2. INDEX
PROCUREMENT MANAGEMENT
IMPACT OF PROCUREMENT
MANAGEMENT
NEED OF CHANGE
APPLYING PROCUREMENT
MANAGEMENT IN ANMOL KNITTERS
PROBLEMS IN PROCUREMENT
MANAGEMENT IN ANMOL KNITTERS
SOLUTION
3. PROCUREMENT MANAGEMENT:
Procurement : Choosing your vendors is an important part of the operations management process
because, if your suppliers are unreliable, this can begin major delays in your horde string. There are
many operations management techniques that can help one want their vendors correctly to guarantee
that one to obtain their consignments on time, at right place, and at the right penalty. Particularly for
large operations, this can be a daunting errand. Delegating errands according to dexterity flat and
experience, evaluation, compensation, scheming safely policies, and composing a good helpful
atmosphere are just some of the responsibilities of the operations boss.
IMPACT OF PROCUREMENT MANAGEMENT:
Besides the impressive cost savings, procurement management can also save valuable time and can
streamline the workforce. With procurement systems, many of the steps involved in purchasing are
either not necessary or are automated so that the entire process runs smoother and faster. Also,
because most corporations divide up the purchasing responsibilities among their multiple divisions, they
typically have several staff members who are technically doing the exact same job in different locations.
By centralizing all of a company's procurement needs into a single department or firm, these redundant
job positions can be eliminated. Additionally, the excess office space and equipment can either be
liquidated or used for more productive business endeavors.
In order to achieve these and the other benefits procurement management offers, companies must be
willing to go through many steps. Implementation does require some changes both in technology, in
personnel, and in attitude. Without these changes, the procurement system simply won't be effective.
NEED OF CHANGE:
One of the first of these changes is to adopt a positive sourcing methodology. Many corporations simply
place orders; they don't form relationships with suppliers. While the distinction may not seem great, the
reality is that these sellers are critical components of a business's success, and they need to be treated
that way. The overall goal of a strong sourcing methodology is to achieve a mutually satisfying
agreement that will provide the buyer with the goods he needs at a reasonable price and that will
secure the seller a steady customer in the future.
Another change with procurement is the workforce. Employees who will be dealing directly with
vendors need to be highly trained and experienced in the industry in which the business is involved. For
example, a pharmaceutical company would need to hire individuals who are familiar with the types of
chemicals used in the creation of prescription drugs. By hiring individuals who are experts in their field
and who are then trained in the procurement process of the company, suppliers feel more comfortable
doing business with the buying firm.
With a more centralized approach to procurement, large corporations are also in the position to have
4. their purchasing team specialize in certain areas of procurement. An automobile manufacturer may
have one team responsible for purchasing machinery, another for raw materials, and a third for
temporary employees. This type of specialization would be too costly if all of the purchasing was spread
out across the globe but when dealing with billions of dollars in goods and services being handled in one
area, specialization is almost a necessity.
Tracking suppliers, using reverse auctions, and evaluating costs are all other important parts of the
procurement system. By tracking suppliers, the buyer is able to determine whether or not they
continuously live up to expectations. Through reverse auctions, buyers are able to keep prices lower
while selecting from a wide array of potential sellers. Plus, continually evaluating costs prevents
companies from losing sight of the biggest benefit of procurement management: its cost-effectiveness.
APPLYING PROCUREMENT MANAGEMENT IN ANMOL KNITTERS PVT.LTD
They are one of the leading an ISO 9001: 2000 Certified Company of Fleece Blankets, Madeups, Quilts
and Knitted Fabric. We are in this business since 1964.
They are located in Ludhiana – Punjab, 300 Kms away from New Delhi. Company is totally vertical &
composite production set up with state of the art technology & machineries in Knitting, Dyeing,
Finishing, Printing & sewing imported from Italy, Taiwan, South Korea, Japan and have a capacity of 20
ton per day of fabric in knitting , dyeing & Printing and around 10,000 Pcs of Blankets, Madeups &
Quilts.
This is the same company I took for my term paper, and for the same reason I got a chance to visit the
company to understand and analyze the operations they undertake for the manufacturing of their
products.
Since I have already visited this company, that is why I chose this company for my assignment on
“analyzing new area of operations “.
PROBLEMS IN PROCUREMENT MANAGEMENT IN ANMOL KNITTERS:
All yarn is purchase from standard reputed mills. All quality parameters are checked & inspected
before usage.
Yarn is the main product that they procure from their suppliers. Their suppliers are located in
Himachal, and that’s the main reason of sometimes delay in the consignment order.
They have separate departments which take care of different product range they have, and thus
in the same way the raw materials needed for those products are managed by those separate
department, thus leading to decentralization and therefore resulting in wastage of resources
and the work force.
5. Unspecialized workforce to deal with the suppliers, thus resulting in bitter relations’ with the
suppliers.
SOLUTION:
They should have only 1-2 main suppliers for their yarn which helps them to avoid the delay and
ease of communication.
They should have centralized department to deal with the procurement management.
They should have trained and skilled employees to deal with the suppliers and the employees
who are well educated about the products.
