7ENT1069 Procurement Strategy Sample
Part 1
In the later period of 2010, Xerox had basically partnered with the Close the Loop, which is considered to be one of the largest recyclers of the world for supplying especially the returns of the cartridges. The recycling of one of the most important raw materials i.e the plastic is also done by the company.
The main purpose of the Close the Loop also centres around the collection of US customer’s items and they mainly recycle the items on behalf of the Xerox Company. The company mainly uses a process which deals with the patented material separation method which mainly aims at recovering all the used materials for the purpose of reuse in the cartridges of the new printers or the plastics related to them.
The process mainly virtually deals with the materials that are returned by the means of certain programs which are mainly beneficially managed (Bor, 2021).
The process of the partnership mainly simplifies all the return processes for all the concerned customers and this mainly allows much more of the stream of the return which is to be recycled into the more useful products.
The supply chain of the closed loop is designed with an aim to recycle the returns and follows a traditional forward process.
The additional supply chain mainly refers to the process of reverse supply chain which mainly includes:
- Product Acquisition: the retrieval of the used product.
- Reverse Logistics: the main process which deals with the planning, implementation as well as controlling the efficient as well as effective inbound flow and the storage of the goods which are basically opposite to the traditional supply chain logistics (Bor, 2021).
- Testing, sorting and disposing: this step deals with the process of disposing the product in a certain manner such as selling them to a broker or to an outlet or landfill.
The recycled products are either found in refurbished forms or are sold again and redistributed.
Part 2
The factors which are to be taken into consideration during the procurement of the Raw Materials are:
- Right amount of Quality: The Xerox Company needs to be sure of the fact that they are procuring the best quality of raw materials at the lowest price to serve their customers.
- Right Quantity: Along with the right quality, it is necessary for the company to strategize the right amount of the raw materials which should cater the company according to the short and long term strategies of the company.
- Right Time of Delivery: The standard quality along with the correct delivery time of the raw materials needs to be assured.
- Right Price: The raw materials should be bought according to the correct market price (Panniello and Garavelli, 2019).
- Right Source of supply: The supplier must be chosen based upon the process of who is giving the most competitive price in the market.
- Right Place of Delivery: The delivery attendant must be sure of the place of the delivery and that the materials are transported in a hassle free manner.
Principles of good practice applied for the supplier:
- The time as well as the money and good amount of energy needs to be given in order to build a strong relationship between the supplier and the company.
- The selection of the vendors needs to be pursued by taking all the business requirements into consideration.
- Every possible detail of the vendor contract needs to be scrutinised at its best so that none of the hidden clauses are identified later (Ardito, Petruzzelli, Panniello and Garavelli, 2019).
- Every kind of flexibility needs to be maintained by the company thereby monitoring their performances and a smooth line of effective communication needs to be maintained.
Part 3
The raw material of plastic needs to be supplied in the United Kingdom.
Suitable areas of Supply:
Some of the best regions of recycled plastics are:
- Germany: Since 2016, Germany has been the highest recycling regions of the world with about 56.1% of the wastes that were produced last year and which contained mostly plastic items (Mogale et al., 2020).
- Austria: According to the data of 2018, Austria holds the second place of recycled items with a total of 53.8% of recycling rate.
- South Korea: In 2018, South Korea recycled about 53.7% of the items.
- Wales: Wales amounted for 52.2% of the reyling rate in 2018.
- Switzerland: Switzerland amounted for about 49.7% recycling rate in 2018.
Advantages of supplying in United Kingdom:
- The United Kingdom has the highest ease of doing business scores in the world and it provides huge opportunities of doing business from manufacturing to IT.
- The taxation system in the UK is quite simple and manageable.
- The UK provides some of the most skilled workers (Waaly, Ridwan and Akbar, 2018).
- The UK also provides a very strong infrastructure or performing business.
- The legal regulations are lower to a manageable degree.
Disadvantages of supplying in the UK:
- The price that is provided by the UK traders are much lower compared to the other countries.
- There might be a sudden dip in the demand and the market is very much unpredictable.
- On the other hand, it will be a pressure for managing the demand of the supply in the highest demand season.
Part 4
Drawbacks of the single sourcing-global sourcing:
- There is an increased level of vulnerability of supply.
- There is an increased risk of interruption in the supply.
- There is always a huge dependency on the business as well as the suppliers.
- The sharing of the information process might sometimes be complex (Ngeno, 2017).
- There lies a higher cost of the regulation of the contract as well as the management along with its execution of the process.
- The lower volumes of orders also reduces the price of bargaining.
The new strategy that can be applied in place of the old strategy is to promote Low Cost Country Sources that are actually required by the business.
In the emergency situation, when the entire inventory of the raw materials are destroyed, the company can follow Low Cost Country Sources, i.e it can order for some immediate supply from the country which gives the lowest price on the supply of the raw materials (Ngeno and Kinoti, 2017). This will be cost effective for the short term and can also help in fulfilling the immediate demand.
References
Ardito, L., Petruzzelli, A.M., Panniello, U. and Garavelli, A.C., 2019. Towards Industry 4.0: Mapping digital technologies for supply chain management-marketing integration. Business Process Management Journal.
Bor, J.K.M., 2021. Green Supply Chain Management Practices and Performance of Food and Beverage Processing Sector in Kenya (Doctoral dissertation, JKUAT-COHRED).
Mogale, D.G., Ghadge, A., Kumar, S.K. and Tiwari, M.K., 2020. Modelling supply chain network for procurement of food grains in India. International Journal of Production Research, 58(21), pp.6493-6512.
Ngeno, K. and Kinoti, J., 2017. Effect of e-procurement on effective supply chain management process in energy sector in Kenya. International Journal of Supply Chain Management, 2(3), pp.18-37.
Waaly, A.N., Ridwan, A.Y. and Akbar, M.D., 2018. Development of sustainable procurement monitoring system performance based on Supply Chain Reference Operation (SCOR) and Analytical Hierarchy Process (AHP) on leather tanning industry. In MATEC Web of Conferences (Vol. 204, p. 01008). EDP Sciences.
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