Procurement Of Seat Fabric, Multimedia Player And Power Window Buttons

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1. Introduction The case study, presented to the board in April, contained a preliminary analysis and recommendations for the procurement of seat fabric, multimedia player and power window buttons in the new Yaris model. The purpose of this report is to further explore factors, that influence procurement at Toyota, so that a comprehensive plan can be presented for board approval. The components used to assemble a completed vehicle have characteristics that can potentially be exploited, it is therefore necessary to explore category management as a concept for any possible benefits to procurement strategy. Additionally, it is important to define quality, the expectations and standards required at Toyota and the methods, philosophies and…show more content…
Finally, procurement strategies and techniques for managing suppliers, selection of product category placement, product life cycle, trend analysis and enhancement of process efficiency will be explored. The combination of these elements will be used to form a procurement plan that will be recommended for adoption by the board. 2. Category management Category management is a strategic business initiative, focusing on similar products, that can have influence over or can be substituted for each other, rather than brand or product lines (Dussart 1998, p.51). Traditionally, brand orientation was dominant in purchasing, particularly in retail. Profit performance was usually dependant on quantity discounts and brand based sales and merchandising, to move excess inventory. Alternatively, category management concentrates on the performance of the entire category (Basuroy, Mantrala & Walters 2001, p.16) The role of the category manager is to control and manage all aspects of the product category with the goal of delivering greater value and lower costs (Dussart 1998, p.54). Essentially, they are responsible for the integration functions such as pricing and procurement of all brands in the category and developing plans, with suppliers and other stakeholders, to create mutually beneficial category based outcomes (Basuroy, Mantrala & Walters 2001, p.16). There are a number of steps necessary to establish a category and develop a
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