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 ManagementA solution to Procurement Flows of BDX Company (Ltd)2/13/20091

2. Group MembersV. DinushaS. SaatvigaS.Y.Y.D. WickramasingheK.T. WickramasuriyaD. Wijethilake2/13/20092

3. ContentsIntroductionBDX Current Procurement ProcessIssuesSolutionCatalystsAlternativesComparison & Proposed SolutionAdded Values Current Vs ProposedConclusionReference2/13/20093

4. IntroductionBDX isA leading apparel exporter in SL Manufactures “leisurewear” for US based brandsImports from China, Hong Kong & India40 % of Raw Raw Material Procurement isHandled by MerchandisingteamBeing questioned by ManagementteamDelaysMiscommunicationsPayment Disputes2/13/20094

5. Existing Procurement Process2/13/20095BDXSupplier1. Raw Material RequirementPAS2. Download PDF PO3. Email / fax PDF PO (Delivery Date)Merchandiser4. Confirmed Delivery Date via email /fax /phone5. Replicate PO6. Sales Order8.GRN7. Raw Material + InvoiceWarehouse9. Invoice10. Compare PO, GRN & InvoiceFinance11. TT

6. Issues2/13/20096

7. SolutionCatalystsSourcing Strategy Expedite the procurement processCentralHubPartner Collaboration Information SharingWorkflow ManagementStreamline standard tasks through automationDecision points & Conditional Requirements to trigger eventsDistributed Responsibility & AccountabilityReal Time status update of workflows & associated documentsPending / Delivered / Accepted, etc2/13/20097

8. Alternative 01Sourcing Strategy – JIT Centralized HubManufacturerSuppliers T1Suppliers T2CustomerWorkflow ManagementCustomer -> Supplier T22/13/20098

9. Alternative 02Sourcing Strategy – VMICentralized HubManufacturerSupplier T1Workflow ManagementManufacturer -> Supplier T12/13/20099

10. Alternative 03Sourcing Strategy JIT – High Value, Low Volume itemsVMI – Low Value, High Volume Items Centralized HubManufacturerSuppliers T1Suppliers T2CustomerWorkflow Management Customer -> Supplier T22/13/200910

11. Comparison11

12. Proposed Architecture2/13/200912Central HubCustomer1.Order Placement3.Order Trigger3.Order Trigger2. MRP3. Order Prediction8. Compare PO, GRN, InvoiceBDXT1 Supplier(s)4.Purchase DetailsPurchase OrderMerchandiser5.ConfirmationSales OrderPAS6.Raw MaterialInvoice7.Verify Raw Material AcceptanceWarehouseGRNPayment Gateway9.PaymentFinanceT2 Supplier(s)

13. Current Vs Proposed2/13/200913

14. Benefits & Mitigated RisksStreamline Existing Procurement ProcessMinimize DelaysElectronic Integration of dataAutomation of Business PracticesOn-time & Error free payments through automationOnline PaymentEnhance Communication through Effective InformationFlow (Suppliers, Departments)TimelyAccurate Paperless Proactive Reminders on Delivery DatesAutomated VerificationsTracking & Monitoring the Procurement ProcessBackup System and Recovery Processes2/13/200914

15. Conclusion2/13/200915More Profit

16. ReferenceIntegrated end-to-end ePocurement: the foundation of spend management success http://www.enporion.com/media/whitepapers/End-to-End-Procurement_Final.pdfhttp://sspcatalog.sap.com/catalog/results.jsp?ps=1&Solutions_Platform_Lookup=R1-R6&Certification=R42/13/200916

17. Thank You !2/13/200917