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Stakeholder Relations

‘cmSAMEER AFRICA LIMITED
IMPROVING THE SUPPLY CHAIN


TO: THE MARKETING MANAGER
FROM: THE MARKETING ASSISTANT

 
Contents
1.1 DMU ANALYSIS - DIAGRAMMATIC SUMMARY 3
1.1.1 MINOR PURCHASE – VALUE OF KSH. 30,000 OR LESS 3
1.1.2 MAJOR PURCHASES, VALUE OF MORE THAN KSH 30,000 4
CHAPTER 2: BENEFITS OF LONG TERM SUPPLIER RELATIONSHIPS 4
2.1 DELIVERY OF QUALITY AND CONSISTENCY 5
2.2 FLEXIBILITY 5
2.3 DISCOUNTS AND PRICE REDUCTION 5
2.4 SECURITY OF SUPPLY 5
2.6 SAVINGS THROUGH PRICE 6
2.7 FAMILIARITY 6
2.8 JOINT QUALITY IMPROVEMENT TEAMS AND PRODUCT DEVELOPMENT TEAMS 7
2.9 MARKET TRENDS AND FUTURE EXPECTATIONS 7
CHAPTER 3: PERCEIVED RISK 8
SAMEER AFRICA LIMITED – SUPPLY CHAIN 8
3.1 EXTERNAL RISKS 8
3.1.1 SUPPLY RISKS 8
3.1.1.1 CHANGING PRICES/SWITCHING COSTS 9
3.1.1.3 SINGLE SOURCE 9

CHAPTER 4 :IMPROVING SAMEER AFRICA RELATIONSHIPS WITH ITS SUPPLIERS. 13

5.1 THE TARGET AUDIENCE 13
5.2 THE COMMUNICATION OBJECTIVE – WITH SUPPLIERS, WITH MANAGEMENT, WITH EMPLOYEES AND WITH THE PROCUREMENT DEPARTMENT 14
5.3 COMMUNICATING WITH SUPPLIERS 14
5.4 COMMUNICATING WITH MANAGEMENT 14

References -
Appendix 1 – Sameer Africa Limited - the company
Appendix 2 – The Procurement Process
Appendix 3 – the DMU analysis

 

CHAPTER 1: SUMMARY OF DMU IMPACT ON SUPPLIER RELATIONSHIPS
From the audit conducted on the procurement process at Sameer Africa Limited, we see that there are two types of processes that require to be followed when the procuring goods or services at Sameer Africa Limited. One is for purchases whose monetary value is below Ksh. 30,000 where the user requests for the good or service using the E-PROC® system which is approved by the head of the department. The head of department then sends the request to the procurement departments who sends out a request for quotation and picks out two out of those sent whose value is fair (cheaper).The buyer then liaises with the user to pick out the favourable supplier. Once this has been...