To understand the escalating importance of logistics and supply-chain management as crucial tools for competitiveness.
To learn about materials management and physical distribution.
To learn why international logistics is more complex than domestic logistics.
To learn why international inventory management is crucial for success.
Supply Chain Management, Sourcing Pricing and Procurement Process ,
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings
how to measure the performance in supply chain and in logistics. Special tool bench marking is used to measure the performance. for this key indicator and standard are identified.
To understand the escalating importance of logistics and supply-chain management as crucial tools for competitiveness.
To learn about materials management and physical distribution.
To learn why international logistics is more complex than domestic logistics.
To learn why international inventory management is crucial for success.
Supply Chain Management, Sourcing Pricing and Procurement Process ,
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings
how to measure the performance in supply chain and in logistics. Special tool bench marking is used to measure the performance. for this key indicator and standard are identified.
Strategic supply chain management and logisticsBhavi Bhatia
Thanks to all my readers. It gives boost when I get calls from my readers and am always happy to revert back to my followers and readers. I am sorry if I am unable to reply to all the e-mails due to my busy schedule.
Contact me for any type of assignments help(nominal charges).
Thanks and Regards,
Er. Bhavi Bhatia
e-mail: bhavi.bhatia.411@gmail.com
Phone: +91-7696003714, +91-9814614666
A detailed presentation on SUPPLY CHAIN MANAGEMENT OF AGARBATI INDUSTRYDurgadatta Dash
A detailed presentation of Supply Chain Management of Aggarbati industry including five forces model, CPFR, Krailjaic matrix, CRM techniques, the 3 A s, IT applicability, reverse logistics, balanced score card etc.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
Generally, the key aspects of the Supply Chain Management system are Purchasing, Planning, and Logistics. Sometimes Life Care Logistic is separate, and procurement may be included with Purchasing, depending upon how location-specific the procurement activities are.
the presentation is about managing coordination between the supply chains for fast movement of resources.factors affecting the coordiantion in supply chain.
Top technology trends in supply chain & logistics industryArindam Bakshi
Technology plays a very important part in determining the success of a supply chain. This e-book is primarily meant to inform you about the present day technologies that are heavily involved in determining the efficiency and productivity of the logistics and supply chain industry.
Untuk memilih vendor/supplier yang dapat diandalkan dengan produk terbaik & jasa, spesifikasi yang tepat, kualitas yang tepat, ketepatan waktu pengiriman, layanan terbaik, dan juga harga yang terbaik, maka perusahaan harus melakukan proses seleksi dan evaluasi vendor/supplier secara komprehensif diukur dengan metode yang tepat.
Strategic supply chain management and logisticsBhavi Bhatia
Thanks to all my readers. It gives boost when I get calls from my readers and am always happy to revert back to my followers and readers. I am sorry if I am unable to reply to all the e-mails due to my busy schedule.
Contact me for any type of assignments help(nominal charges).
Thanks and Regards,
Er. Bhavi Bhatia
e-mail: bhavi.bhatia.411@gmail.com
Phone: +91-7696003714, +91-9814614666
A detailed presentation on SUPPLY CHAIN MANAGEMENT OF AGARBATI INDUSTRYDurgadatta Dash
A detailed presentation of Supply Chain Management of Aggarbati industry including five forces model, CPFR, Krailjaic matrix, CRM techniques, the 3 A s, IT applicability, reverse logistics, balanced score card etc.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
Generally, the key aspects of the Supply Chain Management system are Purchasing, Planning, and Logistics. Sometimes Life Care Logistic is separate, and procurement may be included with Purchasing, depending upon how location-specific the procurement activities are.
the presentation is about managing coordination between the supply chains for fast movement of resources.factors affecting the coordiantion in supply chain.
Top technology trends in supply chain & logistics industryArindam Bakshi
Technology plays a very important part in determining the success of a supply chain. This e-book is primarily meant to inform you about the present day technologies that are heavily involved in determining the efficiency and productivity of the logistics and supply chain industry.
Untuk memilih vendor/supplier yang dapat diandalkan dengan produk terbaik & jasa, spesifikasi yang tepat, kualitas yang tepat, ketepatan waktu pengiriman, layanan terbaik, dan juga harga yang terbaik, maka perusahaan harus melakukan proses seleksi dan evaluasi vendor/supplier secara komprehensif diukur dengan metode yang tepat.
