Assignment Sourcing 1

Survey, Assessment & analysis on sourcing system at “Epyllion Group”

1.1 purchase principles:
Purchase principles are stated below:
A. Just in time (JIT) purchase
B. Economic order quantity
C. Efficient purchase
D. Optimization of quality and price
E. Good market analysis and buy from the horse mouth
F. Be focus to the market
G. Be in touch with market leader
H. Convert the supplier into partner of the company
I. Transparent purchase
J. Uphold “Epyllion Group” interest
K. No purchase order, no purchase

1.2 Types of purchase:
A. Raw materials
i. Raw material without nomination ii. Raw material in case of nomination
B. Production consumables including machineries spares
C. Non-production consumables (such as printing ;& stationary, office supplies and housekeeping materials)
D. Spare parts of vehicle
E. IT equipment and accessories
F. Capital expenditure (CAPEX)
i. CAPEX for construction project ii. CAPEX for machinery & equipments

Types of supplier:
The supplier base shall be divided into two categories. Such as enlisted supplier and non-enlisted supplier
Enlisted supplier: Enlisted supplier refers such supplier, are listed by the enlistment procedure of “Epyllion Group”
Non-enlisted supplier: non-enlisted supplier refers such supplier, are not listed by the enlistment procedure of “Epyllion Group”.
1.08 Purchase Matrix:
Below is the purchase matrix which is marked by “yes” or “no”. Yes indicates the “authorization” for purchase and No indicates “non-authorization” for purchase.
Serial no
Types of purchase
Enlisted
Non-enlisted
1
Raw material supply chain without nomination
Yes
Yes
2
Raw material supply chain in case of nomination
Yes
Yes
3
Production consumables including machineries spare parts
Yes
Yes
4
Non-production consumables (such as printing & stationary, office supplies and housekeeping materials)
Yes
No
5
Spares parts of vehicle
Yes
No
6
IT equipment and accessories
Yes
No
7
Capex for construction
Yes
Yes
8
Capex for