presence is strong at Jabaking which could result in a union push towards Platinum Box if they were chosen as the supplier. The new technology used by Pnutype has a high risk attached. It has a very short track record and the technology should be better proven before it can be adopted by Platinum Box. This leaves Merakuri as the preferred vendor with its acceptable product quality, highest production numbers, next day service and fair pricing with financing. Another consideration is that the factory trip to South Korea and Regina should both be taken advantage of.

The procurement process should be closely monitored by a cross functional team of Platinum Box procurement and plant management members. They...