A case study analysis of JDPi Automotive manufacturer

A CASE STUDY ANALYSIS OF JDPI AUTOMOTIVE MANUFACTURER

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Question one

A tender in the simplest term is a form of a scheme of transaction used by cooperation,

government parastatals, and other firms. In the essence of finding contracts or supplies for a

specified procurement of projects or other pending issues that require contractors to fix

(Chernykh, 2022 pp. 73-110). In the majority of cooperations, the most common mode used

procedures is Request for Tender(RTF) to invite offers of solving a particular issue or project or

procurement of highly specified supplies or contractors of a given firm in a specified

organization

The characteristics of the competitive tenders are:

 Submission of bids by interested parties and given supplies by a specified deadline. Bids

are inclusive of all relevant fine blueprint details about the service they are to provide.

 Evaluation of all bids by the clients on the given predetermined criteria evaluation

procedure. The process of tendering usually starts with the client's invitation to tender or

request for tenders(RTF)

 Tenders are usually advertised by a majority of media houses to create interest for the

projects offered in the bids.

Benefits of using the competitive tendering approach

Bids are critiqued by specified evaluation criteria. In this the specifications of the

systems are:

1. Significant improvements in general efficiency

2. High response time rate to speed up operations

3. The ability of the system to integrate with other information technology systems
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4. The amount of money to be spent will be minimal and will have been saved to a varying

degree. This is brought about by the fact that JDPi, as the client can choose the

specification of the system from a variety of suppliers who are willing to sell their

tenders at an affordable price that will help JDP, to save on money that will otherwise be

comprisable and reasonable to all the parties involved.

5. The competitive tendering approach encourages the spirit of competition. This approach

helps in promoting a hostile competitive market situation that will be helpful for the

automotive industry. This is since JDPi will get a chance to bid on every system made

available depending on the quality of specifications indicated by the cooperation. This

will not only help the automotive firm but will also offer the bidders a chance to reduce

inefficiencies brought by their systems and reduce operations costs that will otherwise

cause the failure of the system in the highly competitive marketplace.

6. It is one of the easiest ways to get the desired system. Since the system will be acquired

on the set of predetermined objectives of the system. For this reason, it is easier to use

the competitive tendering approach to the cooperation needs as the bar will have been set

far above the normal average (Cartwright, 2022 pp.1-25).

Advantages of Online Auction

 More bidders. There are large numbers of suppliers willing to stay online for them to

remain relevant in the competitive marketplace to maximize on the profits

 Large market area. Online auctions reach supplies from all over the globe. If JDP is to

get the right system auction will be the best way forward in this case as all over the

world there are wider large markets of suppliers willing to supply the required system at

an affordable price.
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 Ease of Convenience JDP as a buyer can look for systems of varied specifications

because every system is documented in the online catalog auctioneering websites

 there is varied exposure in the marketplace.JDPi,as a potential buyer, can find systems

of interest because the online workstation is easier to be used and more exposed to

potential suppliers than any other remote contact list in the world.

 Prolonged bidding period. Electronic bidding can be prolonged as long as the problem

to be solved exist. This implies that more bidders can come up as time progresses as the

automotive company keeps looking for the right system with the predetermined

specifications.

Common problems faced by procurement and supply chain managers

Every day, supply chain executives confront problems that virtually all demand immediate

attention and action. The degree and intricacy of these issues might vary. These concerns have

become more prominent as the need for robust and trustworthy supply networks has grown. After

all, distribution channels are at the heart of effective company operations, and problems will

inevitably influence a company's bottom line (Cartwright, 2022 pp.1-25). Effective inventory

management is critical because it may minimize manufacturing costs, manpower, and loss. It

may also help with managing inventory, customer happiness, and cash flow analysis.

Supplier management issue

Along with controlling consumer demands, suppliers must also be managed. You need strong

relationships with your providers to successfully manage your distribution network. In a perfect

world, you'd use Supplier Performance to continuously connect with vendors (Chernykh, 2022

pp. 73-110). You’ll need to figure out how many suppliers you'll need, how to handle shortfalls,
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as well as how to take orders. Each step necessitates careful consideration and a particular

technique that matches your firm's corporate budget proposal. You're also responsible of finding

providers that can deliver consistent and accurate bookkeeping while staying inside your budget.

Quality of product issues

Concerns concerning one of the challenges is the efficacy and sustainability of things created in

other countries of international logistics. This is especially true when modules must fulfill

regulatory requirements. Preserving your professional image relies heavily on quality. It ensures

that the items you receive meet your needs and are appropriate for their original purpose. You

also should maintain ethical standards and contribute to the reduction of your ecological

consequences (Chernykh, 2022 pp. 73-110). To put it another way, you're in place to assure that

suppliers and their products comply with national regulations. In today's contemporary global

supply chain, you'll need the gadget to assist you to do this properly. For example, 3rd

party evaluation and consulting packages are designed to collect and ensure the seamless flow of

information concerning vendor health and the environment.