Summary of Case studies on the sourcing hub concept by Anupam Agarwal, Arnoud...Haris Naved Ahmed
This paper that I have analyzed is about a concept called the Sourcing Hub. This paper includes various concepts pertaining to Sourcing and Supply chain management. The primary objective of this study is to fit in information on upstream Raw Material suppliers so as to add value to the Supply chain.
Selection of supplier in b2b e commerce using work flow petri netijmvsc
The internet has become the prime driver of contemporary E-commerce. E-procurement is important
aspect of e-commerce where exchange of the information about the order is done. Data Interchange to the
internet, the focus is still on the technology required to exchange information rather than supporting
process crossing organizational borders. Selection of the supplier is the most important aspect of both the
traditional EDI and B2B E-commerce. In this paper we design an workflow model of e-procurement for
selection of the supplier is done by considering the traditional aspects of performance quality and
performance analysis tool work flow ne a concept of Petri net.
study about the supply chain, flexibility and bullwhip effect on scm in small...sushil Choudhary
The purpose of this work is to study, bullwhip effect on supply chain management and discuss the
develop a conceptual model on the potential barriers in the implementation of supply chain flexibility in small-scale
industries. The model suggests that supply chain flexibility can be researched using a three-tier approach:
identification of risks, identification of potential barriers emerging from these risks, identification of bridges to these
barriers. The proposed is based on the view of problems of small-scale industries as well as the limited research on
supply chain flexibility. The studies indicated that the three main barriers to flexibility in supply chains are
improper integration between systems, Supply Chain Function cost and quickening pace of product innovation.
Some ways to overcome these barriers and act as bridges are also summarized. The field of study of supply chain
flexibility presents numerous options for fresh research work.
Optimizing the Content Supply Chain: What Manufacturing Can Teach the Broadca...Cognizant
By applying best practices and models used to optimize physical supply chains, broadcasters can more effectively manage their digital content operations.
The research firm Contrive Datum Insights has just recently added to its database a report with the heading global 3-Chloro-2-Hydroxypropyl Trimethyl Ammonium Chloride Market.Both primary and secondary research methodologies have been utilised in order to conduct an analysis of the worldwide 3-Chloro-2-Hydroxypropyl Trimethyl Ammonium Chloride Market. In order to provide a comprehensive comprehension of the topic at hand, it has been summed up using appropriate and accurate market insights. According to Contrive Datum Insights, this worldwide comprehensive report is broken up into several categories in order to present the data in a way that is understandable, succinct, and presented in a professional manner.CHPTAC is short for 3-chloro-2-hydroxypropyltrimethyl ammonium chloride. Chemically, CHPTAC is called a liquid cationic etherification agent with the molecular formula C6H15Cl2NO.
Introduction to Vendor Management Inventory Abu Talha
What is Supply Chain Management ? Integrating Management and information technology to flourish performance.
What Is Vendor Managed Inventory ?
1. Vendor Managed Inventory or VMI is a process where the vendor creates orders for their customers based on demand information that they receive from the customer. 2. VMI involves collaboration between suppliers and their customers which changes the traditional ordering process.
Schematic Diagram of VMI
WHY USE VMI ?
VMI removes the need for the customers to have significant safety stock. Lower inventories for the customer can lead to significant cost savings.
The customer can make profit from reduced purchasing costs. As the vendor receives data so the customer don’t need to produce purchasing costs ever.
Moreover, the need for purchase order corrections and reconciliation is removed which further reduces purchasing costs.
DUAL BENEFITS (both Supplier and Customer) 1. Less data errors and the overall speed of processing is increased. 2. Having aim to provide better service to the end consumer. 3. Purchase orders are generated on predefined basis. 4. Relation between suppliers and customers are getting strong enough.
Customer Benefits
1. A decrease in stockouts and a decrease in inventory levels. 2. Planning and ordering cost will be decreased. 3. Overall service level is elevated. 4. The customer is more focused in providing great service.
