Assignment 10

Submitted to

Sir Umair najam

Subject

Supply Chain Management

Submitted By

Tayyaba Amjad L1F16MBAM0221

 JILLTRONICS SECURITY SYSTEMS
SUMMARY
Jilltronics Security Systems board meeting in 2015, Thomas Goodenough, the company’s chief
executive officer (CEO), indicated his interest in reviewing the firm’s supply chain strategy,
because of increasing product and service demand. The company was an important regional player
in the home security market. The CEO expressed his desire to take a more analytical approach in
developing the supply chain strategy that might include expanding the number of vendors. He
reported to the board that this initiative could pose some risks due to the challenges associated
with managing multiple suppliers. A vendor selection assessment plan and reporting her findings
at the next board meeting.
Growing public concern regarding the uptick in both terrorism and residential burglaries and a
somewhat improving economy represented the primary factors behind this projected increase in
demand for security systems and services. Some specific technological trends in home security
included automation, video surveillance, remote monitoring, and wireless. Home automation
provided occupants with the capability to access and operates not only their security system but
also a variety of other applications.
Overall, the residential security industry would continue to increasingly rely on technology as a
vehicle to remain competitive in this very fragmented market.
With sales approaching $100 million annually, Jilltronics had experienced significant growth in
both the new housing and retrofit markets. The firm offered a wide range of security systems and
services including electronic locks, cameras, and sensors.
Scheer decided to use multi-factor analysis in carrying out her assignment because there were
various criteria needed to judge the overall capabilities of each candidate vendor. Multi-factor
analysis was an evaluation technique that combined specified criteria, rankings, and relative
weights into a single preference table. She also selected the five criteria of Delivery, Quality,
Terms, Support, and Price, based on discussions with her colleagues. These criteria were very
typical of those used in the vendor selection process.
In terms of the relative importance of the identified criteria, Scheer viewed Delivery and Quality
as three times as important as either Terms or Support, and viewed Price as twice as important as
either Terms or Support. She also conducted a best-in-show review of the candidate vendors. Each
potential supplier was ranked on a 0 to 100 scale for each of the decision criteria by Scheer’s
technical staff based on their previous performance. No single candidate vendor dominated across
all criteria. Williams was assigned a performance score of 80 on Delivery compared to
Builtright’s Delivery score of 50. Scheer established a minimum threshold score of 70 for a vendor
to qualify as a supplier. In preparing her presentation, Scheer also planned to present at the
upcoming board meeting a sensitivity analysis on key model parameters (e.g., factor weights).
Furthermore, in keeping with Jilltronics’s analytics practices, she planned to assess both benefits
and costs associated with the candidate vendors.