The case describes the situation faced by the vice-president of A-CAT Corp. The company was a mid-sized manufacturer and distributor of domestic electrical appliances, largely catering to the price sensitive rural population. The firm operated two medium-sized facilities in one of the remote districts in Vidarbha. A-CAT’s manufacturing units had been in operation since 1986. A-CAT manufactured a wide range of electrical appliances including TV signal boosters, transformers, FM radio kits, electronic ballasts, battery chargers and voltage regulators. The focus was on their flagship product, the VR500 voltage regulator. The challenge was to select suppliers without offending the stakeholders involved in the process. The core issue was to come to a correct decision -- one that best suited company needs. The plan set by the team was to identify potential suppliers/vendors with their attendant strengths and weaknesses and to do so in a well-documented and structured manner.
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