How to Commit in 28 Hours

How to Commit in 28 Hours

Candidates will complete a supply chain relationships exercise for their own organizations. Please compile relevant information about your organization for use in this exercise. (All information will be treated as confidential, and used for grading purposes only.)

Instructions

This activity focuses on building supply chain commitment and a partnership with an important supplier.

1. Select a supplier you currently conduct business with in your own organization. This supplier should be one with whom you think your organization should pursue a closer supply-chain relationship.

The solution of this assignment is with reference to my past employer in Pakistan which is involved in the assembly of Honda Civic and Honda Fit variants. I worked as an executive engineer in purchasing department for 4 years.

The Background of the situation presented in this assignment is Procon Industries is a company that makes Car and motor bike seats in Pakistan. To keep the quality of seats as per Honda Motor Japan standard, most of the spare parts used in car seat making are imported from Japan. These spare parts were imported by Honda Atlas Cars Pakistan (HACPL) itself along with other CKD (complete knocked down) kit and then provided to the Supplier (Procon Engineering). HACPL pays heavy custom duties on these spare parts as most parts are under 35% custom dusty while others are on 50% depending on the type of part. To promote local industry, government of Pakistan started a program according to which if the supplier order and import part it self, there would be a duty benefit to him as it can get most of part on 5% and some on 10% instead of 35% and 50% respectively.

Below mentioned details are about the meeting in which supplier (Procon Engineering) will present the its project plan that how it will manage this transition, from OEM import to Supplier’s import, without disrupting the Car production plan and preventing any inventory or overstock pileup.

The Diagram below is the perfect illustration of this scenario

1. Organization: Honda Atlas Cars Pakistan Ltd (HACPL)

Supplier: Procon Engineering

2. Supplier’s Products: Honda civic car seats, Honda Fit car seats

3. “How to Commit in 28 Hours” meeting preparation

a. Organization’s cross-functional, multilevel team

i. Associate Purchasing (responsible for communication