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A sourcing report on Green Globe papers




A sourcing report on Green Globe papers;Summary;Green Globe papers are a premier industry producing various ranges of paper products. The industry has been in business since last 15 years and is now a leading brand in the US. The company has its reach in many states and their products are distributed worldwide. Thus serving people globally has been a successful venture for the company. The company produces some fine quality paper available in the market. Along with high quality paper, there are a range of paper products with different quality and costs according to the application requirement.;The company has adapted the strategy of providing good quality services at best prices hence are very popular. Green Globe papers are well known for its quality products. But along with quality the cost is also looked at very carefully. The paper demands of US alone are huge and are increasing annually. This demand is also taken care successfully by increasing number of manufacturing units. The company also aims towards conservation of natural resources and sustainable development. This counts for a truly green solution.;This helps in achieving corporate aims and being a preferable brand among the users. The products are high quality, cost efficient and from green technology thus many customers prefer them. The company uses waste and recycled plant matter for production of some paper types. This reduces cost, solves disposal cost, prevents excessive cutting of trees and thus serves the environment. With increasing demand in paper, the technology behind paper manufacturing is also constantly being developed. Scientific research is being thoroughly put to improve the quality of paper, improve costs and to plant trees for paper production. This helps to set and improve the company profit margins. A considerable part of budget is allotted for research and development of the product.;Impacting issues for the company;Milestone and time line of activity;Description:;The US paper demand dropped suddenly in 2008-2009 and since then it is more or less constant. It is seen that the demand started increasing since 2012 and it is estimated that it will be increasing further. The projected demand for paper in 2015 will be 100 metric tonnes. Which is a considerable increase from the previous years?;To accommodate this demand the company has opened three more production units with manufacturing capacity of 10 metric tonnes annually. This has been an important milestone for the company with which the projected goals of paper requirement can be fulfilled.;Sources of Supply;The company requires constant and ample supplies of wood, chemicals like chlorine, ammonia, different salts, machines and equipments, miscellaneous tools etc. The suppliers for existing plants are trustworthy and sufficient to meet the current requirements, new suppliers are being appointed for the new plants. A large study in the industry and tenders were passed to select the suppliers. The company has grown its own plantations to meet a part of requirement. The remaining part comes from recycled products and from external suppliers. Thus most of the requirement is satisfied by the plantations and recycling, hence a lot of cost is saved, contributing to better quality and cost efficiency of product.;Quality standards;The company manufactures various types of papers in various sizes.;BUSINESS AND RELATED PAPERS;BASIC SIZE*;TYPES OF PAPER;17" x 22";Bond;Laser Bond;Carbonless bond;Ledger;Copy paper;Tablet;Envelope;Translucent Bond;Form Bond;Xerographic Bond;Safety (paper for bank checks);ADVERTISING AND RELATED PAPERS?;Coated and Uncoated;BASIC SIZE*;TYPES OF PAPER;25" x 38";Book;Opaque;Gravure;Text;Label;Vellum;Offset;20" x 26";Cover;25 1/2" x 30 1/2";Index Bristol;22 1/2" x 28 1/2";Printing Bristol;24" x 36";Tag Stock;The quality standards followed here are ISO standards with appropriate certification for strength, texture, appearance, toxicity, chemical content, manufacturing process etc.;- Access Management Skills and Experience;The employees hired have been working with the company for many years. They have an expertise over the process and are considered to be one of the best in the industry. The company also has advanced research and development facilities available. The employees are well trained and their skills are kept up to date by frequent training. Also the latest production measures are being implemented to produce the safest products.;The management ensures the workers get the optimum working environment. Programmes such as brainstorming etc are conducted to get ideas and constant feedback on compares polices.;- Review Quality Programs;Thaw company implements various quality improvement programs like training the employees regularly, also six sigma techniques are being adapted recently. The company specially focuses on quality of products and thus these programs play a very important role in it.;- Review their Operations and Technology;The company works on forecast and production strategy. Using its fine strategy network the annual demand is estimated. Then this demand is tried to be fulfilled by production. As the production required a lot of time and resources, the products are pre manufactured based on forecast and then let into the market. Hence there is ample of safety stock.;The technology used is the latest in the industry. The complete process is automatic and is closely monitored to achieve quality goals. The product is tested for many purposes like colour, brightness, finish, strength etc.;Supplier Evaluation Criteria and scoring Matrix;Vendor;1;2;3;Capability;78% of requirement;120% of requirement;200% of the requirement;Machinery, Labour, Knowledge;Good quality of raw material, good machines and knowledge;Acceptable quality of product.;Average quality raw material;Financial Standing;Financially weak;Financially strong;Strong;Capacity and hours of operation;Cannot fulfil all demand;Can fulfil all demand but larger lead time;Can fulfil all demands but average quality;Location of transportation and labour to facility;Very close to manufacturing plant;Far from plant;Very far from plant. Transport also expensive.;Testing Capabilities;High quality material;Average;Average;Storage - Warehouse;No safety stocks;Ample of safety stocks;Ample of stocks;Quote Submission;Required following materials in prescribed quantities;1. Fibres 45 MT;2. Water supply 2000 T per day;3. Fillers 100 T;4. Retention aids;5. Dyes 45 T;6. Fluorescent whitening agents (FWA) 600 T;7. Sizing agent 100 T;8. Starch 8 MT;9. Wet strength agent order based;10. Other auxiliary chemicals used to influence paper properties;- Terms and Conditions;All the products must be available with prescribed qualities. Safety stocks should also be maintained. The lead time requirements must be strictly followed also the quality must be consistent. Ability to fulfil sudden demands with same efficiency and quality.;- Confidentiality;All the transactions between the Vendor Company and Green Global must be kept secure and confidential;- Warranty: The raw materials must come with at least 3 months of warranty.;Dates;- Due date of Quote: 6 November 2014;- Due date of Samples: 12 December 2014;- Production shipping deadline: 20 December 2014;- Date of Production: 16 Jan 2015;Supplier Quote;- Price: $360000 per load of shipment;- Discounts: 8% discount after three orders;- Packaging: Delivered fully packed and protected from weather.;- Lead-times: 2 weeks after payment;- Production Lot size and quantity breaks: Lot size = 20% of requirement;Supplier Selection and Product Acquisition;- Completeness of Quality, Cost and Delivery: The supplier meets all the necessary quality, cost and delivery conditions;- Certifications and Practices: All the certificates are checked and found satisfactory.;- Agreements on Price of Cost adjustments due to Raw Materials and Currency;Preliminary Award;- Must produce sample parts off of a production process;- Submit parts to the Buyers Company Quality group for validation of Specification;Award the business;The business partnership is finalised and first order is placed. A sample of goods is ordered before finalising to the order along with all legal documents.


Paper#25113 | Written in 18-Jul-2015

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