Case Study Report - REFINED BUS LTD
You have applied for the position of head of procurement and inventory management at Refined Bus Ltd. They have a large manufacturing site in Doncaster, England. On the same site there is a Service Support Centre (SSC) which supply parts to any company operating buses manufactured in the past by Refined Bus Ltd. You have been asked to prepare a report and on receipt will be interviewed by Refined Bus’s managing director who has sent you some outline information.
The annual procurement expenditure is £325 million and ten (10) strategic suppliers account for 80 percent of the expenditure. They supply products such as aluminium sheets, glass, seating, tubular fabrications, doors, carpeting and electronics. Inventory carried for production is currently £96 million. The SSC annual sales are £30 million and they have £26 million of inventory and have a client demand satisfaction rate of 67.3 percent. Refined Bus Ltd are supplying parts for vehicles that were manufactured more than 20 years ago.
The managing director, in his letter, advises you that if you are the successful candidate he will demand dramatic improvements in procurement (the company does not practice JIT or partnering) and inventory where the working capital is not used effectively. You will be asked to prepare a report and then explain (at the interview) the approaches you would follow to deliver significant business benefits.
Questions:Using the facts presented above for Refined Bus Ltd, write a 2500 word report (+/- 10%) which answers the following questions:
Describe the procurement issues currently experienced by Refined Bus Ltd.Using Kraljik’s procurement model, assess the importance of the ten (10) strategic suppliers who account for 80 percent of the expenditure.How will you improve the Service Support Centre (SSC) client demand satisfaction rate of 67.3 percent?You do not have the contractual details of the ten (10) strategic suppliers, therefore describe the tendering process you will go through to establish new contracts with these existing suppliers and/or seek new suppliers.Is it appropriate for Refined Bus Ltd to consider bringing more of the component manufacturing into their own production facilities?Having considered your position, make detailed recommendations to Refined Bus Ltd to overcome the current issues.The document presented should incorporate:
Executive SummaryThis section provides a 500 word (+/- 10%) summary of the major points of the report. You are required to write this as a Business Report specific for Refined Bus Ltd (without any academic references). The purpose is to enable the reader to understand the purpose of the report, methodology and findings at a glance.
Current Procurement Issues/ProblemsThis section should give an overview of the current issues/problems experienced by Refined Bus Ltd. This is NOT a summary of the case study, but a presentation of the current issues/problems as you see them and supported by your academic research.
Kraljik Procurement ModelResearch the Kraljik Procurement Model using at least 2 most recent academic journals articles (published within the last three years) and apply the model to the case study. You will need to draw the model as part of your explanation (graphical brilliance not required). It is advised that you adopt the Kraljik model published in academic journals, rather than those found on the internet using Google Search. Such models will not be acceptable for this assessment.
Service Support Centre (SSC)The SSC has an identified problem. Using the Supplier Relationship Theory, how would you address this problem?
Evaluation of existing suppliersThe Kraljik model has provided a point of ‘model’ evaluation. Additionally, you need to evaluate using other theories to enable you to make appropriate recommendations on existing suppliers.
Make or BuyThe decision to Make or Buy is very complex and this theory is supported by robust academic research. As we do not know a lot about the existing suppliers or Refined Bus Ltd, academic theory helps make the decision on what you are going to do. Explain using the theory why you are taking this direction. It is important to make a decision and then support your decision, as the Managing Director is looking for a decisive person.
RecommendationsThis section outlines your recommendations to Refined Bus Ltd on your strategy for solving the identified problems.This section should not incorpoate any new work or references, as this is your recommendations on the strategic direction for the company. It should be presented in a professional manner (without the use of bullet points). Bear in mind that the purpose of this report is to secure a job interview. So it is suggested that you close this section with an appropriate statement.
At the end, please provide a word count (excluding the Cover Page, Executive Summary, Reference list, any figures/diagrams and Feedback Form).
Reference ListAll references must be listed in accordance with the Harvard Referencing System as outlined on the
Requirements:
Use Times New Roman Font size XXXXXXXXXXline spacingLeave enough margin for marker’s comments.Reference list on a separate page after recommendations.Use the Harvard Style of referencing only.Do NOT use footnotes.Print word count at the end of your assignment (recommendations section).Number each pageAssessment Criteria
The report will be assessed on the following criteria:
Understanding of the procurement issues.Application of procurement theory and model to the case study.Critical analysisRecommendationsPresentation and referencing.