Suppliers Benefits
1. A reduction in customer ordering errors. 2. Promotions can be easily promoted to inventory plans. 3. Customers' point of sell data makes forecasting easier. 4. Philosophy to customer’s stock levels helps to identify priorities.
Comparison between VMI & RMI
Vendor Managed Inventory(VMI)
1. Vendor stocks the resources in suppliers premises. 2. Vendor is solely responsible for the stock availability. 3. VMI focuses on collaboration and share information between trading partners. 4. It is termed as a model of family business.
Retail Managed Inventory (RMI)
1. Supplier stocks the resources in buyer’s premises.2. Retailer is solely responsible for the stock availability. 3. RMI always focused on improving forecasting. 4. It is termed as business model of business.
1.Rebecca SperryMar 29, 2020Mar 29 at 552pmManage Discussion .docxgasciognecaren
1.Rebecca Sperry
Mar 29, 2020Mar 29 at 5:52pm
Manage Discussion Entry
When thinking of purchasing and buying, one may think that the terms mean the same thing. Purchasing, however, is significantly different from buying in that the process refers to buying specific goods or services that will be used by the organization (Benton, 2014). Conversely, buying refers to “procuring items for resale” (Benton, 2014, p. 141). The typical steps in the purchasing cycle are as followed:
1. Identifying the need
2. Specify how much and when the product is needed by
3. Write the purchase order
4. Obtain financial approval
5. Research suppliers
6. Chose the supplier
7. Establish price and terms
8. Place the order
9. Receive the order
10. Approve and pay
11. Update inventory
(Purchasing & Procurement Center, n.d)
Last year, I was involved in an RFP process to determine a new vendor for our relocation program. Each of the steps listed above were apparent throughout the process. The need for the new vendor came from declining service from our then current vendor. We determined that we wanted the new vendor to start providing service in the first quarter of 2020. Relocation vendors were researched and after presentations, a new vendor was identified. The new vendor then supplied a contract with SLA’s and pricing. Once the contract was approved, the vendor started providing the services.
Through this process, I worked with a procurement manager. She used software called Scout to research vendors, initiate the RFP, and collect responses. The software was helpful in making the process easier and more efficient.
Reference:
Benton, W.C. Jr. (2014). Purchasing and supply chain management (3rd ed.). Retrieved from https://www.redshelf.com (Links to an external site.)
Purchasing & Procurement Center, n.d. Steps to purchasing cycle – standard & tender process. Retrieve from https://www.purchasing-procurement-center.com/purchasing-cycle.html
2.Taly Hernandez
Mar 30, 2020Mar 30 at 5:15pm
Manage Discussion Entry
Benton (2014) stated, "A typical purchasing department is responsible for the acquisition of a broad range of materials and supplies. Depending on the sales volume, the number of employees, and the functional sophistication, the purchasing activities can be either complex or simple." (P.139)
The steps in the conventional purchasing cycle are as follows:
· Recognizing the Need
· Specifying the exact need
· Determine Source Options
· Investigating applicable pricing and terms
· Choose the supplier
· Create Purchase Order/ Requisition and send for approval
· Place Order
· Receive and Document the order
· Approve Invoices and Pay
· Verify that PO has been closed in system used (Record Maintenance)
The main difference between buying and purchasing is that buying is considered more of an informal general term. It is most commonly related to everyday goods, services, and commodities. Purchasing is much more formal and process-driven. It is often used to refer to larger .
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Unveiling the Secrets How Does Generative AI Work.pdf
The Sourcing Hub in SCM
1. "Managing Value in Supply Chain ‐ Case Studies on the sourcing hub Concept"
Suhas Kini.B B13175 Roopan Roy John B13168
Madhumitha R B13154 Nidhi Singh B13157
Santanu Mallick B13170 Saiyam Sanghvi B13169
THE SOURCING HUB
SUPPLY CHAIN MANGEMENT
2. 1
TABLE OF CONTENTS
ABOUT THE PAPER [SECTION I]........................................................................................................ 2
RESEARCH METHODOLOGY AND RESULTS [SECTION – II] .......................................................... 3
RESEARCH FINDINGS AND IMPLICATIONS TO THE INDUSTRY [SECTION – III] .......................... 6
LIMITATIONS OF THIS RESEARCH [SECTION – IV] ......................................................................... 8
3. 2
OPERATIONS
MANAGEMENT II
ASSIGNMENT
SUPPLY CHAIN MANGEMENT
Our paper for study was Managing Value in Supply Chain ‐ Case Studies
on the sourcing hub Concept by Anupam Agrawal from University of
Illinois at Urbana‐Champaign, Arnoud De Meyer Singapore
Management University, Luk N. Van Wassenhove INSEAD. This paper
was accepted in California Management Review, Winter, 2014.
