Page 152 - DMGT554_RETAIL_BUYING

Unit 10: Purchasing in the Domestic and Foreign Marketplace

Notes
6. There was no compliance and supplier / vendor evaluation taking place to ensure
vendor accountability;
7. There were very little supplier / vendor contracts in place (high risk of supply chain
disruption);

8. More than 48% of all deliveries from suppliers / vendors were late;
9. Their licenses and contracts were not properly being managed;
10. No meetings were taking place to progressively improve their procurement and
financial systems (finance, purchasing, and shipping/receiving); and
11. A host of many other things.
We proposed solutions to centralize procurement for them so that they could understand
how a centralized, compliant, proactive, and engaged procurement department would
benefit their organization. This billion-dollar plus client decided to go forward and we
went to work.

Initial Need(s)/Project(s)
Centralize Procurement and setup awarded supplier / vendor contracts for: lower cost,
while maintaining quality, better delivery, less inventory, ability to grow with our client,
fresh grocery items, and other specifications as set forth by their needs.
Items Needing Procurement
The entire item list needing procured was in the thousands. Below are the general areas
that we developed that contained the general idea of each main area.
 Eggs and Dairy (milk, half and half, shredded cheese, butter, and cottage cheese)

 Over the Counter Medications (aspirin, cough medicine, lip balm, throat lozenges,
and sinus medication)
 Meats (bologna, ham, pickle loaf, salami, and summer sausage products)

 Drinks (juices, soda, coffee, energy drinks, alcoholic beverages)
 Dry and Canned Foods (bread, buns, dinner rolls, soup, vegetables, canned meat,
chili, stew, pickles, relish, catsup, mustard, and mayonnaise)

 Sweets and Snacks (candy, chips, dried meats, canned pudding, nuts, sandwiches,
nachos, and fountain drinks)
 Additional Items (batteries, coolers, flashlights, candles, maps, windshield cleaner,
motor oil, and tobacco)
Additional Project(s) Conducted
From the initial project conducted, Above the Standard Procurement Group® (ATS) found
that the organization was not organized. Some examples were: No meetings for purchase
and finance close out, software not licensed properly, purchasing folders were not
centralized (they had to be gathered from more than 200 locations and the corporate office
departments, all purchasing files were not complete, there was no vendor list besides for
payment purposes only in finance, they had no understanding of cost reduction, the
purchasing staff did not understand Request for Proposals and bidding processes, and the
several million software package contained in the purchasing module which was not
being utilized.
Contd...

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