Scm Operations Case Study

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Pages: 11

Category: Business and Industry

Date Submitted: 04/04/2009 05:40 PM

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The group would like to acknowledge the support and information given by Behere Agri Nutrients staff and management for this report.

Executive Summary

Group 2 have identified an example of an operations opportunity within Behere Agri-Nutrients. Behere is one of this countrys leading fertiliser manufacturers, that is a 100% farmer owned co-operative.

Following a review of existing processes, it became apparent that there were significant benefits to be gained by reviewing the existing purchasing system. At the heart of the business operations the existing purchasing processes were aged and bordering on inefficient. The company was faced with a number of challenges including;

• The Behere employee purchased high numbers of small orders (65% less than $300).

• A total of 39 separate distribution locations

• An existing complicated (62 step) purchase requisition/order process

• The need to improve and speed up the month end reporting

• Moving the business to a new company financial software package

Group 2 identifies the implications to the total business from the new purchasing strategy identifying the advantages and the risks the business faced. It will discuss the training and implementation of the new system and the integration challenges identified through the supply chain. It examines how the business determined the merits, through a business case, of the re-development and renewal of the existing purchasing system before committing to the more significant change.

The benefits will be quantified by the group, and a conclusion as to the effectiveness of Behere’s plans and final integration of the new purchasing system into its operations.

The Current Purchasing Process

All purchasing, prior to the implementation of Purchasing cards was done through either paying for the goods from your personal funds and claiming back through an expense claim or raising a Purchasing Request (OR) from the company’s ERP system,...