Introduction

            The following report reflects on strategic procurement which is a difficult thing to handle for any organization like Cap Market. Strategic procurement in the Cap market generally requires the involvement of the entire organization (Mena, Van Hoek, and Christopher, 2018). It requires effort from each and every department of the organization. Generally, a strategic procurement team is considered to be an important tool which is used for improving the value and contribution of the CAP market organization. It generally works like a guide for CAP market and should be updated on a regular basis so that it can easily align with its overall business strategy. The greatest need for strategic procurement can be various aspects like reduction of cost, new market development and proper management of risk (Azambuja, Ponticelli, and O’Brien, 2014). By the help of procurement management, the CAP market can ensure the fact that they are delivering value by concentrating on various strategies like consolidating spend, reduction of the total life cycle and an increase in competition. In other words, strategic procurement at CAP market can easily incorporate at reducing the base of supplies, communication and lastly having a long-term relationship with various suppliers.

            In the coming pages of the report, an idea has been provided regarding the various benefits of strategic procurement in Cap Market. The organization can have a large number of benefits like driving profitable growth and source of value. It can also add to their business value design. For this particular reason, Cap market have been re-examining their supply base so that they can easily minimize linked cost and maximize their value of goods and services for their customers or consumers. At the end of the report, a strategic source framework has been provided which can easily lead to procurement excellence and value growth.

Discussion

Critical examination of sourcing method and supplier base

            Strategic procurement can be defined as a process which can be used for creating alignment and consistency of action. It mainly aims in delivering long-term objectives and overall strategy which can be used for fulfilling its mission (Wanjiru, 2016). It generally focuses on s transformation or change in organizations mission, goals and various objectives which are known to be a measurable activity like plan budget and management of procurement function. Cap Market comes up with own policies and structure which greatly affects the whole procurement process. The policies and procedure are built in such a way that it can easily contradict with procurement objective and goals. For an organization like CAP market, decision making may take a long time during the procurement process (Deasy et al., 2014). CAP market has an excellent relationship with their various suppliers but the fact should be taken into consideration that continuous improvement may lead to breeding and reduction of cost. Strategic sourcing can be easily stated as a well-known method which can be used for cost-reduction. It is considered to be useful in Transport and freight, finance, marketing and sales, manufacturing and lastly HR retail.

            CAP market can be considered to be a charitable organization which was set up in the year of 1985. This particular market organization provides employment for disabled people of Germany (Kim, Suresh, and Kocabasoglu-Hillmer, 2015). This organization works with other five similar organizations so that it can easily cover the whole of Germany. In the beginning, this particular organization was a joint venture which was run by its various members. But later on this organization was properly constructed and at present, it has mainly five objectives. 

• Buying and Selling of various goods jointly for its member.
• Developing and selling various products which are considered to be suitable to be manufactured by various disable people.
• Proper set up and management of various co-operative operations in various member institutes.
• Providing an advice regarding business and technology
• It can be used for proper management of developed projects.

The development of CAP market mainly comprises of three parts that practice for distribution, operating or working of various trucks and technology (Shin, Collier and Wilson, 2017). There are a large number of benefits which can be gathered from supply chain like time-saving, effective management of inventory and lastly improve the forecasting of various products at CAP market. This supermarket started with providing jobs for management of inventory at the warehouse of the CAP market. A method was adopted by the CAP market known as VMI (vendor management inventory) which is used for proper inventory flow (Park et al., 2016). This particular method was mainly used for ensuring the fact that various products are always available on the shelve. This particular process requires cooperation and proper collaboration with various suppliers which provide better supply chain management.

Before the development of VMI, CAP organization was making use of tapping technology. CAP organization was making use of computers for proper inventory control for its various centers and warehouses (Araz and Ozkarahan, 2017). The inventory management at CAP market can easily gather information from various points like POS, sales in real-time and inventory at warehouse into a particular database which is centralized in nature. This particular information is shared with various suppliers so that they can have an idea when more products need to ship. The SCM process at CAP organization is not totally based on technology.  This supermarket makes use of a method known as cross-docking at its warehouse (Arney et al., 2014). This particular method helped in moving the inventory in such a way that it can move the inventory directly from the place which is arriving from the various departing trucks. Products are mainly taken from various arriving trucks and after that, it is packed in some trucks. The ultimate result of this can be lower cost for various inventory management, less time for products in transport and lastly reduction of transport cost (Edquist et al., 2015). The ultimate benefit which can be achieved is cost control which can be used for reducing the overall expenditure of this CAP organization.  By having a proper control of the money which is spending, the organization can easily have a track about the value or amount of money which goes out of the door. It will ultimately help the CAP organization to keep more cash in hand or to invest in another amount of money like capital expense or any kind of debt.

