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Sourcing and Materials Management Presentation
- 1. Procurement and MaterialsManagement MGT 4333.01 Kelsey Holmes Nate Landreth Sean McDermott Jeremy Carter April 26, 2010 SOURCING
- 3. Sourcing Sourcing Stages Examples • RecreationalBoating Industry • CEVA Logistics Summary
- 4. Sourcing Sourcing Stages Examples • RecreationalBoating Industry • CEVA Logistics Summary
- 5. Sourcing Stages Discovery EvaluationSelection Development Management
- 6. Discovery Stage Helpsbuyersdeterminepotentialsuppliers Supplierweb sites Supplier information files Supplier catalogs Trade Registers & Directories Trade Journals Phone Directories Filling of Mailing Pieces Sales Personnel Trade Shows Company Personnel Other Supply Management Departments Professional Organizations Discovery Evaluation Selection Development Management
- 7. Evaluation Stage 3Questions Is the supplier strategically important? Is the product or service being purchased considered strategic? Are there other short-term alternatives available? Discovery Evaluation Selection Development Management
- 8. Evaluation Stage -Evaluation Methods Supplier Surveys Financial Condition Analysis Third Party Evaluators Evaluation Conference Facility Visits Capability Analysis Quality Capacity Management Service Flexibility Information Technology Discovery Evaluation Selection Development Management
- 9. Evaluation Stage -Summary Summary Analysis Weighted-factor analysis development of the factors and weights assign a rating based on the findings Discovery Evaluation Selection Development Management
- 10. Selection Stage Method Bidding Negotiations Combination Invitation for Bids or Request for Proposal Discovery Evaluation Selection Development Management
- 11. Development Stage Mostover looked Can have the greatest impact on the buyer Work together to improve Product Processes Quality Costs Profits Discovery Evaluation Selection Development Management
- 12. Management Stage EnsuresPerformance Analyze and verify capabilities and results Discovery Evaluation Selection Development Management
- 13. Sourcing Sourcing Stages Examples • RecreationalBoating Industry • CEVA Logistics Summary
- 14.
- 15. Facts Average owner’sincome is $100,000 a year Past Production motto of new boats was to “build them as fast as possible they would sell” Industry thought it was immune from the economic swings of “outside market” Rising cost of living Recession and less spending
- 16. Examplesof effecton industry Genmar - Ranger series 28 percent decline between 2007 and 2008 other boats lines were down 55 percent from normal levels Brunswick manufacturer - Bayliner, Crestliner, Lund, and Mercury boat motors Half of the factor shut down only ran about 50 percent of it marina operation in 2008 National boat sales down 65 percent from the first quarter of 2009 to the same quarter in 2008
- 17. What lead tocurrentboatshortages? Caused by Dealers and Sales Representatives Assumed people would buy in good and bad markets Bad forecasting and measurements of inventory needed Lack of attention to demand, price, quality, cost of the end product Lack technology advancement used in other industries (SAP) Lack of feedback from consumers (CRM) Local legislation and environmental regulation
- 18. Results Increases productionaccuracy Less inventory, manufacturer and dealers Increase ability to meet consumer desires (customer feedback) Lowers costs More affordable for consumers Increases sales Increases profit margins
- 19. Sourcing Sourcing Stages Examples • RecreationalBoating Industry • CEVA Logistics Summary
- 21.
- 22. Industry Norms Suppliersare selected based on price, quality, and availability Suppliers compete for CEVA’s freight Guaranteed capacity can help CEVA attain low contract rates
- 23. Chinas Supply Problem Freight forwarders are competing for limited airline space Customers demand on time delivery Airlines can increase rates
- 24. Solution CEVA should consolidateshipments and guarantee enough capacity every day to acquire low contract rates with a single airline into China.
- 25. Plan of Action Accurately forecast demand for future shipments Consolidate freight at a single location for export Successfully distribute orders at final destination Key Competencies for Success • Communication • Coordination • Cross functional teams • Integration of purchasing and operations managers
- 26. Sourcing Sourcing Stages Examples • RecreationalBoating Industry • CEVA Logistics Summary
Editor's Notes
- #17 Genmar - Ranger series 28 percent decline between 2007 and 2008 other boats lines were down 55 percent from normal levels Brunswick manufacturer - Bayliner, Crestliner, Lund, and Mercury boat motors closed or shut down around half of it 28 factories in 2007 only ran about 50 percent of it marina operation in 2008 overall the nations boat sales in this segment were down almost 65 percent from the first quarter of 2009 to the same quarter in 2008
- #18 caused by Dealers and Sales Representatives assumed people would buy in good and bad markets bad forecasting and measurements of inventory needed lack of attention to demand, price, quality, cost of the end product lack technology advancement used in other industries (SAP) lack of feedback from consumers (CRM) Local legislation and environmental regulation New restrictions on boats in various waterways, dictating production and sales of watercrafts in certain areas push by organizations such as the National Association of State Boating Law Administration example: Florida’s push for more restrictive boating while drinking (laws like Operation Dry Water), negative influence on potential boat buyers