Implementing change through a supplier evaluation process

Abstract

With increased global competition, companies find that they must adjust and adapt to a supply chain model that incorporates more strategic suppliers. Pratt & Whitney, a division of United Technology Corporation, is no different as it seeks to streamline selection of suppliers to satisfy their business and manufacturing needs. In addition to improved product costs, low cost sourcing also expands its global footprint as emerging markets, such as China and India, continue to grow at phenomenal rates compared to Western markets. This research focused on development of a supplier evaluation process for Pratt & Whitney to meet its business goals. This introduces a change to the way that the company has historically operated. The first focus is to understand how to implement change within the company setting by introducing a formal supplier evaluation process. The second is to understand develop and refine the process to be utilized within Pratt & Whitney. This thesis focuses first on how to implement change within a company. The existing culture of the company must be evaluated to determine the approach to be taken. Within Pratt & Whitney's culture, research indicates that support from management and key influential personnel within the company are critical in producing a true change in the way the company conducts itself. Three different case studies are discussed that highlight the impact of this support on the successful implementation of change within the corporation. Secondly, this thesis researches the design and development of the supplier evaluation process. The most important aspect is to interview and listen to the needs of the customer. The success and failure of the system rests on being useful, intuitive, and simple. Through constant feedback, the tools were continually improved. In addition, information technology can be an enabler for business processes. With a well-designed system, IT can provide a secure, robust, scalable system for use in large corporations, like Pratt & Whitney.