Supply Chain Contracts for Inspira Capital Procurement Contract

SUPPLY CHAIN CONTRACTS 1
INSPIRA CAPITAL PROCUREMENT CONTRACT
Name of student
Name of institution
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Date

SUPPLY CHAIN CONTRACTS 2
Executive summary
Supply chain management procedures play an important role in sourcing services.
Companies should set up proper supply chain policies to manage the relationship with the
suppliers. This report focuses on Inspira Capital, which intends to contract a cleaning company
to help in the new 20 storey grade A house. The need for a new cleaning company raises the
need to develop supply chain procedures. The supply chain procedures in the report have
elements such as criteria for identifying potential suppliers. The identification procedures state
that the chosen company should match the strategic goals of the company. The report further
focuses on control measures to prevent potential procurement risks from happening during
service delivery. The risk controls prevent the suppliers from failing to meet the standards set in
the contract. The report further identifies the evaluation standards that the audit team will follow
to establish whether the service level is met. The service level is evaluated using key
performance indicators, which the cleaning company should uphold at all times. Failure to meet
the set standards could result in dire consequences such as,
1. Contract termination
2. Legal procedures
3. Withholding of payment

SUPPLY CHAIN CONTRACTS 3
Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Inspira capital’s method of identifying potential service providers................................................5
The procurement process.................................................................................................................6
Inspira Capital’s measurement to manage procurement risks.........................................................7
Inspira Capital requirements for submission of bids.......................................................................8
Evaluation of the submitted bids.....................................................................................................8
Inspira Capital expected service levels..........................................................................................10
Cleaning key performance indicators............................................................................................12
Improved cleanliness and hygiene.............................................................................................12
Increased recycling and plants maintenance..............................................................................13
The consequences of failure..........................................................................................................13
Management of compliance and supplier relationship..................................................................13
Collaborative relationships........................................................................................................13
Communication..........................................................................................................................14
Mutual trust................................................................................................................................14
Joint problem solving.................................................................................................................14
Escalation of disputes.................................................................................................................15
Agency-supplier relationship.....................................................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

SUPPLY CHAIN CONTRACTS 4
Introduction
Inspira Capital is a strategic co-investment partner that offers capital and services. The
company is dedicated to providing technological, manpower and relationship-based solutions to
the clients. The company believes in collaborating with the customers to come up with suitable
solutions for problems. The company is made up of former CEOs who help company owners to
reach top-notch success. Additionally, Inspira Capital builds profits from investors through
entrepreneurial engagements. The company backs entrepreneurs with financial and intellectual
resources. The resources at the entrepreneurs' disposal play a huge role in achieving full
potential.
This report focusses on Inspira Capital, which has offices in Singapore. The company has
successfully acquired a new 20 floors grade A office building within the business district. The
company intends to source for external cleaning services, which are currently performed by in-
house cleaners. The transition requires supply chain experts in the company to oversee the
sourcing and awarding of the cleaning contract (Ali, 2018). Therefore, the report has developed
smooth procedures for undertaking supply chain processes from the initial stage to contract
performance. The issues discussed in the report include,
1. Details of submitting bids
2. Methods of evaluating the submitted bids.
3. The required service levels
4. The key performance indicator
5. The consequences of failure
6. The management of supplier relationships