Abhishek Sharma 05

A) If you were the head of procurement at a dairy processor, but with limited
SMP processing this season, but strategically would like to be in SMP
processing next year, how would you devise your procurement plan for next
year?
As procurement manager my plan will be to procure milk from farmers because
the company want to be in SMP processing as the company might have forecasted
absence of ban SMP is fetching very high prices in international market so
producing SMP will be very beneficial to the company
Also, if the ban is there, they can sell SMP to ice-cream companies or other milk
processing companies.
Procurement plan - Firstly, What I will do I will gather information from the
stakeholders regarding the demand and supply of milk
Then depending upon the requirement of production team, I will procure right
quantity at right price.
B) If you were the procurement manager for an ice-cream manufacturer,
what implications do you think will presence or absence of ban have on the
quantity of product available in the open market? How would you plan a
proactive procurement plan?
As ice-cream is made up of skim milk so presence or absence of ban have also
impact on ice-cream production
 If Ban on exports is there then more quantity of skim milk is available in
the market and the price of skim milk will also be reasonable. So, more
quantity of product available in the open market and easy for a procurement
manager to get skim milk in the market at a good price
 But if the ban is not there then most of the skim milk will go for exports
because of higher prices in international market, that lead to a shortfall of
skim milk in Indian market leading to increase in price of skim milk
creating a problem for a procurement manager to procure the right quantity
at the right price.
So as a procurement manager I have to be proactive regarding the situations and
forecasting what is going to happen and all.
As a procurement manager, my role is to provide the amount of material sent by
the company for this year to the production department at a fixed price
 So, if I have forecasted the situation of the ban then I will convince my
leader for a reduction in quantity because of ban scenario or increase the
 price for procurement I have to make good relationships with dealers and
convincing them in such a way that if the ban will be imposed, I will always
procure your skim milk powder as a regular customer at a fixed price.
 Reduce Minimum Order Requirements
 Improve the Reliability of the Supply Chain
 Increase Material Ordering Flexibility
 Make More Use of Local Warehousing and Local Production