 A supply base can be easily defined as a part of the supply network which is actively or mainly used for buying an organization (Lawal, 2016). Supply base optimization generally begins with rationalization which is a strategic initiative. Supplier rationalization can be easily considered to be a continuous process which generally needs maintenance on a regular basis. The maintenance is all about replacing the good suppliers with better or best one (Loader, 2015). The main goal or task is to build a manageable, optimized supply base and lastly establishing a long-lasting relationship with various suppliers (Mark McKevitt, Flynn, and Davis, 2014). CAP market should conduct a supplier performance management (SPM) program on a regular basis at it can bring a lot of benefits. SPM program can provide advantages:

• SPM can be used for neglecting various kind of supply chain risk and disruption.
• This program can be used for the protection and improvement of the reputation of the brand.
• SPM program can be used for avoiding various types of cost and achieving saving.
• This program can be easily used for segmenting and ranking vendors
• This program can be used for establishing collaboration with various suppliers of CAP market.
• This program aims at providing full transparency between the CAP organization and its suppliers.
• It aims at improving collaboration between the CAP organization and its suppliers.
• This program increases the customer satisfaction at CAP market. 
• This program can be considered to be useful for improving quality, manufacturability and lastly reliability for various customers of CAP market.
• This program can be considered to be useful for improving the awareness regarding supplier diversity.
• This program will increase the visibility of full supply base to procurement and event management departments.

Critical discussion on Sourcing Method and Supplier Base

            Strategic sourcing is known to be a well-known supply management tool which aims at delivering cost reduction and other kinds of benefits. Strategic sourcing is the first step of the ladder. When it is combined with strategic supplier management and effective day to day activities then the final outcome can be more advantageous. Few organizations like CAP market have easily managed to become leaders in both domains that is strategic sourcing and strategic supplier management. Both the organization and its suppliers work together to develop strategies and set of values. An organization like CAP market creates supply advantage with the help of suppliers which checks the fact that how their roles and relationship can be changed as per requirement. The ultimate goal of strategic sourcing is to provide a certain number of advantages in which members can become innovative and leader in the market. Purchasing organization and its various suppliers can easily promote communication by creating different opportunities and processes. The CAP market is focused on strategic sourcing which is much focused to easily find products at a required price from different suppliers. After that CAP market is much focused to provide the strategic partnership with a large number of vendors. This will provide long-term and high volume purchase in return for the lowest possible prices. Apart from this, the CAP market organization makes use of cross docking which is a well-known logistic practice. This particular method is considered to be a centerpiece for CAP market strategy which aims to replenish the inventory in an efficient way. This aims in direct transfer of a product which is inbound and outbound truck trailers without any kind of extra storage space. It aims for unloading items from an inbound and outbound truck with no storage space in between them. The suppliers are more focused to deliver products at CAP market distribution where different products can be cross-docked and delivered to various stores. The ultimate goal of cross-docking is to reduce the inventory and transportation cost, transportation time and any kind of inefficiency.

Strategic source of the framework which is used for procurement excellence and growth of value

            Strategic sourcing can be easily defined as a dynamic delivery of both internal and external business or any IT related issues. It is mainly done so that business objectives are met for various sources and services (Krasteva and Yildirim, 2017). Strategic sourcing mainly comprises of four phases that is sourcing strategy, evaluation and selection, negotiation with the contractor and lastly sourcing management. There are five phases of the Strategic sourcing process for this CAP market like analyzing, recommendation, selection, implementation and lastly management. It is done so that organization like CAP market can improve its purchasing power so that it can have its best possible value in the market.

            Analysing: The analyzing phase of the strategic sourcing process for CAP market will help them in gaining knowledge about the external market. This particular phase will help in the establishment of external sourcing team, brief details about the data analysis of any kind of past performance (Roberta Pereira et al., 2014). Apart from this, this particular phase will help the business people of CAP market to have an idea regarding the present business needs or requirements. The only drawback of this phase is that it is time-consuming, so the sourcing agent of CAP market should begin their particular process early phase. For this phase, it is recommended that CAP market should have a sourcing professional to guide this and other kinds of associated phases. Sourcing professional at CAP market will start this phase by conducting a market analysis which helps them in having an idea regarding the external market, the performance of suppliers and lastly business needs. Various kinds of sourcing professional will help to have an idea regarding the information and recommendation which is developed by the sourcing team. It also aims in having an advantage in strategy, time and lastly various kinds of expected benefits. The gateway can be easily defined as a proper kind of scheduling method which is mainly used for ensuring the fact that all the parties under CAP market are in agreement with the project (Strategic sourcing) before it moves forward.