WHAT EXACTLY IS A SOURCING HUB?
“The sourcing hub is an upstream entity in supply chains, focused on
developing collaborative relationships with an OEM's suppliers and
suppliers' RM suppliers.”
The hub can be deployed as a physical department or unit within an
OEM's organizational structure.
ABOUT THE
PAPER
[SECTION I]
This paper that we
have analyzed is
about a concept called
the Sourcing Hub. It
helps us revisit certain
concepts of Sourcing
and Supply chain
management. The
primary purpose of this
research is to integrate
information on
upstream Raw
Material suppliers so
as to add value to the
Supply chain.
4. 3
RESEARCH METHODOLOGY AND RESULTS [SECTION – II]
For many companies, raw material is a huge part of the cost, there are lot of companies that source their
raw materials from different suppliers but again this kind of sourcing fails to recognize the common pool of
suppliers of raw materials which are actually upstream.
A sourcing hub tries to integrate all these suppliers in terms of commonalities that they provide to any
OEM.
The Methodology that the authors have followed is a case by case analysis to understand the sourcing
process in different companies. They have earmarked four companies for study namely
1. DMV in Germany,
2. TMV in India,
3. TDV in South Korea
4. BKI in France
Of these, the first three firms are automotive OEMs while BKI is automotive brakes supplier. The choice of
companies has also been made after careful analysis taking into consideration that the companies are from
different countries and also there are two firms (BKI and DMV) that are in the process of considering the
implementation of a sourcing hub, one firm that is now implementing the Sourcing hub concept (TMV), and
another firm that has already implemented it (TDV). If we look into Table 3, we can observe that there are
two different flanges that are made of the same material SS41. Hence, the information regarding all such
commonalities is tapped if a sourcing hub is made.
There were also two perspectives that were taken under consideration as follows :
Complexity perspective: Firms should gain visibility over their supply network and attempt to gain some
form of control over it as it is very complex.
Outsourcing /simplification perspective: Managing the network is complex and unrelated to the core focus
of the firm, then outsourcing should be way out.
They had made a questionnaire that tried to gather the required information. They visited the four
companies and presented a questionnaire to the different people who are responsible for sourcing. The
questioning is usually preceded by an Information exchange and an assurance for confidentiality.
5. 4
The different types of information gathered during the survey follows a sequence that can be best
described as shown:
After this information is obtained they analyze individual scenarios that can happen in a company on a case
on case basis and they make the 2 propositions taking into consideration the 2 perspectives which were
mentioned earlier. The propositions made are as follows:
Proposition A:
As uncertainty increases, developing BOM‐based sourcing details of RM by working with RM suppliers for
components sourced from 1st tier suppliers can help decrease design‐, sourcing‐, and manufacturing‐related
complexity for the focal firms, the 1st tier suppliers, and the RM supplier.
Proposition B:
As the number of RM suppliers decreases and the RM content in the cost of goods sold increases, the
opportunity for value addition in upstream supply chain by (i) direct purchasing of RM, (ii) sharing demand
BOM based Raw Material Sourcing Knowledge
1. Creation and acces of BOM
2. Raw material Dtermination and usage
3. The effect of design and quality on raw materials
RM Sourcing network
1. Information on the major suppliers of these raw materials
2. Probing questions on Relationship with raw material suppliers
Sourcing costs and financing
1. Assesing Involvement in sourcing of Raw Materials
2. Finding out the decisions depending on RM supply
3. Financial Aspects, working capital etc.
6. 5
information with 1st tier and RM suppliers, and (iii) production related information for the focal firms, the 1st
tier suppliers, and the RM supplier, increases.
