This document proposes a solution to streamline the procurement flows of BDX Company Ltd. BDX currently imports raw materials from China, Hong Kong, and India, with the merchandising team handling 40% of procurement. This has led to delays, miscommunications, and payment disputes. The proposed solution involves implementing a centralized hub to facilitate information sharing and workflow management between BDX, suppliers, and customers. This would expedite the procurement process, automate standard tasks, provide real-time status updates, and enable online payments to minimize delays and errors. The centralized hub would integrate supplier and department data to enhance communications and tracking across the procurement process. This is expected to result in a more efficient, accurate, and paperless system

1. Supply Chain Management A solution to Procurement Flows of BDX Company (Ltd) 2/13/2009 1

2. Group Members V. Dinusha S. Saatviga S.Y.Y.D. Wickramasinghe K.T. Wickramasuriya D. Wijethilake 2/13/2009 2

3. Contents Introduction BDX Current Procurement Process Issues Solution Catalysts Alternatives Comparison & Proposed Solution Added Values Current Vs Proposed Conclusion Reference 2/13/2009 3

4. Introduction BDX is A leading apparel exporter in SL Manufactures “leisurewear” for US based brands Imports from China, Hong Kong & India 40 % of Raw Raw Material Procurement is Handled by Merchandisingteam Being questioned by Managementteam Delays Miscommunications Payment Disputes 2/13/2009 4

5. Existing Procurement Process 2/13/2009 5 BDX Supplier 1. Raw Material Requirement PAS 2. Download PDF PO 3. Email / fax PDF PO (Delivery Date) Merchandiser 4. Confirmed Delivery Date via email /fax /phone 5. Replicate PO 6. Sales Order 8.GRN 7. Raw Material + Invoice Warehouse 9. Invoice 10. Compare PO, GRN & Invoice Finance 11. TT

6. Issues 2/13/2009 6

7. Solution Catalysts Sourcing Strategy Expedite the procurement process CentralHub Partner Collaboration Information Sharing Workflow Management Streamline standard tasks through automation Decision points & Conditional Requirements to trigger events Distributed Responsibility & Accountability Real Time status update of workflows & associated documents Pending / Delivered / Accepted, etc 2/13/2009 7

8. Alternative 01 Sourcing Strategy – JIT Centralized Hub Manufacturer Suppliers T1 Suppliers T2 Customer Workflow Management Customer -> Supplier T2 2/13/2009 8

9. Alternative 02 Sourcing Strategy – VMI Centralized Hub Manufacturer Supplier T1 Workflow Management Manufacturer -> Supplier T1 2/13/2009 9

10. Alternative 03 Sourcing Strategy JIT – High Value, Low Volume items VMI – Low Value, High Volume Items Centralized Hub Manufacturer Suppliers T1 Suppliers T2 Customer Workflow Management Customer -> Supplier T2 2/13/2009 10

11. Comparison 11

12. Proposed Architecture 2/13/2009 12 Central Hub Customer 1.Order Placement 3.Order Trigger 3.Order Trigger 2. MRP 3. Order Prediction 8. Compare PO, GRN, Invoice BDX T1 Supplier(s) 4.Purchase Details Purchase Order Merchandiser 5.Confirmation Sales Order PAS 6.Raw Material Invoice 7.Verify Raw Material Acceptance Warehouse GRN Payment Gateway 9.Payment Finance T2 Supplier(s)

13. Current Vs Proposed 2/13/2009 13

14. Benefits & Mitigated Risks Streamline Existing Procurement Process Minimize Delays Electronic Integration of data Automation of Business Practices On-time & Error free payments through automation Online Payment Enhance Communication through Effective InformationFlow (Suppliers, Departments) Timely Accurate Paperless Proactive Reminders on Delivery Dates Automated Verifications Tracking & Monitoring the Procurement Process Backup System and Recovery Processes 2/13/2009 14

15. Conclusion 2/13/2009 15 More Profit

16. Reference Integrated end-to-end ePocurement: the foundation of spend management success http://www.enporion.com/media/whitepapers/End-to-End-Procurement_Final.pdf http://sspcatalog.sap.com/catalog/results.jsp?ps=1&Solutions_Platform_Lookup=R1-R6&Certification=R4 2/13/2009 16

17. Thank You ! 2/13/2009 17