This website uses cookies to ensure you have the best experience. Learn more

Supply Chain Management Essay

3586 words - 15 pages

MEMORANDUM
To: MANAGEMENT OF KPMD
From: HEAD OF CLAIMS DEPARTMENT- KPMD
Title: CAUSES OF SUPPLIER CLAIMS AND A SEQUENTIAL FRAMEWORK AND PROCEDURES FOR CLAIMS PROCESS
Date: 11 APRIL 2015

1.0 OBJECTIVE. The objective of this memo is to explain the causes of supplier claims and also develop a sequential framework and procedures for claims. It will however cover the following areas.
a. Variations.
b. Suspension by supplier.
c. Delay caused by purchaser or his representative.
d. Establish a claim system of identifying and processing claims (flow chart).
e. Assessing and evaluating the validity of a claim.
f. The role of expert witness.
g. Identifying the procedures for ...view middle of the document...

This can be bring about increase in prices of material and time delays as necessary.
d. Price Fluctuation: Price fluctuation as a result of foreign currency exchange rates or economic conditions affecting the price of materials may arise variation.
In the light of the above causes of variation, a supplier claim may arise when the employer fails to honor the necessary contract variations and the contractor pursues for claims.
1.2. SUSPENSION BY SUPPLIER.
A supplier may suspend his services to an employer by virtue of the following:
a. Inability to Fulfill the Terms of the Contract. When the supplier finds it practically impossible to fulfill the terms of the contract either due to price fluctuation that were not considered in the original contract.
b. Fraud, Mistake or Misrepresentation. Fraud, mistake or misrepresentation on the part of the employer may force the supplier to suspend the contract.
c. Breach of Contract. The breach may be the inability or refusal of the employer to pay the supplier promptly or pay the agreed amount. When there is, breach of the terms of the contract by the employer may also give opportunity to the supplier to suspend his part of the contract.
d. Prior Agreement. When it is indicated in the initial contract that any party could suspend the contract.
1.3 DELAY CAUSED BY PURCHASER OR HIS REPRESENTATIVES.
A claim from the contractor or supplier may arise when there is delay caused by the purchaser or his representatives. These delays can arise based on the following conditions.
a. Change in Delivery Destination. This can occur when the buyer after agreeing on point A as the delivery destination later changes the delivery point to point C.
b. Delayed Payment. When the buyer delayed in paying for goods supplied, this can affect subsequent supply of future goods.
c. Basis of Contract. When the buyer is constantly making changes to the contract. This may affect the time of executing the terms of the contract.

CLAIMS PROCESS FOR HONOURING OR DENYING CLAIMS FROM A CONTRACTOR OR SUPPLIER
CUSTOMER SERVICE EXECUTIVE CHECKS AND RECORDS THE DOCUMENTS TO SEE WHETHER THERE WAS A CONTRACT
CUSTOMER SERVICE EXECUTIVE CHECKS AND RECORDS THE DOCUMENTS TO SEE WHETHER THERE WAS A CONTRACT
CONTRACTOR SUBMITS CLAIM FOR
CONTRACTOR SUBMITS CLAIM FOR


DOCUMENTS FORWARDED TO THE CLAIMS DEPARTMENT FOR ASSESSMENT AND EVALUATION
DOCUMENTS FORWARDED TO THE CLAIMS DEPARTMENT FOR ASSESSMENT AND EVALUATION

CLAIMS DENIED

CLAIMS DENIED

NO YES

CLAIMS DEPARTMENT VERIFIES AND EVALUTES THE CLAIM TO DETERMINE WHETHER CLAIM IS VALID
CLAIMS DEPARTMENT VERIFIES AND EVALUTES THE CLAIM TO DETERMINE WHETHER CLAIM IS VALID

DETERMINE WHETHER CLAIMS AMOUNT IS WITHIN SETTLEMENT
DETERMINE WHETHER CLAIMS AMOUNT IS WITHIN SETTLEMENT

COMPANY ADVISED
COMPANY ADVISED
NO

YES
GENERAL MANAGER’S APPROVAL
GENERAL MANAGER’S APPROVAL
YES

CLAIMS HONORED
...

Other assignments on Supply Chain Management

Global Supply Chain Management Essay

1595 words - 7 pages SPD4198 Global Supply Chain Management Lecture 7: Strategic Alliance and Outsourcing SPEED, HK Polytechnic University Lesson Seven Strategic Alliance and Outsourcing Barilla SpA Part A Strategic Partnership 2 Barilla Spa Part A Barilla SpA is the world’s largest pasta manufacturer The company sells to a wide range of Italian retailers, primarily through third party distributors During the late 1980s, Barilla suffered increasing

Operations And Supply Chain Management Essay

4042 words - 17 pages Chapter 01 Operations and Supply Chain Management Learning Objectives for Chapter 1 1. Understand why it is important to study operations and supply chain management. 2. Define efficient and effective operations. 3. Categorize operations and supply chain processes. 4. Contrast differences between services and goods producing processes. 5. Identify operations and supply chain management career opportunities. 6

