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A sourcing report on Green Globe papers




Question;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;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#53659 | Written in 18-Jul-2015

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