Deployment of the Sourcing Hub
The hub has sourcing individuals working full‐time on the related transactions, including
logistics and negotiations and also has the support of other departments such as finance,
IT, and others who are working part time in the hub.
There are two types of costs involved in deploying the sourcing hub-‐ startup and ongoing.
The startup cost relates to the detailing of raw material at the component level and establishing a
material database so that the raw material supply is streamlined.
The raw material level details at the component bill of material level are normally not a part of the
day‐to‐day operations at other OEMs.
In order to develop such a database, the OEM has to collate accurate raw material information, such
as grades, weights and sources of material, for each component.
The hub has sourcing individuals working full‐time on the related transactions, including
logistics and negotiations and also has the support of other departments such as finance,
IT, and others who are working part time in the hub.
7. 6
RESEARCH FINDINGS AND IMPLICATIONS TO THE INDUSTRY
[SECTION – III]
Eliminates the Bull whip effect
The bullwhip effect can be explained as an occurrence detected by the supply chain where orders
sent to the manufacturer and supplier create larger variance then the sales to the end
customer. These irregular orders in the lower part of the supply chain develop to be more distinct
higher up in the supply chain. This variance can interrupt the smoothness of the supply chain
process as each link in the supply chain will over or underestimate the product demand resulting in
exaggerated fluctuations.
The information obtained via survey is used for detailing the upstream Raw Material sourcing
network, including all suppliers' suppliers.
A simple model of Sourcing Hub with Multiple Raw material suppliers and Suppliers to OEMs
This information is shared to these stakeholders about current and immediate future production,
about market demand, and new products.
Supplier 1
Supplier 2
SOURCING
HUB
Raw Material
Supplier 1
Raw Material
Supplier 2
Raw Material
Supplier 3
8. 7
This is a major step in trying to eliminate the Bull whip effect which may arise out of Information
asymmetry.
Collaborative design
To start with, there would be interaction with the design and technical departments for sharing
knowledge on available technologies and Raw Material available from suppliers in order to help
improve design and development of current and new products.
This leads to collaborative design so that the suppliers know what kind of materials to procure and
store.
At the same time the OEMs can leverage upon the knowledge of the suppliers to understand the
right kind of material needed for any application.
It also provides vital information while entering new markets.
Suppose a material needs some processing to be done, then the supplier can schedule can process
accordingly. This gives rise to Concurrent Engineering.
Here by direct sourcing from the Raw materials the intermediate costs of the immediate suppliers is
eliminated thereby bringing about cost savings.
Reducing Ordering Costs:
We all know that Economic Order Quantity is = √(2DS/H). So the EOQ can be brought down by
reducing the value of the ordering cost.
In its sourcing hub, TDV manages complete transactions for RM sourcing via an online web‐
based system.
Hence this type of a system though different from an e- procurement system would help in
bringing down the ordering costs considerably.
Single Supplier Concept:
As we can see this concept of sourcing hub would bring about the optimization of network of
suppliers thereby reducing the dependency on suppliers. If we look into table 5, we can observe
since the sourcing Hub is implemented, though there are 23 different suppliers, there is only one
raw material supplier.
9. 8
LIMITATIONS OF THIS RESEARCH [SECTION – IV]
Restriction to Automobile Industries:
This research is restricted only to Automobile Industries and hence the suitability of this concept
for other industries cannot be justified. For example in Industries which have Job Shop
production, every job is a new variety and hence optimizing the requirement of Raw Materials is
difficult.
Increased dependency:
In this case becoming increasingly dependent on one Raw material supplier would put the firm in
a tough spot because of the following two reasons:
1. The Firm may be in financial trouble or may not be able to supply goods due to some
calamity.
2. The firm may place restrictions or become demanding as it is the sole supplier or one
among the few suppliers for the OEM.
Transfer of Technology:
Working closely to the OEM makes the supplier come to know about technologies /processes that
may be strategic or critical to the company in which case there may be a breach of trust or the Raw
material supplier can come up as a new competitor.
Imported Components/Cycle time:
In defense and space applications, there are some specific requirements of the process which
requires greater precision and hence they are imported. This concept cannot be tried in those
cases. Also the cycle time must be considered and if purchasing the parts is economic, we should
go for purchasing them directly.