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Kraljic Positioning Analysis for Royal BAM

   

Added on  2019-10-18

8 Pages1293 Words161 Views
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INTRODUCTION:-Royal BAM is considered as the top European construction organization which deals in all partsof the construction process. BAM is involved in delivery buildings and infrastructures. Itdevelops, designs, builds, finance, operates and maintains the infrastructure. In this assignment,we analyze the Royal Bam positioning with the help of four tools of Kraljic Positioning.Functioning of the Royal BAM is very complex that resists changing confronted with the riskslinked with the procurement of projects. This assignment explains the application of Kraljicmatrix on Royal BAM a construction organization, identifying the required adaptations of thetool. Kraljic positioning matrix contains following tools-Classification of Purchase Analysis of MarketStrategic positioningPlanning of ActionAll these tools will be used for analyzing the positioning of BAM group in the market.Classification of purchase:-As it can be seen from figure 1, the Kraljic matrix divides the product as bottleneck, strategic,non-critical and leverage. The dimensions used by the BAM for the classification are suppliedrisk and profit impact. BAM organization follows a working method with four phaseclassification namely plotting bargain power between the buyer and different suppliers, settingup new business plans and finally strategic positioning of products which are identified in theclassification phase. BAM organization follows these working methods because they are flexiblein nature and helps the organization in gaining competitive advantage in the market. For example
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De Haan et al. used classification approach of Kraljic Matrix in a natural rubber industry, whichhelped him in measuring the risk and price for profit impact (Padhi, 2012). BAM used thestrategic quadrant analytics techniques which supports the organization in taking supplydecisions. This model includes the following approaches of purchasing for every quadrant:-STRATEGIC ITEMS:-In this approach, those items are included which require high attention from purchasingmanagers. For the BAM organization construction design is considered as a strategic itembecause it requires huge attention of management because on the basis of design whole plan isconstructed.LEVERAGE ITEMS:- For the BAM organization facilities management is considered as a leverage item because inthis the management of the organization should utilize its whole effort to manage affairs of thebusiness.BOTTLENECK ITEMS:-Construction facilities is considered bottleneck items for the BAM organization because it is acombination of various approaches and functions.NON – CRITICAL ITEMS:-Acquisition of resources is considered as a non- critical items because for this management don’thave to concern more.
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BAM organization uses the classification approach of the Kraljic Matrix provide various serviceto their customers. One of them is site representatives. By using the classification approach insite representatives, they will effectively demonstrate sound judgment and or coordinate thewhole service by performing all the duties.Main tasksProcurement Decision levelStrategic items(design)PrepareblueprintSite reviewHighlyexperiencedGoodknowledgeTop level(project manager)Bottleneck items(Constructionfacilities)Focuses onCSBAactivitiesConductmarketanalysis.Middle Management
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