ntial suppliers - Performs preliminary analysis for CM - Responsible for placing orders - Limited - Varies Source: Stevens, Personal InterviewWhatAt this stage, the buyer completes a Request for Proposal (RFP). An RFP analyzes all of the criteria discussed in the Evaluative Criteria section. The buyer then selects the top three suppliers according to the criteria and submits a report to the commodity manager. At this point, the buyer’s input into the selection process ends. After reviewing the report, the commodity manager contacts suppliers that he/she feels can satisfy IBM’s requirements. WhereNegotiations typically take place at IBM’s San Jose site. Present in these negotiations are the commodity manager, the commodity engineer, and at least one representative from the prospective supplier’s firm. At the initial meetings, the evaluative criteria are reviewed and design specifications are discussed. The supplier is expected to bring product samples for inspection by IBM’s Precision Manufacturing Inspection department (PMI) (Stevens, Interview).WhyThere are three reasons why IBM would be interested in purchasing spindle motors from Nidec: price, quality and technological capabilities. These three capabilities are consistent with IBM’s evaluative criteria.Price - Since 1985, Nidec has been in the business of manufacturing spindle motors. This vast amount of experience has enabled Nidec to achieve economies of scale, producing each motor at a cost lower than competitors. Currently Nidec has a 70 percent world market share of the spindle motor market (http://www.nidec.co.jp/english/topics/index.html). In addition, Nidec is continuously working to reduce the cost of manufacturing its motors in order to pass savings on to customers. Quality - Spindle motors must meet rigorous requirements for precision, and Nidec has this capability. Not only does DPPM consistently hover around zero, the quality of ...
