RETAIL CATEGORY MANAGEMENT

CASE ANSLYSIS -2

CASE STUDY ON

Developing a Buying Plan for Hughess

SUBMITTED BY

M.G.BHARATH KUMAR ROLL NO. 12

Strategic Purchasing Manufacturers that plan, manage, and control their materials management and purchasing functions can significantly improve cash flow, profits, and customer satisfaction. A strategic purchasing plan can achieve these results. Establishing an effective strategic purchasing plan requires a manufacturer to undertake a five-step process of developing goals for improvement and monitoring its progress. I. Business Performance Measurement The first step in developing a strategic purchasing plan is to establish and evaluate the companys materials management performance measurements and identify areas of potential improvement; for example, inventory turns and payable days as they relate to measurements of cash flow. For every purchased product or service there is an opportunity for improvement in areas such as price, quality, service, delivery, consignment, and supplier-value added. Profit improvement goals should be established to reflect what is possible and not what is easily attained. Most organizations can expect to achieve a 20 to 60 percent improvement for each performance measurement, depending on the particular goal, the creativity utilized, and the companys commitment. It is important that current performance levels and goals for improvement are communicated to employees. In addition, suppliers should be advised of goals that affect them. A good way to communicate these goals is to design a business performance measurement matrix. II. Organizational Strengths Once the manufacturer has identified the areas it wants to improve, it must assess its organizational strengths to determine which assets will be needed to achieve those goals. Assets useful in strategic purchasing include material requirements planning software (MRP), business forecasting/budgeting methods, floor plans that promote timely communications, business teams, and cycle time compression. One of the most important strengths a company has is its personnel. Every organization has employees who not only understand the need for improvement but can also convert goals into reality. Employees that can accept responsibility for project leadership and completion should be recruited to serve on cross-functional business teams that will pave the way for the rest of the company. To get all employees involved in the improvement process, a manufacturer should implement a closed-loop management system that provides feedback to employees, encourages the setting of goals, and emphasizes the

measurement of progress as it is made. This system can organize, train, and mobilize all employees with a focus on improvement. Above all, the crucial element for success in any strategic purchasing plan is managements commitment to the process. A philosophical commitment is not enough-management must be ready to fully participate in the strategic purchasing plan. All employees will be asked to change the way they view the business and to develop a discipline of continuous improvement, and unless management actively participates and demonstrates its commitment, that change will not occur.

Supplier Integration Suppliers are the single greatest underutilized business resource. Most manufacturers fail to see suppliers as an extension of their organization and dont share information with them. A companys suppliers share in its success and can be willing and valuable participants in the strategic purchasing plan. Suppliers are experts in their particular businesses and have knowledge and expertise that can be valuable to the company seeking improvement. The manufacturer should inform current suppliers of the companys strategic purchasing plan, including the magnitude of improvement that is expected, and seek their input. Its also a good idea to contact suppliers that might want to increase their level of business with the company and give them the opportunity to participate.

Strategic Purchasing Suppliers can contribute to a manufacturers success in several ways: Assist in the forecasting of high dollar and long lead time purchases. Results: Supplier may commit to stocking materials Improved on-time delivery Reduced setup charges Reduced transportation costs (e.g., emergency delivery) Identify areas of excessive specifications and other areas of high costs and provide input on lead time reduction.

 Aid in new product introduction. Results: More accurate introduction lead times, estimated costs, and design/costs/specification relationships Reduced time-to-market cycle Strategy for Improvement After investing considerable time and effort into identifying goals and assessing its organizational strengths, amanufacturer must devise an implementation strategy that will foster the success of the strategic purchasing plan so thatits efforts will not be wasted. A good method of ensuring success is to begin the improvement process with the low hanging fruit-that is, choose a goal that is sure to be attained as the first step in the plan. When that goal is attained, it will gain momentum for the plan and inspire confidence among employees. It will also discredit any doubting Thomases. Measure the Results To ensure success, a method of measuring progress toward goals must be established. Measurement is important because it creates discipline and a routine of improvement. It identifies those teams and employees who may require help and provides an opportunity to recognize and reward achievement. To support the momentum and enthusiasm necessary for success, incremental progress should be conveyed to employees. A successful strategic purchasing plan is the result of a business that understands the magnitude of change required, has the conviction to commit to the change process, and utilizes the tools and concepts of organized and controlled change management. As a result, the manufacturer will become financially stronger and more responsive to the market place, resulting in a larger market share

DEVELOPING ELITE TEAMS

Building and maintaining the critical components of truly effective teams

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Team Improvement Team Dynamics

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Team Building Excelling During Change Team Vision & Purpose Team Buy-In Overcoming Team Dysfunctions

Our Developing Elite Team training aims to build and maintain the critical components of truly effective teams so that this becomes a self sustaining and integral part of your organization We are aware that you may want a one off team session to get the action, motivation and inspiration the team needs. These one offs are incredibly effective. We also work with a lot of organizations on designing programmes, small or large, to make sure that each session builds on the last. These are ideal for groups where you know a single day or event may not be enough to get the progress you want over the next 3, 6 or 12 months. Below is an overview of some of the courses that we run, however we know that you want results, not just training. We therefore tailor all of our workshops in order to achieve the results you want.

