You are a Supply Analyst with HTC. Your memo should be directed to K.H. Tung, the head of HTC’s Global Supply Chain Department.
Your one-Page memo (using the case memo template provided in this assignment) must make two sets of recommendations as detailed below. Based on the concepts primarily from Session-14-Supplier Scorecarding lecture (and elements from the Session-16 lecture on TQM as well) and all of the relevant information provided in the case:
- The first section must address how HTC should allocate their battery orders across the supplier-base for the next Quarter. Provide a percentage of order-allocation for each supplier, ensuring that the allocations you recommend total to 100%. KH Tung will be less concerned with how fine-tuned your percentages are, and will be focused more importantly on your justifications of increases or decreases that you recommend for each. Your recommendations should be based upon the scorecard data, each supplier’s individual potential for development, and background information that is presented exhibits 6 and 7 on pages 12 and 13 of the case.
- The second section must describe what Supplier Performance Management and Capability Development measures you recommend that HTC conduct with each of the suppliers who received a scorecard grade below “A” as shown in Exhibit 6 on page 12. Be sure to take into account the relevant information from the case, particularly the information provided in Exh.7 on page 13. Your recommendations will need to include specific measures that HTC should do with each supplier that has areas requiring improvement. Your recommendations should fit with each supplier’s unique issues. Be as specific as possible, choosing from among the supplier capability development examples discussed in class.