            Recommendation: The main focus on this step is all about the approval of sourcing strategy which is developed in the analyzing step. This step relates to the collection of resources from various business leaders of CAP market (Young, Nagpal and Adams, 2016). The Gateway review of CAP market is mainly inclusive of Corporate Supply management and their staff members. It is inclusive of leaders of CAP market which are affected by sourcing initiatives. During the review of the gateway at the CAP market, its sourcing team will get an idea regarding the current market information. Along with this, it also provides details regarding the segmentation of suppliers and recommendation by making use of strategic plan template.  Business leaders at this gateway will ensure the point that meetings can increase their concept about supplier strategies. It is inclusive of a certain number of commitment which provides an idea regarding the things which can take place.

            Selection: The main goal of this stage relates to proper negotiation and proper suppliers to easily fulfill the needs of CAP market. In this stage, sourcing team of CAP market will communicate with the sourcing strategy for its business (Loader and Norton, 2015). The proper effort is required for reducing the opportunities for supplier and to make use of contacts with CAP market so that they can gain information and reduce competition in the market. Apart from this, the team at CAP market will identify various kinds of communication strategies for suppliers for ensuring the fact that they provide the best offer. This particular support at CAP market will improve competitive tension by considering the sourcing method. Sourcing team at CAP market generally negotiates with various suppliers for fulfilling the deliverable requirement (Fernandes and Vieira, 2015). After proper negotiation with sourcing professionals, the suppliers can easily fulfill the requirement of deliverable at Gateway steering team. 

            Implementation: The main intention of this implementation stage is to provide award business to the CAP market at selected suppliers. Detail step about the completing phase is mainly delivered across the whole CAP market. Suppliers of CAP market assist in the development of an implementation plan (Farag and McDermott, 2015). The appointed team at CAP market will identify any kind of barrier and develop a proper plan for overcoming the barrier. Proper compliance with new agreements at CAP market is sustained and developed with the help of special reporting at a data warehouse.

            Managing: The ultimate goal of this step deals with the continuous performance of the supplier. Various sourcing professionals will ensure the fact that all the deliverables contracts are met on time. After that, a proper business review should be conducted with suppliers of CAP market so that the team members can have an idea regarding the financial stability of the various suppliers (Jensen, 2017). This will help in having an idea regarding new kind of appropriate offering at the various marketplace. The final output from the managing step is all about input from analyzing step in the beginning.

There are a large number of the objective of strategic sourcing like

            Business Collaboration: When an organization like CAP market aggregate their buying power than buying pooling from a different location can be accomplished by properly pooling buying from the various location (Young, 2016).

            Consistent and disciplined approach: It is mainly considered to be important in an organization which is involved in governmental procurement contacts (Vonortas et al., 2015). The biggest benefit is to ensure the fact that sourcing agents do not commit to any kind of CAP market dollars to various suppliers which are not considered not to be good for business. 

            The additional tension in the market: A key measure of this CAP organization is to perform the ability of the fact that they can easily create competition tension in the whole market (Johnson, Leenders, and McCue, 2017). In many cases, it is seen that buying organization of CAP market can easily reduce the overall cost of products and various services.

            Increasing overall saving contribution: The ultimate focus of strategic sourcing at CAP market is driving down the cost of product and services (Lynch et al., 2016). Any professional can easily create a good buyer-supplier relationship but only the best one can provide the best products and services.

Conclusion

            The above discussion relates us to the fact that this report deals with Strategic procurement at CAP market. A various organization like CAP market have acknowledged the fact that strategic procurement can easily play a vital role in having profitable growth and can also help in having driving profitable growth. Strategic procurement can become a source of value and also add business design. For this particular reason, CAP market have been examining their supply base so that they can reduce linked cost and maximize the value of goods and service for various consumers. In the above pages of the report, two important aspects have been analyzed like sourcing method and supplier based of CAP market. And another one is a strategic source framework which can lead to procurement excellence and growth of value. With the help of literature based on purchasing and supply chain, a proper framework has been provided which allow CAP market to gain advantage and benefits from centralized procurement model, reduction of supplier and volume. It aims in avoiding the disadvantage of the centralized procurement model along with the slow response to various functional units. Some of the important elements of this particular process are all about participation and support. A project manager is mainly capable of creating a collaborative environment for CAP market. With these elements, the CAP market can easily derive various kinds of cost-saving based initiatives through the whole organization.  In the above pages of the report, the seven steps of successful procurement have been discussed in details. The seven steps of strategic procurement are conduction of internal analysis, assessment of supplier market, a collection of supplier information, development of sourcing and outsourcing strategy, implementation of sourcing strategy, negotiation with suppliers and implementation of supply chain management have been discussed in details. In the above pages, four steps of strategic sourcing like sourcing strategy, evaluation of providers, negotiation with contracts and sourcing management have been discussed in details. The Cap market organization should follow a list of steps which can help them in improving their business process like sourcing materials from low-cost countries, building up a global supplier footprint, having an easy access to various innovative technologies, standardization of various products.

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