Customer satisfaction issues

Customer anticipation handling is one of the procurement issues. Distribution Network Managers

are commercial entities. They assist with indirect procurement, building and manufacturing

requirements, and external consumer wants. As a result, Logistics Managers are in demand and

to guarantee that requests are satisfied on time, every time, effective mechanisms must be

implemented (Chernykh, 2022 pp. 73-110). When profitability is their primary focus, logistics

providers may manage to fulfill consumers' needs. For example, you could collect reliable

statistics and follow the completion of hiring, planning, sourcing, and transportation.
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Limited access to information

In today's logistics chain, having access to your transmission system data is one of the most

important criterion. Authorization can help you manage your network infrastructure more

effectively. You won't be able to produce educated distribution network adjustments or reduce

risk without it (Cartwright, 2022 pp.1-25). Having a framework in place that captures these

indications helps lessen the chance of your company's purchasing and surveillance being

compromised. It will also assist you in risk reduction.

Risk management

In any purchase, risk minimization is tough. While risk is a broad notion, procurement managers

must be aware of just a few logistics problems. Among them are:

Companies that are overly reliant on one provider for the majority of their expenditures are

susceptible if that provider fails to satisfy demand. To maintain company continuity, broaden

your distribution network as much as feasible.

Neglect to prepare for big force occurrences: These shortcomings were highly obvious when

COVID-19 disrupted global goods & service mobility.

Managing rising costs: This knowledge is vital to negotiating contracts with suppliers.

Considering alternatives in marketing channels must be accommodated: Picking the right things

to the location at the correct time is critical to any company's success (Watermeyer, 2022. pp.

371-395). Stock management: Stock is expensive to buy, retain, and, in the worst-case

scenario burn off. Good planning is a key to minimizing and limiting risk. Taking the approach to

find, analyze, and develop countermeasures is an important stepping stone in lowering supply

chain issues
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Change in the complexity of supply chain management.

As inventory control becomes more interconnected and advanced, the task of a procurement

overseer becomes more complicated day after day. A well-managed and effective delivery system

may give a considerable stronger position to a corporation. When procurement teams consider all

of the difficulties and risks associated with their distribution network, they can ensure that the

company has the greatest products at the cheapest rates, you can start reaping the benefits and

unlocking development (Watermeyer, 2022. pp. 371-395). Many significant hazards may be

mitigated with proper information and the right expenditure management techniques. When a

firm's procurement is running efficiently, you could become the absolute legend.

Solutions to overcoming supply chain problems

1. Meet all customer demands and expectations. When customers buy a product through

your site, they should have realistic boundaries about pricing, accessibility, and delivery

timelines. Regrettably, because of continued supply chain issues, merchants are at

greater risk of failing to meet those promises as vendors struggle to meet market

requirements. Supply chain diversity is a method that online businesses may increase

their supplier chain If one source fails to meet your needs, choosing many providers

reduces the risk of returning costs and lengthy delivery times (Chernykh, 2022 pp. 73-

110). This means that, even when faced with uncertainties, you can resolve to satisfying

the customers and exceeding customer requirements. Similarly, supply chain diversity

helps ecommerce business owners save money by allowing them to select a vendor that

fits their existing budget. This is extremely crucial during the epidemic, because rising
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demand and cost pressures have driven up production and transportation prices

throughout the globe.

2. Always be equipped with enough stock in the verge of increase in demand

Notwithstanding supply chain issues affecting production and shipping operations in many

countries, demand continues to rise, leaving firms with insufficient inventory (Watermeyer, 2022.

pp. 371-395).

3 Solving unprecedented issues

. When digital commerce firms face unique challenges such as unanticipated market demand or

restricted vendors, they should be ready to cope with the problems using their set of methods. If

you've not already done so, now is the time to create a fallback option for your digital retail

business (Chernykh,2022 pp. 73-110).

4 Avoid exceeding the sales value or over compensating

To determine the minimal quantities of stock you should hold at all times, try setting a cast

ability quantity of inventories for each item, particularly near record ones. This one will help to

recognize refill requirements before totally depleting your stockpile, as well as provide you some

breathing room in the case that a commodity sells out immediately (Watermeyer, 2022. pp. 371-

395). If you're making sales through outlets apart from your official site, make sure your sales

volumes are updated.

If a commodity is oversold, make sure to contact with clients as quickly as the problem is

discovered—do not wait until the season to inform a client that their purchase will not be

delivered. Explain how international logistics difficulties are hurting your firm and how much

you appreciate their ongoing support, especially in moments of emergency (Chernykh, 2022 pp.
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73-110). Think about giving rewards like a price discount to clients who return for a third

attempt to ease the pain of an oversell.