Team Improvement This particular workshop is focused on HOW the team can work better together and make tangible improvements in the organization. It can be done as a one off workshop and is delivered in an inspiring way whilst being incredibly focused on making tangible progress. You may want this workshop

to be delivered regularly to ensure that the inspiration generated and action created is followed through and becomes part of the team culture. As a result of this workshop delegates will; Add immediate value to the organization by building their collective strength to be even more effective Find solutions to the teams collective challenges to make sustainable improvements Pull team members together and work more effectively as a unit Leave with a specific action plan to individually and collectively improve performance so that the added value can be maximized Avoid blaming and excuses for poor performance whilst creating a solution focused mindset and forum for the team to adopt moving forwards.

Team Dynamics The ability to work effectively as a team is often a challenge no matter what position individuals hold within an organization, or whether they are working with internal or external teams. The purpose of this training is to share with delegates successful team working traits and ideas which can be easily understood and applied back in the workplace. Delegates will leave this workshop with: An understanding of the 4 different personality types and the behaviors associated with these in order to maximize each individual personality type Practical insights into how people respond so that they can be managed in the best way to get the most from them Methods for working with others who may be more difficult so that their performance can be improved. Knowing which personality profiles are best suited to which team roles in order to build and successfully manage an elite team An understanding of the perceived distance between team members so that bridges can be created to close this gap

Team Building Whilst there may be no such thing as a perfect individual there can be a perfect team. In an increasingly competitive market, the ability to work in a team, often with people we have not chosen to be with, is becoming ever more important. By exploring the characteristics of successful teams and linking up how a team comes together to achieve its objectives in the real world of work, this highly interactive workshop pits individuals against the

constraints of time, resources and communication to solve a challenge as effectively as possible. Outcomes for this workshop include: Increased morale and group identity Take away tools for forming and maintaining high-performance teams back in the workplace Solving issues and challenges with increased certainty that future challenges can be overcome Understanding of individual strengths and weaknesses within a group setting Increased skill in time and crisis management which can save valuable financial resources Greater familiarization with each other in a relaxed, informal environment Awareness of the advantages of cooperation over competition

Excelling During Change Change is inevitable, but progress is not. The effectiveness with which teams collectively deal with the change they are faced with determines the likely success of the project they are working on. This topic explores the characteristics that teams need to display when faced with change and the behaviors required to make the most of these opportunities. Your delegates will leave this course: With a greater awareness of what holds them back when change is taking place so that they can alter this to their advantage Knowing how to support their team colleagues during this process in order to help them make the most of their opportunities and add the greatest value With a collective understanding of how their team individually deals with change so that they can work more effectively and confidently towards the same shared objectives With an implementation plan to move them, the team and the organization forward to even greater success

Team Vision & Purpose The vision for the team and the underlying purpose which each individual team member has behind this are two essential requirements for elite teams. Without a vision that everyone is bought into and without a purpose for contributing towards this, teams are unlikely to be maximizing their potential. The purpose of this course is to help create or re-invigorate that

vision and awaken the purposes that are going to drive the team forward and meet this vision. After taking part in this training delegates will leave with A compelling vision that the team are collectively bought into Knowing their real purposes behind this vision to help them achieve it A strong emotional connection to the vision and the purpose of their work Techniques to keep people on track and focused on their purpose Greater clarity on why people are doing what they are doing so that they can make progress with even greater certainty Less uncertainty that colleagues arent working towards a shared objective

Team Buy-In Having the buy-in of your team and colleagues to what you are striving to achieve is vital to the overall success of the team or project they are working on. It is also an important to ensure that buy-in is regularly obtained to help keep momentum and ensure the sustainability of the efforts that everyone is collectively putting in. As a result of this training your team will leave with: The ability to obtain buy-in quickly so that you can achieve your organizational goals more effectively Greater certainty that the team are all pulling their weight A plan to make sure the team are adding the greatest value to the organization More confidence to assert themselves with colleagues when progress isnt being made towards the outcomes desired

Overcoming Team Dysfunctions There are some common themes with teams which prevent them from being truly elite and performing at their best, these dysfunctions can have wide reaching impact if they arent resolved. Ultimately, what your team will leave with as a result of this programme is: A higher degree of trust between one another so that challenges can be discussed in a more open, honest and productive manner The ability to master conflict and harness the creativity which comes as a result More commitment between team members towards organizational outcomes

 Greater accountability of personal responsibilities An increased focus on the results which will make the biggest contribution to achieving the objectives of the organization.