Reforms in SCM with focus on procurement process

Abstract

The study looks at the last year procurement data provided by the firm and provides an analysis of the strategy to look into the future with the help of the Kraljic Matrix. So firstly only A and B class items are taken for analysis. The major item groups are then identified which are differentiated by the schedules of their procurement throughout the year. Every item group has different vendors supplying different parts within that category. Each supplier has different lead time for a different item and can supply multiple items across the item groups. For a given schedule, last year expenditure, average lead time and standard deviation are calculated. The coefficient of variation is taken to be riskiness factor for that item group.