Dashman

The revised purchase Plan:

1. Request all Plant executives to submit their inventory levels as well as make a report of monthly requirement of raw materials for next 6 month.

2. List out all the suppliers providing the required raw material, the amount of raw material they can supply, including the scarce material and ask for quotations for the same.

3. Once the figures of requirement as well as supply of raw material is available, call a High level meeting at head office calling the plant heads and purchase department heads of each plant to discuss the new norms.

4. High level discussion with all the purchase executives working out the logistics and identifying the best suppliers for each plant. The best supplier and the suitable plant will be identified based on the raw material required, raw material supplied, distance between the plant and supplier etc.

5. The plant heads will discuss and come to a conclusion and agree to the supplier allotted to them, in case of any discrepancy the plant heads can ask for a change of supplier or any additional supplier in the meeting itself.

6. Now once the plants and suppliers are mapped, each of the individual plants can deal with the suppliers independently without the intervention of head office.

7. In case of any exigency, the plant is unable to procure the raw material from the designated suppliers, the plant needs to notify to the head office and take fresh approval to deal with new suppliers.

8. For all the raw materials which are now scarce. The basic dealings will be carried out by the head office itself. The possibility of increasing the inventory of these scarce materials in place of the easily available raw material in the warehouses will be explored. The head office will work out a scheme to ensure that the company becomes an important customer for the suppliers of scarce material. This can be achieved by placing bulk orders to suppliers, ensuring more advance money is given to...