Rajneesh Kumar’s Post

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Sourcing from India? We do RFQ Management, Factory Audits, Quality Inspection and Vendor Management.

A manufacturer is currently undertaking a New Product Development project. The product is the assembly of machined casting, CNC machine components, and stamping parts. So the manufacturer is managing multiple suppliers. The casting supplier was running late.  The purchase manager anticipated the risk (of project delay). He reached out to the foundry's top management and negotiated. The casting supplier paid more money, took a beating, and delivered on time. A new problem arises now. The stamping supplier surprised the manufacturer. He announced a delay, and it's a non-recoverable delay. The assembly at the manufacturer's end is late now. Let's return to the casting supplier. He spent extra money, took the beating, and the project is still late. The top management was disappointed but kept it to himself. Several months passed. Once again, there is a delay from the casting supplier. The buyer once again, approached the casting supplier's top management for speeding up. This time, the foundry's top management doesn't view it as a serious problem. What should the purchase manager do now? #procurement #vendor #management #globalsourcing ------------------------------------ My last post (Case study) received 11.6k impressions. 👎 But a few interesting comments, teaching a new perspective.👍 I am trying my bit to make meaningful conversations here on LinkedIn so that we can learn from each other. Let's help the community by commenting, liking and reposting (the meaningful post). ------------------------------------

CMA Varun V

Practicing Cost & Management Accountant | Partner at Jayaram & Associates and Cost Consultant at Pro-Active Solutech (India) P Ltd.

3mo

Even in the first instance, the Casting manufacturer was running late. If it is due to RM delivery issues with the Casting manufacturer's vendor(s), before even their customers ask them to speed up their deliveries, the Casting manufacturer has to work more closely with their vendors to ensure a stable schedule of supplies. The purchase manager in this instance has to work in a loop ensuring that all suppliers including the stamping suppliers delivers the parts on time

Santhosh Kumar

Managing Director @ Marcus Hi-Tech Engineering PVT LTD | Die Casting Components | Lighting Components |

3mo

At this point, it might be time to reassess the relationship with the casting supplier and explore alternatives. Consistent delays signal a deeper issue, and relying on negotiations alone might not be enough anymore.

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Harissh Lunanii

Contract Grade Customized Furniture & Lighting for PUBS | BREWERY | BARS | CAFES | HOTELS | RESORTS | OUTDOOR

3mo

The experiences you share look like a endless chain of problems everybody in the industry facing. True to it's core. Great observations and articulation. Keep this going.

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