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[aditi-000]

:SugarwareZ-191: A company has 3 factories in calcutta, Mumbai & Delhi each producing different products. You are appointed consultant to investigating a possibility of establishing central purchasing organisation in Delhi. Draft a report giving your opinion.
Pls let me kno asap..
Thanks.

 

[kandarp.desai]

Following are my findings on ur question.

there are few areas which need to be looked upon when cosiering the buying of raw material
1. whether the (major)raw material is available locally for each of diff product made at 3 diff plant.
if that is the case then centralize purchasing unit at delhi is not cost efficient as shipment for delhi to 2 plants at mumbai and kolkata is involved and if some material is rejected then lead time is added.
2. if above is not the case and if raw material is imported or purchased from some other location then in that case it will be feasible to established purchasing unit in the delhi.
3. if 1st is the case then we can propose that there shud be some reporting and feedback mechanism between the HQ at delhi and purchasing units at diff plants and policies are laid out from the HQ to follow.