Essay about Procurement at Betapharm Corp. (a)

Additionally, a dual-supply strategy should be considered so that the company can use a hedging tactic to minimize the cost. Unifine Richardson only used one supply source, Harrington Honey. Depending so heavily on one supplier left the company vulnerable to risk. “The best supply chains identify structural shifts, sometimes before they occur, by capturing the latest data, filtering out noise, and tracking key patterns. They then relocate facilities, change sources of supplies, and, if possible, outsource manufacturing” (Lee, 2004). The company needs to look for alternative suppliers that acquire their honey from Mexico. The source location will not have a significant impact in their operations and UR will keep its delivery on time.

Applying the new policy to rationalise BAL’s supplier base over six years, BAL achieved direct cost savings by decrease the base of supplier, and the next target was 600. In order to verify whether BAL’s suppliers were authorised and qualified to produce the necessary parts, BAL needed to ensure any “flyaway” items purchased or manufactured had complete traceability.

Sourcing – this involves investigating and qualifying potential suppliers and evaluating the qualifying suppliers’ bid.

From the case study, the processes above are identified as those that led the group to coming up a final decision on the most appropriate supplier to provide the software to the organization. The key guiding factors in selection of the final provider was based on three key factors. These are: ability to speed time to market, ability to reduce costs, and ability to improve product quality.

On reflection of this decision it is now clear to me that more time should have been spent researching product availability and assessing alternative suppliers and their capacity to support such a project. In future to ensure all alternatives have been thoroughly investigated more time should be assigned for the planning stage where all possible alternatives could be identified; following this, the procedure Janis and Mann (1977) define as vigilant analysis could be used to ensure a thorough consideration of each alternative is achieved. This procedure uses a balance sheet approach to ensure a systematic evaluation of each alternative is being achieved with alternatives ranked from most desirable to least desirable.

The purpose of this proposal is to improve or change the vendor selection process to purchase of goods and services from Third Party Company for production of company products. In the company, the vendor selection process is managed by a project manager with the help of purchasing department. This includes the following process:

Additional companies are managing spend categories that now cover the global economy. Procurement experts are hence taxed with having to cope with many spends projects within regions where reliable supplier choices are restricted. This can make problems logistically and needs the procurement personnel to be better skilled plus suppler.

This study aims to provide the reader with an analysis of the Intercontinental Hotel Group (IHG) global operations. In order to do so the author will firstly provide industry analysis of the hotel industry. The industry analysis will include, the identification of, key dynamics of the industry, the major players , the drivers of change in the industry, the direction the industry is moving in along with identifying what is required in industry to gain competitive advantage. The author will then proceed to discuss the chosen organisation, that Intercontinental hotels group. The author will provide Company Analysis of the business which will consist of a discussion on the Business Model ,the Revenue Model ,the USP, the company’s position in the industry and the future strategy of the company. The author will conclude with a discussion and draw recommendations from findings

“The performance of hotels in each country therefore affects the revenues and costs of other hotels within the network”

According to Intercontinental Hotel Group Website (2009), “the global hotel market has an estimated room capacity of 18 million rooms.” On this global hotel market, brand hotel has 45% of the total market. Indeed, the six major international hotel groups are estimated to 41% of the branded rooms and 18% of the total market. Promotional strategies and plans are critical successful factors for International hotel groups in this market share.

Nowadays centralization and integration are common for hotel industry all over the world. Almost all hotel chains regardless of ratings feel pressure of hard competition and try to find any ways to increase their potential.

PSEG defines its value chain by carefully choosing diverse suppliers that support the company’s mission to provide safe, sustainable and environmentally sound products to its customers. To define, shape, and help to ensure that the entire value chain supports PSEG’s overarching strategic plan, PSEG employs a strict and rigorous application and vetting process for all of its suppliers. Suppliers must meet the initial thresholds of being: Capable, Compatible, Competitive and Committed. Each supplier in the chain must show some degree of success in business, suppliers must also be compatible with PSEG’s culture , and are able to compete with others in the industry based on costs, and are fully commitment to supporting PSEG’s mission to

All projects involve the need to determine whether the project work will be done in-house, external to the organization (outsourced), or a combination of the two. This is called “make-or-buy analysis” and is an essential part of project planning, as well as a tool/technique integral to procurement planning

There are capacity balancing problems. The way that you carried your supplier manufacturer relation previously gets disturbed and therefore working with the same supplier under the same environment gets a little difficult.

Because of rising international competition, slower growth rates, decreased population growth, and oversupplied and mature markets, it is hard for hospitality firms to increase their market share (Tepeci, 1999). A recent example of a take-over in this sector is Bizztravel. In their own words: it could no longer compete with other tour operators. It is easy for today’s consumers to switch among different firms (Liu, 2007).