Supply and Contract Provisions Paper

Added on 2020-04-13

21 Pages4054 Words122 Views

Assessment Student Name:Student Number:Module Code:Submission Date:

IntroductionThis paper presents an assessment concerning my ability to complete tasks that were outlined in the elements and performance criteria of this unit in the context of the job role. This paper focuses on three parts. Part A reviews the current supply and contract provisions in place for 3 suppliers that are relevant to beverage blending as my area of work. The objective is to establish new business relationships through determination of alternative supplier provisions. Part B presents a formal negotiation and management of an agreement and contracts with two different suppliers. The objective is to determine conditions involving new supply agreements. Part C demonstrates the use of a high high-level communication and the relationship building skills when conducting formal negotiations and making of commercially significant business-to-business agreement in established relationships. 1.Part A: Three Suppliers Suppliers123Newburgh Banana IncMithuna Foods Company IndiaRaphpull Medic GroupProducts suppliedBananas, mangoes, plantains, pineapples, and avocadosfresh mango pulpspecializes in supply of fresh red onion, fresh cassava roots,fresh tomatoes, and fresh green peas

2.Key performance indicators/specifications required for the supply of each of each product from each of the above suppliersMangoesHigh quality mangoes should be green in colour with oval shapeHigh of mangoes should be one that;Does not have spotsHigh quality mangoes should be clear in green or yellow colourThe mangoes should be in such a way that;Are not fluffy Financial benefits – lower price and discounts with sizesEnvironmental resistance – does not go bad easily when exposed to extreme temperatures Capable to stay for some few days to meet customer nutritional value/requirementsBananasQuality of banana fruit in terms of;Skin colourShapeSizeNutritional valueStrong flavorQuality – consistency and reliability of banana productsPineapples

Skin colourShapeSizeNutritional valueStrong flavorQuality – consistency and reliability of banana productsDelivery – Performance according to the schedule3.Alternative suppliers to identified suppliersSupplier of mangoes: Chiquita Brands International Inc foodsDescription Particulars1.Price (per kilogram) USD 20/kg mango 2.Supply (per day) mango 20 cartons3.Transportation charges $3 per carton4.Extra supply (for buffer purposes mango: 5 cartonsSupplier of Banana: Purcell InternationalDescription Particulars1.Price (per kilogram) USD 20/kg 2.Supply (per day) 20 cartons 3.Transportation charges $2 per carton4.Extra supply (for buffer purposes banana: 5 cartons Supplier of Pineapples: Dole Food CompanyDescription Particulars1.Price (per kilogram) USD 20/kg 2.Supply (per day) 20 cartons 3.Transportation charges $2 per carton4.Extra supply (for buffer purposes mango: 5 cartons

4.Advantages and disadvantages The attachment of the summary provided in the appendix section 5.Recommendations The above comparison brings out the need to replace Mithuna Foods Company India Company with Dole Food Company. Such a replacement will consider a number of factors such as the quality of products, prices, the payment conditions, reliability and service provision. In thefirst case for example, quality of inputs play a central role for a company that seeks to convert the raw materials or components into finished valuable products. While the two companies supply high quality products, distance of transportation remain an important component in any supply chain Florian (2013). The supplier transports mangoes from India to our company. This implies that such a perishable product cannot take long without going bad in cases of uncertainties. Prices charged by suppliers on their products play a key role in determining the final price of a product. Florian (2013) maintain that prices also determine the nature of marketing and competitive advantage strategies a firm is likely to design. The need to replace one of the suppliers is because the decision of a company to buy low costly products from companies that do not spend much on freight. Furthermore, the company currently offer low-cost leadership strategy. The sustainability of such a strategy can only depend on suppliers that offer relatively lower costs for the inputs. 6.Supplier relationship management considerationsThe supplier relationship management presents a good opportunity to create a successful strategic sourcing of the best suppliers maintaining relationship. Wieteska (2016) explains that this involves creation of a strong partnership with key existing suppliers in order to reduce on

costs, come up with new innovative products, and create value for both parties. In the case of ourcompany and already existing suppliers, relationship is managed through communication, monitoring, and provisions. In a business environment where competition is an everyday thing, businesses must ensure that they implement on an effective customer relationship management strategies. Our business has managed to come establish a number of communication channels. This implies that the business now utilizes on a multiple ways to communicate with existing suppliers. The channels include offline and online techniques. Kooli, Mansour and Cornwell (2016) maintain that establishing more communication channels is important for a business-to-business relationship. It makes it possible for management to interact with customers and serve their needs. While there are several ways that a business can communicate with its customers, the business managed a strong relationship with existing suppliers through formal channels such as postal correspondence, phone calls, email, short message services, and video conferencing. Monitoring has also been adopted in the business to help create and maintain a strong relationship with already existing customers. Just as explained by Kusari, Hoeffler and Iacobucci(2013), is that monitoring play a key role of capturing the efforts of a buyer in order to verify andsupervise performance of a supplier. While monitoring can take a multifaceted approach, out businesses tend to focus on output or performance monitoring of suppliers. For instance, we adopted a traditional supplier survey. The company measures the performance of suppliers through a four-item scale adopted by Qi, Zheng and Bin (2013). For example, the form of questionspresented in such a survey focuses on asking the respondents to rate the performance of supplierson varying metrics such as the rate of product delivery, and delivery performance. Besides, Cockayne (2016) explains that managers can measure satisfaction through alternative scales.

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