SM Jaleel, located in Trinidad, is a family run business that is the largest drink manufacturer in the Caribbean. Dominating the Caricom market, with seven leading brands of soft drinks and fruit drinks, its products are sent out throughout the region and internationally, with vast amounts of cases of refreshments through the supermarket string. (Fig 1. )
SM Jaleel's purchasing function (Fig 2. ) comprises mainly of taking care of the supply string (Fig 3. )
from defining features based on the organization's needs in its inbound logistics to the delivery and use of drinks.
Quality is critical to the business, as a result, all activities including purchasing must abide by the quality benchmarks of the organization.
Overview of SM Jaleel's purchasing function
Ideally the role of the creation organization's purchasing department includes the following;
Managing suppliers in increasing the supply string.
Evaluating and tracking supplier features.
Selecting the cheapest total cost dealer.
Reducing purchase costs.
Leveraging buys by lowering suppliers and increasing quantities.
Managing supplier connections.
The Purchasing view is to save funds and also to avoid buying a far more costly service or product or larger number than is really needed, to attempt to obtain both product and price competition.
At SMJaleel the purchasing team is more traditional in their strategy due to the nature of the products where they produce. For the carbonated drinks the business has a close relationship with the fixed suppliers who provide the basic elements like water distributor by WASA and sugars supplied by Guyana. Whilst for the fruit drinks they vend from local farmers and suppliers. They stay in this safe place as they believe there supplier relationships are optimal.
Specification and Purchasing and its own effect on Quality
Specification identifies a information of the characteristics of a product or service required. It is defined as the necessity which a purchase order is to be based. Specifications set forth the characteristics of the goods and services to be purchased to be able to enable the vendor to ascertain and understand that which is to be supplied.
Today's competitiveness calls for high quality, and a standards can assist in purchasing the best product for insight. The time to develop a standardized purchasing standards can conclude high rewards and having various departments get involved improves the standards and places the stage for continuing the specification improvement process. Unlike other beverage companies like PepsiCo and Cannings, SM Jaleel do not revise its product and services requirements frequently.
Theoretically management thinks that specifications are an important component of the purchasing process at SM Jaleel. Yet, in interviewing actual customers it is presumed that the prep of good features is just about the most difficult function in the process and the company plays little emphasis on these as it can be regarded as frustrating. Inadequate or improperly written specifications sometimes the reason for many bidders' difficulties and can significantly hold off the purchasing process, which is area of the reason company tends to use resolved suppliers.
The importance of Expectations in Quality Management
As circulation chains are progressively stretched surrounding the world, and urgency has arisen for the creation of protection requirements to ensure that beverage industry quality control and control standards provide a safe global supply.
The key to increasing supplier quality is the use of professional quality expectations by all. Michael DeCata administrator of global company quality for GE Plastics thinks that certification can help reduce redundancy in dealer qualification, and that it's rather a springboard for real quality improvement. Most purchasing executives understand the merits of the documentation process, agreeing that it can help in bettering quality guarantee systems.
SM Jaleel's Management recognizes the merit and quality image that the business has achieved using its positioning with local and international criteria.
TTBS-The Trinidad and Tobago Bureau of Expectations acts primarily to develop, promote and enforce specifications in order to enhance the quality and performance of goods produced or used in the Republic of Trinidad and Tobago. Through the TTBS SM Jaleel also contains regular membership in the CARICOM Regional Group for Expectations and Quality (CROSQ) and it is a full Member of the International Organization for Standardization (ISO) which is an international standard environment body composed of staff from various national standards organizations. The organization publicizes worldwide documented standards.
Food and Medicine Administration (FDA) registration is required for all companies that production, process, load up, or store food or drinks which may be consumed in america. Thus SM Jaleel is also FDA approved as they export to large office chains like Walmart in america.
Value examination is a organized effort to improve upon cost and or performance of products and services either purchased or produced. It examines the materials, procedures, information systems, and the move of materials involved.
Value Analysis permits the improvement of product performance and reduction in development cost by understanding and handling the planned function of the product. The technique includes;
Dissecting products to discern key competitive advantages.
Detailed examination of the disassembled products.
Identifying those functions of matter and soliciting ideas for boosting.
Selecting the most value adding.
Cost-effective ideas and getting ready a business case for the implementation of the proposals.
Value Evaluation in the purchasing function includes the examination of each procurement item to ascertain its total cost of acquisition, maintenance, and use over its useful life and, wherever possible, to replace it with a more cost effective substitute. Integrated diligently, value research can end result in
Reduced material use and cost.
Reduced syndication costs.
Improved profit margins.
Increased customer satisfaction.
Increased staff morale.
Based on observations and the outcome of the record, it seems that the company's management is convinced that there purchasing functions are desirable as they are experiencing growth and persisted success, however there are several areas that can increase the efficiency of the operations.
1. Improve insight quality which means last product quality.
2. Lower machine life-cycle costs.
3. Reduce purchase circuit time.
4. Educate suppliers to the company's longterm requirements.
This information may be in the form of the information of the physical, useful, or performance characteristics and a brand name. Requirements are written in order to not limit bidding but encourage open up competition. The goal is to invite maximum reasonable competition. Even though the type of the products produced do not require demanding specification requirements it is recommended that the business adhere to this behavior as it may be more profitable when the business grows and develop.
I also recommend that the purchasing division identifies training needs and training for all employees. This ensures that they have the appropriate level of education, experience and training essential to effectively perform the mandatory activities. An exercise plan can be established to handle food security training for allergen management, low acid manufacturing, employee safe practices and food security.
All purchased elements should be procured against an approved specification from an approved merchant. Suppliers should move an acceptance process. However in the case of the creation of the fruit drinks where it's main substances example sorrel are locally sourced the business can setup progammes to ensure this products are planted and reaped to guarantee the highest quality. Company performance should be routinely monitored, registered and reassessed.
CARICOM Regional Organization for Standards and Quality- www. crosq. org
Registrar Corp Sign up Information- www. registrarcorp. com
International Business for Standardization-www. iso. org
Bridle, J. (2004) 'Integrated travel planning: Supply-chain success', Target,
Trinidad and Tobago Bureau of Standards -www. ttbs. org. tt/
SM Jaleel and Company Small http- www. chubbysd. com
Techniques of value evaluation and anatomist. Lawrence D Miles
Lundgren, Bryan. 1990. Special Purchases Need Standard Specs. Purchasing World, December 1, 44. http://www. proquest. com/ (seen December 4, 2010).
Carbone, Wayne. 1996. Chrysler wants QS 9000 standards for all those suppliers. Purchasing, January 11, 68. http://www. proquest. com/ (utilized December 4, 2010).
Avery, Susan. 1994. ISO 9000 recognition: Will it help or impede? Purchasing, January 13, 101. http://www. proquest. com/ (reached December 4, 2010).
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