logo

Procurement and Supply Chain Assignment

   

Added on  2021-04-17

9 Pages2387 Words30 Views
Business Development
 | 
 | 
 | 
Running head: PROCUREMENT AND SUPPLY CHAIN REPORTProcurement and Supply Chain ReportNameInstitutional Affiliation
Procurement and Supply Chain Assignment_1

PROCUREMENT AND SUPPLY CHAIN REPORT 2AbstractDue to the exponential population growth that has been witnessed in the world, manycountries are demanding more power and energy to achieve the process of industrialization.The number of the people, homes, industry that need power has over time increased and thishas made government and corporate entity to explore different ways of supplying thedemand. With the high demand for power, the power generating company has laid downstrategies to ensure power the high demand is met. Many countries especially the third worldcountries are keen on the process of industrialization and therefore governments are verykeen to ensure they supply energy to boost the process of industrialization. This study willfocus on a company that has one key portfolio as energy delivering business known asSapphire Energy. This paper will seek to assess the company systems that are currently usedin ordering the electrical power. The main objective of this study is to explain strategic andpolicies employed by management when running this two portfolios. In addition, the reportwill give a snapshot of how sapphire energy depends on the supply chain management to runtheir operations.IntroductionLaburnum Group of the company was started in 1920 as Victorian farmers’cooperative. Over the years, Laburnum Group has emerged to become one of the largestlisted companies in Victoria, Australia (Denham et al., 2007). The group prides itself onproviding significant returns to its shareholders. Sapphire energy and Au cotton clothingportfolio, in particular, are of strategic interest to Laburnum since they constitute the largestshare of the business. These two portfolios have been faced by inefficiencies andmanagement has decided to re-evaluate the systems and explore ways in which they canimprove the current systems, process, and strategies across different products categories.
Procurement and Supply Chain Assignment_2

PROCUREMENT AND SUPPLY CHAIN REPORT 3Sapphire energy and Auscotton are the largest profit-making divisions (Robins, 2007).Currently, the two division are facing several operational challenges in the department ofprocurement and supply management. This study will seek to evaluate the problem andsuggest a possible solution. This study will conduct an assessment of both energy and clothing portfolio ofLaburnum Group to demonstrate how procurement and supply chain management has led toinefficiencies and loss of revenue to the company. In addition, the study will explore theways in which to improve the efficiency of the procurement processes.Sapphire EnergySapphire Energy is one the biggest revenue generating a portfolio. Sapphire provideselectric services for its customers who are located near Ballarat, Bendigo, Geelong, Melton,Sunbury, Shepparton, Traralgon, Wangaratta, and Wodonga (Behnke, 2016). Eastern Powerstoreroom is the company that is contracted to supplies Laburnum with cables. This cable ismostly required for routine service work. One of the materials that are extensively used toprovide this services is the 1/0 AWG aluminum triplex cables, that transmit electricity fromthe energy line to their meter loops (Regalbuto, 2009). Eastern power storeroom as theprocuring entity of the sapphire needs 155, 000 meters of this service cables. This is becausethese cables are only used at routines service work. These cables are installed in a period of 5working days. The current arrangement between the Eastern power storeroom and theSapphire management is that Eastern management must take one-twelveth of its annual needsevery month (Regalbuto, 2009). This agreement arrived so that management could reduce thelead-time by ensuring the company is a frequent spot in the supplier's production schedule.Interestingly, customers are not offered a quantity discount on these cables; however, the
Procurement and Supply Chain Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Supply Chain Assessment 2022
|8
|2259
|36

Laburnum Group Case Study | Assessment
|8
|2368
|65

Improving Supply Chain Management and Procurement for Laburnum Group
|9
|1963
|46

Laburnum Case Study: Analysis of Energy and Clothing Business Portfolios
|9
|2594
|283

Case Study Analysis of Sapphire Energy and Aus Cotton
|11
|2622
|496

Laburnum Group: Challenges and Solutions in Procurement and Supply Chain Management
|11
|2613
|135