1.0 Introduction. 4
2.0 Main body. 4
2.1
Selection of supplier and safety. 5
2.2
Risk management. 5
2.3
Quality assurance. 5
2.4
Contracts and agreements. 5
2.5
Cost and efficiency. 5
3.0 Benefits of JDPi for competitive tendering
approach. 6
3.1
Benefits. 6
3.2
Challenges. 6
3.3
Strategies to minimize challenges. 7
4.0 Terms and conditions that govern the contract 7
5.0 Legal rights and obligations of JDPi 8
6.0 Advise for Capgemini UK PLC.. 9
7.0 Different possible sources to be approached. 10
8.0 Conclusion. 11
9.0 References
Figure 1: Procurement Stages. 4
Figure 2: Contracting
Issues. 9
Figure 3: Supply chain conceptual framework. 10
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1.0 Introduction of automotive manufacturing
industry
The report is based on the supply chain
management of the JDPi automotive manufacturer and there is complete discussion
about the challenges and to control the risk in the market. There are
strategies to deal with the challenges that could be used to minimize the risk
of the challenges. It is about the procurement laws and regulation that are
governed by the contract and how these could term and conditions to be
implemented in the contract. In the contemporary business world, it is
necessary to implement the strategies in the business to save the cost of
purchasing and implement the strategies that could be agreed upon the terms and
conditions of the supply chain management. There are different kinds of
procurement and supply chain management that is implemented on the project to
gain the competitive advantage in the market.
There are trending challenges that could be
faced by procurement supply chain management that could be used in the
responsibility and the liabilities of the company that could make development
and overcome the challenges faced by the procurement supply chain management.
There are legal rights and duties of JDPi that are enforced in the company. In
manufacturing industry there must be proper implication of safety measures.
2.0 Main body
Figure 1: Procurement Stages
In the potential working environment, there
must be proper enforcement of the rules and regulations that are arranged in
the JDPi manufacturing industry. Procurement supply chain management has to
face different kinds of the challenges in the manufacturing industry. In
context of JDPi automotive manufacturing industry, there are some challenges
that could be faced by the procurement supply chain management explained as
follow:
2.1 Selection of supplier and
safety of automotive manufacturing industry
There is requirement of delivering the cost of the
product in the quality to determine the cost and scope of the product. There
are different approaches that work with the best practice in the selection of
the negotiation of the benefits in the procedure of the security and quality of
the manufacturing of the vehicle. Quality product could be helpful to gain the
sustainability of the business in the market. The manufacturing industry is
based on the quality of raw material and machinery that is purchased by the
company. Therefore there must be proper selection of the suppliers as
performance of the company is based on the quality of the machinery and raw
material used in the manufacturing industry. All the safety measures and
regulations must be followed that are difficult task to implement and select
the supplier for the raw material.
2.2 Risk management
of
automotive manufacturing industry
When the company is working in the competitive market,
there must be proper allocation and settlement of the risk that could be faced
y the procurement supply chain management. In the case of JDPi there is need to
mitigate the risk as there would be stability in the prices of the vehicle but
quality is required from the product. So company could not take the risk in the
settlement of the quality. The Government procurement supply chain management
must to have evaluated the danger of using a Single Source provider and the
picked supplier's account exhibition. The gracefully methodology may have been
de-gambled had the Government surveyed the relationship risk and considered
conditions inside the agreement for non-execution, entitling them to send for
the elective supplier or look for cures.
2.3 Quality assurance
of
automotive manufacturing industry
Procurement supply chain management must examine the
supply chain of the standards that are determined to check the capability of
the JDPi in the standards of industry. There are a number of ranges that are
implemented in the manufacturing industry that are necessary to gain the
quality in the manufacturing. Procurement supply chain management has to work
according to the standards and rules that could be difficult to handle the
quality and the regulations both at the same time.
2.4 Contracts and agreements
of
automotive manufacturing industry
Procurement supply chain management should examine the
contract with the suppliers that are based on the agreements of the services to
manufacture the vehicles according to the legal standards of regulations. The
agreements are required to be understand the according to the legal
implications of rules that is a hard task to do by procurement supply chain
management.
