IBM 220 PROCUREMENT AND SOURCING ASSIGNMENT DATE: 22.7.2023 STUDENT NAME: SANDIYA CHHETRI (0829884) LAKSHAY NARANG (0832534) KARTIK SAINI (0823392) BALJINDER KUMAR (0829340) ANMOL DADWAL (0825837)
List of potential suppliers for each spice: CHILLI: Sirishaa Enterprises: Location- Chennai, Pricing: Rs.103/Kg Quality standards: FSSAI Kissan Enterprises: Location: Gujarat, Pricing: Rs.220/kg Quality standards: FSSAI Encipienc Private Limited: Location: Maharashtra, Pricing: 151/kg Quality standards: FSSAI TURMERIC: Virdhara International: Location: Gujarat, Pricing: Rs.50/Kg Quality standards: ISO 9001; 2008 and HACCP Marudhar Impex: Location: Ahmedabad, Pricing: Rs.500/Kg Quality standards: EU Certified CUMIN: Ratnaraj Foods: Location: Ahmedabad, Pricing: Rs. 190/Kg Quality standards: ISO 22000 and HACCP Apex International: Location: Jaipur, Pricing: Rs.550/Kg Quality standards: ISO 22000:2008, WHO-GMP ORGANIC AND HALAL certified CARDAMOM SEEDS: Cardamom World: Location: Kerala, Pricing: Rs. 950/Kg Quality standards: ISO 9001:2005 PEPPER: Shudh Masala Bhandar: Location: New Delhi, Pricing: Rs. 650/Kg Quality standards: FDA certified Dharmanandan International Pvt. Ltd .; Location: Gujarat, Pricing: Rs.550/Kg Quality standards: ISO9001:2015
Supplier Selection criteria: Quality: Supplier must meet the quality standards, certificate and international trade standard and must ensure that spices are safe to consume. Pricing: Supplier must provide the best quality spices with low price. Follow rules and regulations: Supplier must follow the legal and ethical rules and regulations in their production and exporting process. Experience: We will select the supplier who has experience in exporting the spices in Canada and make sure that the supplier has good reputation in exporting industry. Delivery time: Supplier must able to deliver the spices with in the agreed-upon delivery schedules to avoid any disruptions in future trade. Negotiation Strategy: When negotiating with suppliers who are engaged in international exports, we will follow these effective negotiation strategies: 1. We will conduct thorough research and gather information about the supplier's business, products, market conditions, and competitors to gain an advantage in the negotiation. 2. We will focus on building a strong working relationship with the supplier by fostering trust, rapport, and regular communication. 3. We will emphasize the mutual benefits of the deal, aiming to create a win-win situation for both parties. 4. We will purchase the product in a bulk amount for cost saving. 5. Leveraging our volume and value as a customer, we will negotiate for better terms or discounts based on the value we bring to the supplier's business. 6. To attract more favourable terms, we will demonstrate a commitment to a long-term partnership with the supplier. 7. When negotiating with suppliers from different countries, we will be mindful of cultural differences, respecting norms, communication styles, and business practices. 8. We will be prepared to walk away from a deal that doesn't meet our requirements, demonstrating that we are serious about our terms and expectations. 9. Having alternative suppliers as backup options will provide us with more negotiating power and flexibility. 10. To avoid future disputes, we will ensure both parties have a clear understanding of expectations, responsibilities, and commitments outlined in the agreement.