Mars Inc – E-Procurement and Its ChallengesBackground:Mars Inc. (Mars) began its journey as a Candy factory in 1911, growing its business from $300 Million in 1970 to $30 Billion in 2012. Currently the privately owned business operates in numerous industries including pet care, confectionary and other foods. The company procures materials worth $4 billion annually from all around the globe and intents to achieve cost savings by adopting online procurement method. Mars is governed and operated based on five core principles of Quality, Responsibility, Mutuality, Efficiency and Freedom. The company advocates its triumph and success on maintaining cordial relationship with strategic suppliers. Mars principle of mutuality is embedded in every decision making whereby ideology of maximizing benefits for the company has been replaced with maximizing shared benefits. Â Therefore, the company wants to achieve cost saving whilst procuring raw materials but not at the expense of strained relations with suppliers. Thereby adoption of online procurement system has been evaluated as a collective way forward to cost savings in this case analysis.
E-Procurement and its challenges:The shift from one to one dealing with suppliers to E-Procurement improves efficiency of the purchasing process. This will not only reduce cost but also improve time efficiency and access to large number of supplier. Furthermore, lot size adjustments will also be passed on to the suppliers as they will integrate their resources and cater to the RFQ’s and try to achieve economies of scale. However, one important aspect critical to the success of this method is training suppliers and maintaining strong ties during this change in order to reiterate the trust and value Mars places on these suppliers. Moreover, this method will lead to high initial outlay and subsequent training costs. One more important factor that Mars needs to consider is to maintain transparency and ensure whether the supplier that has under bided its competition would be able to fulfill or meet its offer.
In order to ensure the right solution, we have made sure that a customer can ensure all the steps in the process are followed to ensure high quality manufacturing. All suppliers we contacted provided the right steps to ensure all the resources are included to meet the needs of our customers.
We have also provided the necessary instructions to ensure that the correct material is chosen for the item. Each time we purchase a new item, our suppliers will assist us in setting and ensuring that it is properly selected for the job. These are all things we did to ensure the right information was communicated to the correct supplier.
Each change in product selection brings with it the potential savings on quality of our products. We do ask for the right information in order to ensure that we meet our customers’ needs when their needs are met and when required. We hope that you will understand the importance factor of product selection by using Mars on this occasion.
As an example, we are considering using a different product to provide the optimal response from a customer, to achieve a higher quality, to give a customer a better outcome in buying something, and to offer a better value to everyone in the household.
Finally, we are planning to introduce a new method for each of our suppliers that will use the space to improve its quality and fit into the broader distribution network. Each time a new item comes in, we may receive a few small notices and then reorder as needed to have the right components available. Since it could be any item from our inventory that is not yet available but needs to be shipped to our customers in some way, this can be the perfect opportunity to provide the same quality that we have been doing for quite some time, with the same quality and quality of the most of the others.
We will implement other features of the new model over time. We will make sure that our customers know that we are aware of the new product design and
In order to ensure the right solution, we have made sure that a customer can ensure all the steps in the process are followed to ensure high quality manufacturing. All suppliers we contacted provided the right steps to ensure all the resources are included to meet the needs of our customers.
We have also provided the necessary instructions to ensure that the correct material is chosen for the item. Each time we purchase a new item, our suppliers will assist us in setting and ensuring that it is properly selected for the job. These are all things we did to ensure the right information was communicated to the correct supplier.
Each change in product selection brings with it the potential savings on quality of our products. We do ask for the right information in order to ensure that we meet our customers’ needs when their needs are met and when required. We hope that you will understand the importance factor of product selection by using Mars on this occasion.
As an example, we are considering using a different product to provide the optimal response from a customer, to achieve a higher quality, to give a customer a better outcome in buying something, and to offer a better value to everyone in the household.
Finally, we are planning to introduce a new method for each of our suppliers that will use the space to improve its quality and fit into the broader distribution network. Each time a new item comes in, we may receive a few small notices and then reorder as needed to have the right components available. Since it could be any item from our inventory that is not yet available but needs to be shipped to our customers in some way, this can be the perfect opportunity to provide the same quality that we have been doing for quite some time, with the same quality and quality of the most of the others.
We will implement other features of the new model over time. We will make sure that our customers know that we are aware of the new product design and