2.5 Cost and efficiency
of
automotive manufacturing industry
The procurement supply chain management drive is to diminish
cost and improve productivity of the flexibly chain by evaluating the through
life cost of an item. It could be implemented from beginning to removal, by
inspecting the Total Cost of Ownership. This allows complete expenses to be
resolved, empowering an actual existence cycle cost-based choice to be applied.
The Government may include different kinds of taxes that increase the cost and
it could impact on efficiency of the production. In spite of the fact that the
underlying expense may be higher it gives some adaptability, which was required
when a change to the degree was presented.
2.6 TENDERING
The project tendering is actually a process
in which the companies bid to carry out the particular packages essential to
the complete the project. The tendering principle is to make sure that it
achieves the true competition and tenders received which will be evaluated by
making the particular criteria for the project. Furthermore, the development
competitive equilibrium means that the project tender as the addition of the
strategy to complete the project in effective manner and the project valuation
at the basic theories of tendering that can be supported. Although, there are
serious empirical, methodological as well as theoretical inconsistencies are in
the theory. The tendering has also the advantage that it can stimulate the
innovation to provide the service as well as it also gives the opportunity to evaluate
the incentives and the pricing structures again. The main benefit of the tender
is that it gives the best value for outcome in the form of money from activity
of procurement.
2.7
PESTEL ANALYSIS of automotive manufacturing industry
Several
types of problems may exist in the project but some external factors can also
be very influential on the project and can be the reason of success and failure
of the business. In this section, the political factors are discussed which can
have the high impact on the project.
·
Political
Factor
The political factor is very
influential on the project and the workability of the company. In the political
factors, some rules and regulations have been included and legislation is
telling that the government is favoring the low emission vehicles. But it is
also shown a high increase in the taxes of luxury vehicles.
·
Economic
Factor
The economic crisis has damaged the
vehicle manufacturing industry and due to this reason, the demand for the
luxury vehicles is also affected in the critical financial conditions time.
·
Socio
economic
The people in the country are giving
preferences as well as the cultural trends are also affecting the automotive vehicle
industry. Furthermore, JDPI should adopt the socio-cultural value or forces
including the preferences of people by introducing the vehicle quality.
Although, the specific styles and core values in the culture of United Kingdom are
preferred but some regions in the United Kingdom has the high demand for the
vehicle such as London, Manchester and other cities.
·
Technological
It is the very influential external
factor which can business of company successful and the main bridge towards
success. There are many companies in the world that are using the new
technology to increase their growth and business. The company has also take
this fact serious, so the system for the business is being developed by
contracting with the development company. It is necessary because the more technology
the company has, it will have the more market share.
·
Environmental
The environment is changing day by day
due the carbon emission and cause of the pollution. The government is focusing
more on the sustainability of the environment, so the companies are also
focusing to manufacture the electric vehicles which can support in
sustainability.
·
Legal
Some the legal factors are also
discussed in this section. The automotive vehicle manufacturing companies are
expanding regulations on safety of vehicle, regulations for emissions and the
environment sustainability regulations.
3.0 Benefits of JDPi for competitive tendering
approach
JDPi can access multiple benefits and
competitive tendering approaches that can provide the source to the IT system.
although different common challenges are faced by procurement and supply chain
managers and the requirement is to find the solution and possible alternatives
so that the managers can overcome the challenges. There are different possible
ways and strategies that can be used for the minimization of these challenges.The
competitive tendering approach in the present case involves the advertisement
interest of the company to acquire the supplies and services and to respond the
tender in the business (Winch, 2012).
3.1 Benefits
The competitive tendering in JDPi will
promote the business, competition and provide transperancy to the suppliers.
the situation can tern as price tags are driven down but the question here is
what may be cost. The people and companies will further meet the lower
requirement of price and it will cut the commers. The present condition of JDPi
for cutting the corners will eventually result as losses (Cambini & Filippini, 2003).
3.2 Challenges
In our country, the procurement guidelines
are designed to allow the suppliers for the tender to be considered for the
decision of procurement. As JDPi is the leading supplier and tender are not
often not given to suppliers. In this process, only purchasers can consider the
bids from the suppliers. suppose the leading suppliers are not considered then
the purchaser may end up for buying inferior product or services (Gómez-Lobo & Szymanski, 2001). the possible
disadvantages for JDPi are listed below,
1.
