You need to come up with a company that sells a product on your own. The following needs to be done: 

1 – 

Company [name]

Product [name]

Head quarters is based in [town]

Your company has 3 different production locations

Sales of [name] is €x.xxx.xxx per year.

For the production of your product the company purchases the following four main products:

[Product 1] | [Product 2] | [Product 3] | [Product 4]

The total purchase budget of [name] is € xxx.xxx per year

[product 1] is, based on the purchase budget, the most important product for the company , with a purchase budget of € [amount] per year. The purchase budget for [product 2], [product 3] and [product 4] are € [amount], € [amount] and € [amount] per year.

2 –

Investigate the purchasing market of the four goods and characterize the purchasing situation per product according to the method introduced by Fisher based on the aspects of product complexity and commercial uncertainty.

Describe on the basis of a) the nature of the purchasing process and substantiate for each product which disciplines according to Fisher are involved in this purchasing process.

Make a purchase specifications for the four goods to be purchased (specification incl. program of requirements), comprising of the functional, technical, logistic and quality specifications.

3 –

What are the 4 primary tasks and responsibilities of purchasing in your organization. Then indicate how these primary tasks and responsibilities are implemented in your organization.

Substantiate how mature your company is in purchasing by indicating what the actual stage of development of purchasing and supply management is within your organisation. 

Describe and elaborate on the e-procurement solutions for your 4 goods to be purchased

Elaboration on the advantages of these e-procurement solutions

4 – 

Describe the supplier selection process for your 4 goods.

Describe the 5 most important purchasing issues for your 4 goods to be purchased

5 – 

Position the four goods to be purchased in the Kraljic’s procurement portfolio matrix. Substantiate why and indicate the strategy linked to this positioning.

Determine the purchasing strategy of the 4 goods to be purchased based on the Kraljic classification.

Identify the purchasing risks for each item to be purchased. Substantiate how these risks have/will (to) be managed?

Analyse the likelihood of occurrence and the financial impact of these risks and plot them in a risk assessment matrix.

6 –

Elaborate if your company applies single or multiple sourcing to purchase your 4 goods

Elaborate if your company applies local sourcing or global sourcing to purchase your 4 goods

Elaborate if your company applies make or buy to produce your goods and/or the end product

7 – 

Describe and substantiate the purchasing structure of the organization – central, hybrid or decentral purchasing organization

Elaborate on the choice for central, hybrid or decentral purchasing in the organization

Categorise your goods to be purchased according to their market form based on the number of buyers and sellers.

8 – 

Describe and elaboration on the operational kpi’s of the 4 goods to be purchased (use page your book as reference)

9 – 

Identify the stakeholders involved in the purchase of your 4 goods and describe stakeholder relationship management. 

10 –

Describe the corporate social sustainability activities and their importance

Describe the role of purchasing with regard to corporate social responsibility

11 – 

Summary and APA sources