Strategic_Procurement_Plan_T-Global.pptx

GLOBAL PROCUREMENT

1. Strategic Procurement Plan for T-Global Technology Co. Ltd Optimizing Global Supply Chain Management

2. Introduction Overview of T-Global Technology Co. Ltd - Multinational manufacturer of consumer electronics - Assembly plants in USA, Germany, and Vietnam - Components sourced from Taiwan, South Korea, China, and Mexico

3. Background and Objectives Background: - Global supply chain challenges - Need for optimized procurement strategies Objectives: - Understand global procurement processes - Evaluate different procurement strategies - Develop a strategic procurement plan - Consider risks and mitigation strategies

4. Suppliers and Locations Microchips: Taiwan Display Panels: South Korea Batteries: China Plastic Casings: Mexico Assembly Plants: USA, Germany, Vietnam

5. Challenges Tariffs and Trade Restrictions - New tariffs on electronics imported from Asia Supply Chain Disruptions - Natural disasters - Political instability Quality Control - Variability in component quality Cost Management - Rising raw material and transportation costs

6. Goals Cost Reduction: - Strategies to lower procurement and production costs Supply Chain Resilience: - Plans to manage and mitigate risks Sustainability: - Incorporating sustainable practices in procurement

7. Current Procurement Analysis Impact of Tariffs - Increased costs and import restrictions Supply Chain Disruptions - Effects of natural disasters and political issues Quality Control Issues - Inconsistent component quality from suppliers Rising Costs - Impact on profitability and pricing strategies

8. Procurement Strategy Data Component Supplier Location Current Cost (USD/unit) Tariff Impact (%) Disruption Risk (%) Quality Control Issues (%) Proposed Cost Reduction (%) New Cost (USD/unit) Microchips Taiwan 20 10 20 5 5 19.0 Display Panels South Korea 30 15 25 10 7 27.9 Batteries China 10 20 30 15 10 9.0 Plastic Casings Mexico 5 5 10 2 3 4.85

9. Microchips (Taiwan): - Current cost: $20/unit - Tariff impact: 10% - Disruption risk: 20% - Quality control issues: 5% - Proposed cost reduction: 5% - New cost: $19/unit Display Panels (South Korea): - Current cost: $30/unit - Tariff impact: 15% - Disruption risk: 25% - Quality control issues: 10% - Proposed cost reduction: 7% - New cost: $27.90/unit Interpretation of Data

10. Batteries (China): - Current cost: $10/unit - Tariff impact: 20% - Disruption risk: 30% - Quality control issues: 15% - Proposed cost reduction: 10% - New cost: $9/unit Plastic Casings (Mexico): - Current cost: $5/unit - Tariff impact: 5% - Disruption risk: 10% - Quality control issues: 2% - Proposed cost reduction: 3% - New cost: $4.85/unit Interpretation of Data

11. Strategic Procurement Plan Supplier Diversification - Identifying alternative suppliers in different regions Negotiation Strategies - Tactics to reduce costs and improve terms with suppliers Risk Management Plan - Addressing potential supply chain disruptions Sustainability Initiatives - Integrating sustainable procurement practices

12. Outcomes Actual Cost Savings: - Microchips (Taiwan): Reduced from $20/unit to $19/unit - Display Panels (South Korea): Reduced from $30/unit to $27.90/unit - Batteries (China): Reduced from $10/unit to $9/unit - Plastic Casings (Mexico): Reduced from $5/unit to $4.85/unit Improved Resilience: - Enhanced ability to manage supply chain risks through diversification and risk management strategies Sustainable Practices: - Positive environmental and social impact through integrated sustainable procurement practices

13. Supply Chain Challenges Tariffs and Trade Restrictions New Tariffs: Imposed on electronics imported from Asia. Impact: Increased costs and potential import restrictions. Supply Chain Disruptions Natural Disasters: Earthquakes, floods, and other natural events. Political Instability: Changes in government policies, unrest, and strikes in supplier countries. Impact: Interruptions in the supply of critical components. Quality Control Issues Variability: Differences in component quality from various suppliers. Impact: Potential product defects and customer dissatisfaction.

14. Supply Chain Challenges Cost Management Rising Raw Material Costs: Increasing prices of essential materials. Transportation Costs: Fluctuations in shipping and logistics expenses. Impact: Reduced profit margins and higher production costs. Logistical Challenges Coordination: Difficulty in synchronizing supply chain activities across multiple regions. Lead Times: Longer and unpredictable delivery times. Impact: Delays in production schedules and potential stockouts.

15. Supply Chain Challenges Technological Challenges Integration: Issues with integrating new technologies into the existing supply chain infrastructure. Data Management: Handling large volumes of data for supply chain optimization. Impact: Inefficiencies and delays in decision-making processes. Environmental and Sustainability Concerns Regulations: Compliance with environmental regulations and standards. Sustainable Practices: Incorporating eco-friendly practices in procurement and production. Impact: Increased operational costs and need for process adjustments.

16. Sustainability Initiatives 1. Sustainable Sourcing Supplier Criteria: Establish sustainability criteria for selecting suppliers. Local Suppliers: Prioritize local suppliers to reduce transportation emissions. Eco-friendly Materials: Source materials that have minimal environmental impact . 2. Energy Efficiency Renewable Energy: Invest in renewable energy sources for manufacturing plants. Energy-efficient Equipment: Upgrade to energy-efficient machinery and equipment. Energy Audits: Conduct regular energy audits to identify and implement energy-saving measures. 3. Waste Reduction Recycling Programs: Implement recycling programs for manufacturing waste. Zero-waste Goals: Set targets for zero waste to landfill. Waste Management Systems: Develop systems to manage and reduce waste effectively. 4. Carbon Footprint Reduction Emissions Tracking: Monitor and track carbon emissions throughout the supply chain. Offset Programs: Participate in carbon offset programs to neutralize emissions. Sustainable Transportation: Use low-emission vehicles and optimize logistics to reduce carbon footprint. 5. Water Conservation Water-efficient Processes: Implement water-efficient manufacturing processes. Recycling and Reuse: Recycle and reuse water within the manufacturing processes. Water Management Plans: Develop comprehensive water management plans to reduce water usage.

17. Sustainability Initiatives 6. Sustainable Packaging Eco-friendly Packaging Materials: Use biodegradable or recyclable packaging materials. Minimal Packaging: Design packaging to use minimal materials without compromising product safety. Packaging Innovation: Invest in innovative packaging solutions that reduce environmental impact. 7. Employee Engagement Training Programs: Conduct training programs to educate employees on sustainability practices. Incentives: Provide incentives for employees to participate in sustainability initiatives. Sustainability Culture: Foster a culture of sustainability within the organization. 8 . Community Engagement Local Projects: Support local environmental projects and initiatives. Education and Outreach: Engage in community education and outreach programs to promote sustainability. Partnerships: Partner with local organizations to enhance sustainability efforts. 9 . Product Lifecycle Management Design for Sustainability: Design products with their entire lifecycle in mind to minimize environmental impact. End-of-life Programs: Develop programs for the recycling and safe disposal of products at the end of their lifecycle. Lifecycle Assessment: Conduct lifecycle assessments to identify and mitigate environmental impacts at each stage.

18. Thank You