JDPi may face barriers to communication
between customers and suppliers.
2.
The cost-plus phenomenon can be used to bear
trap in the purchase of services and goods.
3.
Sometimes, the leading suppliers may not be
getting the tender.
4.
The supplier is forced to use the
poor-quality materials, cheaper and labor conditions. If the cheaper materials
and labor are poor it will affect the product and services.
5.
The buyers are urged to put the tendering
process, checks and balances.
6.
It is possible that the competitive tendering
can be extremely slow process for the agencies, suppliers and tendering
process.
7.
The low margins in JDPi can cause
insufficient profit margin that allow the investment, research and development,
equipment, and new technology (Carter, Kirby, & Oxenbury,
2012).
3.3 Strategies to minimize
challenges
The appropriate type of the solution for the
competitive tendering can vary based on type and complexity of the product
provided by JDPi. The other factors that can affect it are price of the
purchase, one-off, long term supply relationship and other principles of the
contract (Stanley, 2011). Different
strategies can be applied by JDPi for most procurement decisions and these
strategies are listed below,
1.
Open the communication sources for potential
and current suppliers.
2.
Even the research of the purchasing requires
some alternatives, but it is important to find the possible solutions.
3.
The purchasing decisions for the customers,
suppliers and contractors of JDPi are based on the strong trust relationship.
4.
The profit margin must be paid fair.
5.
It is important to develop healthy and
long-term relationship between the suppliers and particularly in the reputable
suppliers.
4.0 Terms and conditions that govern the contract
Capgemini UK PLC compiled the report that was
developed to confirm the system and it could
upgraded to meet the requirements of the company. Considering the
situation, JDPi developed a formal invitation for the tender and the work was
involved for the upgradation of the system (Robertson, 2003). The invitation of tender (ITT) was
issued on the basis of standard terms of IT services ofJDPi. The standard terms
and IT services are that govern the contract are listed below,
1.
Terms that bind the customers and suppliers
of JDPi can only be changed after having the consent of the customers.
2.
The customers will be provided by the
facilities and information and there are necessary steps for the suppliers to
take for the improvement of services.
3.
The responsibilities of the customers are
based on the operational and environmental conditions and the system can only
be used for the usage, testing, controlling, and modification of the system.
the process is designed to ensure that customers are adequately trained the
users in an appropriate way to use the system (Estlund, 2006).
The contact for the project are essential to bound the parities on the
agreed points. The main benefit of the contract is that the constructor or the
service provider cannot break the rules in the project and the same thing is
also applied on the clients. Every type of regulations and rules related to
project will be mentioned on the contract. So, the work will be done by the
contractors will purely be legalized.
5.0 Legal
rights and obligations of JDPi
There are different aspects of contract and
negligence of business and it can be analyzed on the basis of legal patterns.
The law and procedures are designed to reduce the aspects of contract and
negligence for the business. the case is extreme important and business issue
the cropped-up conditions in the performance. According to McKendrick (2014)
there are multiple types of obligations and contracts that are related to the
business and the practiced regulations and norms are defined for the specific
business. the rules and legal laws can vary in terms of intensity but the
overall rules and regulations for business contracts are almost same in nature.
JDPi automotive manufacturers are operating number of IT systems, therefore the
legal rights and obligations are also under the designed rules of artificial
intelligence. Since JDPi decided to replace the previous version to the new
version it is important to select an appropriate level of management and
discard the existing system in a most effective way. the legal considerations
are to make improvement in the previous work with general efficiency and
effectiveness, response time must be speeded up, and integrated system in the
company must be designed in such a way that it can work under the rules and
regulations defined by company and government (Augenstein & Kinley, 2013). The competitive
tendering offers are created for the development and implementation of new
software system under the defined resources. JDPi is not in position to deal
with the Capgemini UK PLC. The focus of JPDi case study is to appraise the main
contract issues and find the alternative implications under the legal
conditions for major programs and project. JDPi is required to reconsider the
legal issues that are linked with the formation of supply chain. Even JDPi is
facing challenges in operating the IT system but still new strategies and
implications are supposed to be under the legal and law aspects. For the contract,
the contributor content is developed for preservation and disclosure is
reasonable for the legal process, claims for the content violation, rights for
the third party such as Capgemini UK PLC, and protection of rights, personal
safety, property, and public. In case of any provision, the terms are held for
the not performable and illegal and the validity of the remainder will not be
affected (Stanley, 2011).
