Scribd
Upload
44 views1 page

Supplier Selection For Descriptive Situations

Amul Butter receives butter supplies from seven cooperatives, with proportions ranging from 1% to 25%. Ahmadabad Dairy employs standard packaging and barcoding and provides predictable deliveries and inventory due to consistent large orders and industry-standard discounts. Baruch Dairy has unique packaging, charges for deliveries, and has excellent just-in-time inventory procedures compatible with Amul's systems. Cataphil Cooperative always delivers on time and provides industry-standard discounts and vehicles, but has undeveloped internal inventory controls limiting crisis deliveries.

Uploaded by

neer2898
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
44 views1 page

Supplier Selection For Descriptive Situations

Amul Butter receives butter supplies from seven cooperatives, with proportions ranging from 1% to 25%. Ahmadabad Dairy employs standard packaging and barcoding and provides predictable deliveries and inventory due to consistent large orders and industry-standard discounts. Baruch Dairy has unique packaging, charges for deliveries, and has excellent just-in-time inventory procedures compatible with Amul's systems. Cataphil Cooperative always delivers on time and provides industry-standard discounts and vehicles, but has undeveloped internal inventory controls limiting crisis deliveries.

Uploaded by

neer2898
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

SUPPLIER SELECTION FOR DESCRIPTIVE SITUATIONS:

Amul Butter receives butter supplies from the following supply cooperatives. Other than the quality
checks, the butter does not require any further processing from Amul’s end. The proportion of
supplies from the cooperatives are given:

Cooperative % Supply
Ahmadabad Dairy 19
Baruch Dairy 12
Cataphil 25
Cooperative
Daily Dairy 9
English Dairy 14
Friends 20
Cooperative
Others 1

A brief description of the cooperatives are given below:

Ahmadabad Dairy employ standard packaging and barcode reading systems. They give standard
industry accepted % discount to Amul for volume and maintain large regular orders. Consequently
their delivery schedules and inventory holding requirements are highly predictable.

Baruch Dairy are located nearly 150 miles north of Amul’s base and send butter in a packaging which
is unique to them. Being in a remote location, they charge for deliveries and do not want to give
discount to Amul for volume orders. Their inventory holding procedures are perhaps the best in the
business and they have a JIT scheduling system which is entirely compatible with Amul’s own.

Cataphil Cooperative have the reputation of always delivering on time and give standard industry
accepted % discount and commissions to Amul. They provide standard packaging and meet
requirements for the refrigerated vehicles. Their internal inventory control procedures are not well
developed, resulting in a ‘no’ for ‘crisis’ deliveries that Amul may ask for.

Daily Dairy always ask for cash payment and give little or no discounts, even when strictly they are
applicable as per industry norms. They provide fortnightly deliveries, with occasional deliveries
weekly deliveries. They have threatened to take their business elsewhere if all their inventory
holding requirements are not met in full.

English Dairy relies on bulk orders which are shipped on an infrequent basis. They give minimal
volume discounts, require rare visits from Amul’s personnel, and are prepared to collate sales credits
and make monthly claims.

Friends Cooperative are not noted for the strength of their internal organization. They are closely
located to Amul’s base, but require frequent calls which extend to assistance with administrative
operations and help with the merchandizing of stock. They initiate separate credits for each item of
product returned and inevitably generate complex sales memos the detail of which is unclear, so
that multiple queries follow almost every transaction.

Decide on which supplier Amul should go for a long-term business relationship.

You might also like