Pegasus Technologies

Introduction Pegasus Technologies procurement specialist Linda Wang, together with three teammates have identified four potential suppliers one of whom will receive the purchase order for supplying the company with 8-inch touch screen color LCD panels in the coming year. The team comprises of Arno Berg senior engineer, Kevin Rice financial analyst, and John Harper quality assurance. The company is seeking to invest in touch-screen LCD panels in order to bring improved user convenience without using a mouse and keyboard.

The company was looking at acquiring the PT 9000, which could be used even in harsh climates. Pegasus Technologies is experiencing a rapid growth and current annual sales are $5million up from $250,000 three years ago. The initial purchase will be for 1 million units, but this is projected to increase by 20% in the next three years. Therefore, the company is seeking to maintain its policy and identify a supplier who guarantees uniform quality for the next three years.

Analysis of the Identified Suppliers The four shortlisted suppliers are Reese Corporation, Capozzi Manufacturing, Kruger Corp, and Payne Industries. Reese Corporation is the most experienced and also the largest in terms of annual sales. The company is well established and is the industry price leader. Reese Corporation's stock price does support the company's claim of being a sustainable corporation and it has a strong market presence. The company has managed to maintain low costs, and it manages its debt quite effectively.

This is an indication that its production will not be affected at any given time (Petcavage, Pinkerton, & Burt, 2010). Reese is well known for delivering its inventory on time. Reese corporation invests very little in R&D and this might depict the corporation's low emphasis on assessing and determining that current and future trends, customer requirements, and industry preferences. Capozzi Manufacturing is not as large as Reese in terms of annual sales.

However, Capozzi does not deal exclusively with LCD panels, but they manufacture a variety of computer equipment. This means they are stretched in their production and they might not have proper quality control since this is not their main focus. The company's production efficiency is also the lowest and it is lower than its installed capacity. The company might also be unable to meet the inventory requirement for Pegasus Technologies since they are more focused on a wide array of equipment manufacturing.

Kruger Corp had the highest bid of $275 per unit. This could be due to the amount the company of investments in its R&D. This investment in R&D is paying well since the company has a high sales growth of about 19 percent. This is appealing to buyers although it is a new entrant into the market. In terms of meeting the requirements for Pegasus, the company would have no problem because they have a high liquidity ratio as compared to the industry average.

The company is also better placed to meet its short-term obligations based on its liquidity ratio (Christopher, 2016). Kruger Corp has the lowest inventory turnover meaning that it stays longer with its inventory than the industry average. The lower sales might be attributed to the higher price the company charges for its units. Payne Industries have the lowest quoted price and it is also the smallest in terms of production. However, the company shows great potential for growth and innovation in the future.

Payne might struggle to keep up with the demands for supplying Pegasus technologies since they have a lower liquidity ratio of 1.78. The company has been able to move its inventory and it has the highest inventory turnover of 18.25, which is higher than the industry average of 12.5. This means that the company is able to sell more of what it produces within a given time period. The Most Attractive Potential Supplier Reese Corporation is the most attractive potential supplier.

This is because the company is financially stable and they carry the least amount of risk. The company has also been.