Advantages Of CSDP

Westminster Company is a giant Global manufacturer of health products whose brand has been recognized by the world. As the company they have three different operations which produce and distribute different product lines. Their main strategy on which they are working and which is a major success for them is decentralized management. Now they are re-evaluating their traditional supply chain strategy because the company is getting too much pressure from their large domestic’s customers and global customers. Now the company has to study on

{Build the Supply Base: supplier selection1. supplier evaluation- find potential suppliers, supplier certification (qualification, education, certificationISO 9000,14000). 2. Supplier development- integrate supplier in system, quality require, product specs, schedule/delivery, procurement polices, training, engineer/production help, information transfer procedures. 3. Negotiation- significant element, strategies: Cost based price model (open books to supplier, based on time and materials) Market based price model (based on published, auction, index prices: commodities) Competitive bidding (most common, no longterm relationship, request for rfq). 4. Contracting- share risks, benefits, incentives. Centralized purchasing, E procurement (online catalogs/exchanges, online auctions).} Logistics MGT- obtain efficient operations through integration of all material acquisition, movement, and storage activities. Frequent for outsourcing, allow competitive advantage from reduce costs and improve customer service. 1.Shipping systems: truck(flexible, moves majority manufactured goods) rail( large loads, containers) Airfreight( fast/flexible light loads, expensive) water( used for bulky low value cargo, oldest way of transportation) Pipelines( transport oil, gas,

The Bargaining Power of Suppliers (Moderate): Most of the industry’s products are sourced and manufactured by a network of third parties. The supplier group is diluted compared to the industry; KMD alone has over 45 suppliers. There is credible threat of suppliers adopting forward integration resulting in loss of major suppliers and emergence of new competitors for the industry. Highly effective and specialised products will pose high supplier switching costs for industry firms.

In this assignment I will be writing a formal report that will explain a typical procurement process, I will outline a variety of methods of supplier reimbursement and contract relationships; I will also outline the pros and cons of each contract type. As well as this, I will explain a typical supplier selection process through the use of Carters 10 C’s and a typical selection process model.

Although competitive bidding will continue to be used, especially in the public sector, to ascertain market prices for non-strategic items, many of these items will be outsourced to third-party buyers or consortia to conduct the bidding. Moreover, organizations will continue to purchase most non-strategic products and services under master contracts, some of which will be negotiated by consortia that have leveraged and buying expertise. A trend is expanding for the continued use of third-party purchasing by primarily private sector firms pursuing all forms of competitive advantage possibilities.

The manufacturing sector in South Africa’s economy continues to hold a significant share of the economy

The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry. Toyota as a name, a company, and as a brand has become synonymous with Quality.

In spite of an unpredictable economy, African entrepreneur ideas are responsible for many changes that you will see in 2017. Inasmuch as enterprise creates opportunities for others, I won't lie, the path is a lonely and imperfect one. Although this may be true, the rewards are well worth the long nights and maxed out credit cards.

It is quite challenging to discuss about procurement management without stating the importance of its strategies. There are four main basic procurement strategies that serve different functions within a procurement management. To begin with, a “Partnership” strategy focuses mainly on constructing mutual commitment in long term relationship with suppliers. While a “Secure Supply” strategy aims to secure short and long term supply while reducing risk from suppliers. In addition, a “Category Management and E-Procurement solutions” serves as a tool to reduce logistic complexity, improve operational efficiency, and attempts to reduce the number of suppliers. Lastly, a “Competive Bidding” strategy emphasizes on obtaining the “Best Deal” for short term transactions with suppliers.(van weele) Each of these four strategies involves a unique purchasing methodology, which implies that the complexity is embedded in an individual strategic implication. Therefore, it requires different tools to accomplish the specific strategical characteristics. A business entity may need to support and execute procurement decisions with other strategic apparatus with analytical methods, including market analysis, uncertainty analysis, price forecasting, supplier relationship and along with others.(Harvard)

2. It is challenging to design and operate a supply chain so that total systemwide

Synergy should be encouraged between the two departments, as they are working towards the same corporate goal. In order to update Dynamic’s supply management policy, the company should start to standardize their processes. For the newly awarded contract, we should standardize the process of finding a supplier and standardize testing used for supplier evaluation. By putting all suppliers against the same standards, you should be able to determine which supplier can achieve all your requirements. The supplier should be able to produce a product that meets our company’s standards. In the end, after improving these processes, we should award a long-term contract to whoever we determine to be the best supplier because it is a brand new contract. The longevity of the contract should be determined by the supplier’s performance. There are several benefits to standardizing our processes, such as uniform quality, reduced transaction and purchase costs, and improved inventory management. All these reductions and improvements can be redistributed through the company, enabling us to continually improve. This testing had been done for all suppliers, but the Engineering department decided to solely consider Advanced Wires only, which goes against strategic management policies.

Being one of the biggest technological companies in the world, HP 's products are by nature innovative products, which usually have short life cycles and require the introduction of a steady stream of newer innovations to keep imitators at bay. Their market is uncertain and suppliers in this context must be chosen for their speed and flexibility, not for

The superimposing factor that gives South Africa such an advantage over other prospective African business environments is that it possesses of a very powerful and sophisticated vantage-point geographically. South Africa is strategically located for manufacturing and exportation into several regions globally and can be an unmitigated platform for MNC’s who may be interested in a venture within this region. The important advantages include regional competitiveness, combined with reduced operational costs and a significantly prominent market access (Safrica.info, 2011).

Until the firm gets the competitiveness position, it needs subsidiary in R&D and finance for company operation. However, after getting the position, the firm relies on the government in its sales promotion, that is, along with the company growth, the private firm has changed its strategic resource that the government subsidy is utilized.

Marked by strong growth rates and an ever expanding economy, the African continent is bidding to attract investors and capital from abroad. Increasingly, civil society, and especially women are keen to partake in the growth process through entrepreneurial mobilisation. Examples of individual and collective successes are abound.