PQI: Management of Suppliers

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Publication Date:
March 07, 2011

Industry:
Consumer Electronics

Source:
University of Hong Kong

Taiwan-based memory manufacturer Power Quotient International Co. Ltd. (PQI) had an established system for selecting, assessing, and managing suppliers. A scoring system that assessed suppliers in areas ranging from technical expertise to service quality and responsiveness made it easy for management to spot suppliers’ strengths and weaknesses and to decide whether to keep a supplier at arm’s length or to cultivate a strong relationship with the supplier. PQI had just completed its biannual evaluation of suppliers, of which several required further investigation. These suppliers had received only average scores despite strong performance both technically and commercially. Meanwhile, the management wondered whether sharing its assessment results openly with suppliers might help improve its relationships with them.

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PQI: Management of Suppliers

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