5 Expect delays in production.

Companies will have to become feisty to escape the weight of production and vendor delays,

which are hurting most sectors. Supply chain heterogeneity and stock management, as previously

discussed, are good ways to alleviate challenges caused by distribution network delays. These

procedures, unfortunately, are not infallible.

Question 2

Terms that govern a contract

In simplest definition of terms and condition, these are simply provisions involved in taking part

in pacts or agreements giving rise to obligation. Conditions and terms of a contract are

determined by both parties in an agreement. For a contract to be legally enforceable and valid,

there must be elements of offer and provisions and parties must mutually agree to the terms and

conditions of the agreement (Cartwright, 2022 pp.1-25). According to the rules of making pacts,

terms are obligations involved in making a contract and if ever breach it will be requiring a court

process to pay the damages caused by the breach.

In reference to the case scenario on the issue of whose terms the contract is governed, it is

preferable to conclude that it is governed by both party’s terms and conditions. This is because

JDPi has given a set of conditions to be used and Capergemini UK PLC has specified and

modified which rules will apply and both parties are seen to agree on the revision of the terms

and conditions to be used in the agreement and this can be implied because we can see that there

afterwards JDPi accepts the offer to bid and gives a letter and permission to bid to Capergemini
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and the latter agrees to upgrade the system. This means that both parties are in a legally binding

contract and the laws of contracts require both parties to participate in making the tenents of the

contracts and must mutually agree before signing and executions of promises in the provisions of

the contract.

Question 3

Implication of the terms and conditions on the obligations of JDPi

According to the laws of making contracts, obligations are the official duties of both participants

of a contract to fulfil the tenents specified in the contract. This means that JDPi is required to

comply with the rules of the contract information. In this said, participants to a contract are

supposed to conduct themselves in a professional and honest manner.

This means that the laws of contracts are enforceable and requires both participants to keep their

very end of the that contract. According to the laws of contracts anyone who is unable to fulfil

the tenants of an agreement are not fit to enter into any contract. Contracts are not only designed

to the basics but also are required to examine the how and when the obligations are to be

executed. When on party fails to keep the of the contract, it is considered a breach of contract

and the breached party has a right to seek legal counsel for compensation as it should cover all

the damages and expenses incurred at the expense of the other party.

Question 4

Advice to CaperGemini UK PLC

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In this case scenario, Capergemini UK PLC, has a right to be refunded the £ 10000 promised to

be paid. This is because according to the terms and conditions set, clause 4 [customer agrees to

comply with all the supplier’s reasonable instructions concerning usage and modification] the

supplier, Capergemni had informed the customer of the modifications to be made to the system

and Capergemini argues that this will be a variation of the scope of upgrading the system and

that it would take time if not more money is not set aside for this issue. In due process JDPi

agrees to pay the funds later only later to refuse to pay back the funds. In contracts laws this is

considered a breach of contract and the supplier has a legal right to claim for damages and

inconveniences brought by this breach.

According to the 6th clause of the revised terms and conditions which states that the costs of the

extend of the work are only estimates and charges will be levied according to the Terms of the

contracts. From the 6th clause, it is only reasonable and legally binding that JDPi refunds the

amount since the 6th clause states that the total amount are estimates and it is only rational that

the amount should be levied on the customer and recipient of the service and only at the expense

of JDPi and not Capergemni UK PLC.

Question 5

Different sourcing approaches that could be used by JDPi

Some of the best sourcing techniques that can be used by JDPi are:

Outsourcing. Using external vendors to offer the system specifications and services that have

been previously delivered inside.

Insourcing. Abdicating a task inside the organization to minimize the cost of spending more on

external manpower.
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Near sourcing. To save energy / cost, a company locates certain processes near where its final

goods are marketed.

Integrating vertically. Merging enterprises in the same sector that are at various production stages

and/or marketing. Consolidation occurs when a firm buys its input provider; forward

incorporation happens when a firm acquires businesses in its distribution process.

Legal aspects in supply chain relations

The influence of contractual contracts on the interactions between various stakeholders in a

supply chain, such as:

Principal agency relationship

A primary agent relationship occurs when one business hires another to lawfully act on its behalf.

The agency serves as a representation of the concept for a primary cause, there should be no

possible conflicting interests in performing the activity (Watermeyer, 2022. pp. 371-395). The

word "agencies" alludes to the collaboration between the principals and agents, and agency law

establishes guidelines for such a connection.

Non-disclosure agreements

A confidentiality contract is a legally binding instrument that compels one or more participants to

keep protected or sensitive material secret. Third parties are used if sensitive company

knowledge or a proprietary information is not intended to be made public (Watermeyer, 2022.

pp. 371-395).

Negligence
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A firm can be held accountable for significant harm occurrences in its supply chain under the

legal principle of business and supply chain responsibility if it did nothing to prevent the harm in

breach of certain obligation to do so.

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