NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Procurement Management
Internal Assignment Applicable for December 2020 Examination
Assignment Marks: 30
1.
A chain of premium jewelry brand is launching new business in India. Being a global
chain,
they want to maintain same look and feel of global store experience. It is
obviously
not
possible to get everything from global vendors as cost is also a criteria. As
Purchasing
Buyer
you have been asked to procure major capex for the stores chain. Explain with
detailed
steps how you will approach this assignment focusing on what factor will be
different
as against typical raw material procurement? What challenges one may face in
Capex
Procurement? Take examples of Capex you can think of in above scenario &
explain
process around it in your answer accordingly.
(10
Marks)
2.
Amidst Covid with global logistics opening up slowly, it’s important for your
organization
who is in plastic sheets manufacturer to get their raw material – resins, the
main
ingredient in this molding process from Turkey. The raw material is urgently
required
now as your organization has lots of order to deliver. While market has open
yet
movement
involved lot of risk like delayed consignments etc. What Inco terms once
should
select to ensure goods are delivered on timely basis and till factory premises?
Can
choosing
right Inco terms also help organization to save money in these difficult times?
(10
Marks)
3.
Case Study
INTRODUCTION
M/s
GETWELL is a privately owned big pharma player. Being Pharma company
selection
of raw material and packaging material is quite stringent both in terms of
specification
& dealing with same vendors for years now. M/s GETWELL is a listed
organization
who strongly believes in innovation. Their R&D team continuously works
on
getting customer latest product and hence don’t want to change old proven ways
of
working
under name of quality.
M/s
GETWELL has grown since 1980s into one of the top 5 Pharma players in India.
The
company has an annual turnover of $750 million and employs 2,500 staff,
including
a
centralized purchasing function at head office. From past 3 years company
growth has
been
almost flat.
A
newly hired senior purchasing manager Jacob has been appointed at head office,
who
is
responsible for bringing change in procurement practice and yet not sacrificing
savings.
During
his interview he was also told that last year during annual vendor meet lot of
vendors
raised concern of need of transparency in procurement process. They also
mentioned
that they get lot of enquiries but even after ensuing proposal and sample
submission
as per process, they never get new orders. These vendors are in database of
other
Pharma companies and are quite keen to work with GETWELL.
Scenario
Jacob
is an experienced and qualified purchaser who has worked across the public and
private
sectors for the last decade. In starting days he is investing lot of time to
understand
key
categories and the critical vendors. He is simultaneously working on updating
Purchase
Policy.
While
undergoing few transactions, Jacob could identify issue in sample approval
process.
While engineering teams evaluate lot of samples of new vendors, doesn’t
provide
logical reason for rejecting new vendors even though samples look to fit in
specification.
Moreover, organization still followed seal envelope quotation process for
most
of the critical procurement, which takes lots of time. Most of the time cycle
of
sourcing
goes so long that key launches are often closed in haste and hence order are
placed
with same incumbent vendors with much higher cost.
Meanwhile,
Jacob highlight these Gap to Head of Purchase department during his
quarterly
review discussion. During the discussion Jacob happen to mention that while
organization
has progressed but still follow old ways of procurement. These progress
delays
over cycle and also impact new launches. He also mentioned risk that
organization
is
taking by depending on few vendors for years now. Jacob also highlighted how
eProcurement
process can help them to resolve some of these issues. The Purchase head
is
quite surprise to understand that changes in process can bring both speed and
transparency.
And is also worried that cost should not be the only criteria to select new
vendors
The
Head of Purchase Department has asked him to evaluated overall process and come
up
with his recommendation. (The information in this case study is purely
fictitious and
has
been prepared for assessment purposes only. Any resemblance to any organization
or
person
is purely coincidental.)
a.
Put yourself in shoes of Jacob, mention challenge that you can identify as a
Purchase
Manager
in the Case Study above? How can eProcurement help you to improve you
manage
to resolve them on longer term? (5 Marks)
b.
The
Purchase Manager Jacob wants to introduce stringent supplier selection criteria
in
purchase
process while evaluating vendors. What are the steps he should value in this
case
study? (5 Marks)
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