Consolidated Products: the Industrial Systems Business Unit

Consolidated Products: Supplier Selection for the Industrial Systems Business Unit Our stem has been tasked to source electronic sensors for the new line of industrial pumps be developed by our Industrial Systems business unit. Our team visited ternary key suppliers experience Technologies, Techline, and demodulator Link to collect minute information regarding price, delivery, cost, quality and other key performance metrics. afterwards conducting our due diligence, our group recommends sourcing the electronic sensors from sensor Link. This recommendation is establish on comprehensive financial analysis of each supplier, count landed cost considerations, risks involved with each supplier, and other soft factors discussed below. Each supplier provided us with financial data for financial years 2009 and 2010. We analyzed this data to study each suppliers financial strengths and weaknesses (Appendix A Financial Analysis). Our analysis shows that detector Link is the strongest supplier in terms of its financial strength. They nurture the highest liquidity ratios among the three suppliers and can most readily stick out short term cash needs. Their FY 2010 supple ratio of 1.21 is non only twice as high as Control Technologies (0.60), but is also an 11% improvement over their FY 2009 quick ratio (1.09).

At first glance, an average collection accomplishment of 60 days may raise some concerns regarding their mogul to meet short term capital demands. However, these concerns are placed to rest based on their high liquidity ratio. Sensor Link also turns their inventory over 8.84 quantify a year compared to approximately 5.31 times by Control Technologies and 4.36 times by Techline. This shows better inventory management by Sensor Link. Furthermore, Sensor Link is less exposed to risks associated with obsolescence, scrap, and pilferage by non holding as much inventory on reach out as the other two suppliers (Appendix D Risk Analysis). The second base criteria we used in recommending Sensor Link was total... If you want to mystify a full essay, order it on our website: Orderessay

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