kiwi case study

Topics: Supply chain management, Marketing, Procurement Pages: 3 (640 words) Published: September 24, 2014
Answer 1. Strategic sourcing is the major tools and technology in supply chain management and it delivers cost reductions and other offers and advantages. It will make strategic sourcing different from a traditional sourcing. This sounds the most strategic supplier relationship that is based on cost and there is an ability to create new business with technological advances. In the past, the organization was usually focused on tactical functions such as processing of purchase orders, checking the status of delivery and this might contribute to corporate responsibility. Various important approaches like engineering driven approaches and selection of supplier processes lead to the number of suppliers at premium prices. It reduces cost of sourcing, helps in achieving low cost. Plexet has a reliable and valued suppliers and Plexet used to maintain long term supplier relationship, especially with large retail chain known as Kiwi Mart. The purchasing of Kiwi Mart acquired more than 4000 container cases at the discount rate of 4 percent from Plexet. It has decided to benefit with the discounted price rates and selling of high quantity containers. With the selling of 400 container cases at the wholesale price rate, the deal gets negotiated within 3 months. This has helped Kiwi Mart to resolve the challenges such as inventory challenges and other issues with Auckland Kiwi Mart. Just after the negotiation, the head of the Kiwi Mart purchase department had been contacted by Chinex and they offered more than 7 percent discount on more than 5000 container cases of different products such as good seal products. The deal was too strong and good with different orders. The purchasing manager was not aware of the situation and it had a complete line of sizes and quantities with respect to every product. Thus, it has been decided to help and resolve the adjustment of the product line. The purchasing department of Kiwi Mart focused on addressing several issues such as...
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