Module 2 SLP: Computer Hardware
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Module 2 SLP: Computer Hardware
Selecting the right vendors entails a lot more than simply looking at the price lists. The decision would be dependent on various factors for instance reliability, quality, service and value for money. How the company weighs up the significance of each of these different factors would be based upon the strategy and priorities of the business (Friedl & Wagner, 2012). This report provides a comparison of 3 hardware vendors in order to establish the hardware option that is actually more economical. It is notable that the pricing information is needed before ten desktop computers can be purchased for a new unit in my organization’s division. The prices would be obtained from 3 suppliers on the internet who have good reputation.
The table below illustrates the unit cost of the computer hardware devices from each of the three reputable vendors.
Table 1: comparison of the unit cost of the hardware items
Hardware ListVendor 1/Unit costVendor 2/Unit costVendor 3/Unit costMonitor$95.00$132.99$88.95Desktop$179.95$173.50$175.95Speakers$17.99$15.95$22.95Mouse$10.95$15.95$12.99Keyboard$23.90$30.99$33.95Printer$165.95$195.99$170.00MS OS (Windows 10)$132$119$119MS Office Suite$149$99$120Total Cost$774.74$783.37$743.79
As illustrated in the table above, it would be economical to purchase from Vendor 3 and not from either Vendor 1 or Vendor 2. Although some hardware items sold by Vendor 3 are the most expensive of the three vendors, for instance keyboard and speakers, Vendor 3 is more economical when the total cost of all the items are added up. The total cost for purchasing the hardware items from Vendor 3 is $743.79, which is actually less expensive than $774.74 and $783.37 when purchasing from Vendors 1 and 2 respectively.
The right vendor is the one who provides the most appropriate goods at the most appropriate prices and within the suitable time frames for the company’s specific business needs (Costantino et al., 2011). Affordability is an important consideration for selecting vendors. If a business organization is focused on managing its economics, the vendor who is competitively priced is an attractive choice, in this case Vendor 3. Even so, low-priced, inexpensive option does not at all times represent the best value for money. If the vendor supplies products that are poor in quality, then the company could incur additional costs for replacements and returns, and risk losing business with the interruptions and delays which result (Li, Sethi & Zhang, 2013). All in all, the company has to decide how much it is ready to pay for the computer hardware supplies and the balance the company wants to strike between service, quality, reliability and cost.
The purchasing function in any organization involves not just getting the best price. The purchasing function also entails buying the best value, meaning that the company buys: the right quality and quantity of the product; at the best cost; from a vendor who is dependable (Hu, Munson & Fotop...