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Case 13-3 North-Eastern Hospital

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Submitted By aisan
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Size-up: Item | So What? | Hospital policy required supplier contract reviews every five years. | This is ridiculously long! Supplier reviews should be part of annual business strategy! | They have arranged site visits. | It’s a really important step in choosing suppliers. | According to Northeastern Hospital’s RFP it seems that dollar value is not the only focus of purchasing team. | That’s another positive thing about the supplier selection process in the Northeastern Hospital. | In the RFP, the weight of 10% has been assigned to site visit. | Site visit plays an important role in selecting suppliers; they should have assigned higher weights on this criterion. | Northeastern is a large hospital, which provided care for more than one million patients. | Managing the waste should be one of their main problems. |

Problem Statement:
How can Northeastern Hospital find the best supplier to benefit all the stakeholders-patients, people who live in Newton, Massachusetts, the hospital itself, the managers of hospitals etc. And meet the environmental requirement of the hospital?

Analysis:
Strengths - Good suppliers selection process, the fact that they have a rating evaluation system,
Weaknesses – they only review the contact of suppliers every 5 years, they should review the suppliers each year to made sure they are in the same page with the hospital.
Opportunities – by choosing a more innovative supplier they have the chance to gain some strategic advantages
Threats – If they choose NWMs, they put the hospital’s reputation at risk. Since they are not sure about the capabilities of NWMS.

Quantitative

| NWMS | UWM | MBD | Pricing | Best | -38% | -7% | Service & Specification | -71% | Best | -5% | Other | -90% | Best | -20% | Site Visit | -80% | Best | -24% |

* In the above table, I assigned “Best” to the

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