Figure
2: Contracting Issues
Source: (Li, et
al., 2003)
6.0 Advise for Capgemini UK PLC
In this section, some advisory comments are given
for the Capgemini UK PLC because it has faced several types of the problem and
failures into the software. Due to the failure on the software, the company has
to loss the very important and sensitive data including staff demotivation.The
software should be replaced and upgraded because the technology in the world is
consecutively changing day by day. The new software which will beimplemented in
the company,Capgemini should have to make deal the JDPi and this thing should
also be added in the contract paper along with the signature of the stakeholders
of JDPi, and ensureJDPi that the software will be delivered byCapgemini UK PLC
timely after making some amendments to the company in exchange of agreed
payment amount and method.It should also be mentioned clearly in the contract
that the payment will be given to PLC for the changes or upgradation will be extra
amount in the project.
Figure 3:
Supply chain conceptual framework
Source: (Ivanov & Sokolov,
2009)
7.0 Different possible sources to
be approached
The procurement problems are very challenging
which must be resolved as well as must be by using different types of sources in
the procurement procedures. The good approach for the procurement in the
company is the use different types of sources. So, some different possible
source which should be approached are discussed in this document. The first
source is developing a governing supply chain council that will have the
purpose to give appropriate direction through instructions as well as provide
help to align the strategy of the supply chain with the overall strategy of the
company. Secondly, the company must need to properly align and staff the supply
chain organization which can be the very difficult as well as very challenging
task for the company to organize the supply chain function in a way that
enhance the effectiveness as well as bring corresponding benefits to the
company. Another source for the procurement is very important as well as can be
placed at the level of essentials for the company that technological work. The
information technology should be introduced in the company which can increase productivity
as well as enhance the progress and performances of the employees and overall
company. JDPi should to replace the current system with the new technology and must
focus on the new hardware or system for upgraded technology (Canova & De Nicolò, 2003).
8.0 Conclusion of automotive manufacturing
industry
It is concluded that the it must be proper
enforcement of the rules and regulations that are arranged in the JDPi
manufacturing industry. Procurement supply chain management has to face
different kinds of the challenges in the manufacturing industry. Hence, there
must be proper selection of the suppliers as performance of the company is
based on the quality of the machinery and raw material used in the
manufacturing industry. Procurement supply chain management should examine the
contract with the suppliers that are based on the agreements of the services to
manufacture the vehicles. In this process, only purchasers can consider the
bids from the suppliers. The other factors that can affect it are price of the
purchase, one-off, long term supply relationship and other principles of the
contract. Considering the situation, JDPi developed a formal invitation for the
tender and the work was involved for the upgradation of the system.There are
different possible ways and strategies that can be used for the minimization of
these challenges. The case is extreme important and business issue the
cropped-up conditions in the performance. JDPi is not in position to deal with
the Capgemini UK PLC. JDPi is required to reconsider the legal issues that are
linked with the formation of supply chain.
Recommendations of
automotive manufacturing industry
Followings are
the suggestions made according to the case study analysis:
·
JDPi must continue to undertake different efforts to strengthen the sustainability
in the management of the company. It should promote different methods such as
the cost and benefit structure to realize that management is working according
to the competitive market requirement.
·
JDPi must accelerate its business expansion and to implement growth in
the monitoring of market conditions to gain the new products and quality of the
product according to the requirement of customers.
·
It should consider making different priority product according to the
market. That makes it possible to gain the competitive advantage among the
other core manufacturing in the segmentation of market. With the increasing
production and facilities increase to the customer, it have to take different
decision about the minute middleman management to show that engineers are more
accurately working according to the instruction of authorities.
·
There must be support to consolidate management on the global level so
that the power of workplace and diversity of the human resource management
could be dwelled on international level.
·
As concerned with the instructions and infrastructure safety measures,
there must be compliances and observations of laws and regulations that
actively participate in the manufacturing of vehicles.
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Filippini, M. (2003). Competitive tendering and optimal size in the regional
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Canova, F., &
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