Supply Chain Management Term Paper

4874 words - 20 pages Supply Chain Management Final Paper Name: Student ID: Instructor: [Abstract] With the updates of music carriers, the market of headsets expanded quickly. Using the in-ear headsets as a sample product, this paper works on the requirements, souring, logistics, sustainability and costs of the product, and finally works out a supply chain for this product. [Keywords] Supply chain management, headsets Overview Product

Dss In Supply Chain Management And Design

2843 words - 12 pages Topic: Decision Support Systems for Supply Chain Management and Design A. Summary: Supply chain management (SCM) has evolved to become an integral part of the operations management. SCM can have tremendous impact on organizational performance in terms of cost, quality, flexibility an responsiveness in the global market. Companies are investing in data driven decision support application frameworks to help then response to the changing

Supply Chain Management Of Pizza Hut

455 words - 2 pages has established its strategy to be “We want to satisfy our customer by offering them the best” and its famous slogan C.H.A.M.P.S “Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed”. And to meet customers’ needs fulfillment and highly quality requirements. The professionalism in applying the Supply Chain Management. The serve of different products (Sauteed Pastas, Beverages, Appetizers, Soups and Salads, Pizzas, Desserts

Louis Vuitton Supply Chain Management

819 words - 4 pages 20 years. However, the company faces a lot of challenges with respect to optimizing its supply chain so as to ensure mitigation of losses on account of lost sales & stock outs. We have identified the following challenges: The time for the raw materials to get from the supplier to the facilities is very long. However, because LV stands for high quality of the goods, this is a factor the company does not wish to compromise on The time it

Supply Chain

909 words - 4 pages In today’s business, supply chain is greatly recognized as one of the most important thing in order to effectively satisfy customers’ needs. Supply chain management is managing the flow of information and materials from the first supplier to the end customer (Fawcett et al, 2007). But Akkermans (1999) said that in reality is that companies do not engage in such extensive supply chain integration. Supply chain management is important to be

Supply Chain

1621 words - 7 pages SUPPLY CHAIN MANAGEMENT Objective • Maximise the overall value generated – is the difference between what the final product is worth to the customer and the effort the supply chains expends in filling the request of the customer • Supply chain profitability is the difference between the revenue generated from the customer and the overall cost across the supply chain • It is the total profit to be shared across all supply chain stages • Supply

Supply Chain

3135 words - 13 pages JCT2 - Supply Chain Management This course supports the assessment for JCT2. The course covers 10 competencies and represents 3 competency units. Introduction Overview In this course, you will be challenged with learning about the integration of activities that comprise a supply chain, from manufacturing goods through retailer sales. Understanding and proactive management of a supply chain is a key skill set for today's business executive

Supply Chain - 2698 words

2698 words - 11 pages customer need properly every supply chain manager should have deep knowledge about supply chain distribution network. Supply chain manager should know the strength and weakness of all distribution networks to achieve strategic and increase supply chain profit. The report entitled “Comparative Performance analysis of Delivery Network Designs” originated from the partial fulfillment of the supply chain management course. The main purpose of the

Supply Chain - 1630 words

1630 words - 7 pages is being demanded with a very low lead time. This approach has allowed everyone involved in the supply chain process, from supplier to distribution channel to retailer to communicate and plan effectively by allowing the sharing of information, something that was made evidently clear and necessary by the beer game application. This turned out to have a massive advantage as “By incorporating best practices such as management by exception, hierarchical forecast management and algorithm automation, we can precisely forecast and leverage the demand signal to better sync with our supplier,”

Similar Documents

Green Supply Chain Management Essay

4001 words - 17 pages Green Supply Chain Management : Logistics and Distribution Prabhakar Ravishankar White Paper Important Confidentiality Notice This document is disclosed only to the recipient to whom this document is addressed to and is pursuant to a relationship of confidentiality under which the recipient has obligations to confidentiality. This document constitutes confidential information and contains proprietary information belonging to MphasiS

Supply Chain Management Essay

3093 words - 13 pages SIBM,Bengaluru | Supply Chain Management | Assignment :Set 1 | | Karthik Periyasamy P 14020841020 Question: 1 You are the manager of Strategic Sourcing at Toyota Motor Corp and have just been called by the VP of global sourcing to whom you report. There has been a problem with the least 8 vehicles exhibiting sticking accelerator pedals and your boss is upset. Strong Evidence points to a problem with CTS, an electronic supplier

Supply Chain Management Essay

417 words - 2 pages Introduction The supply chain management (SCM) is a set of management functions that are applied for the purpose of integrating the chain members (suppliers, manufacturers, distributors, retailers and end users). This in turn will have its effect on reducing system costs and increasing customer service quality level and produces effective use of the supplier base in order to facilitate supplier relationships and to develop strategic

Supply Chain Management Checkers Essay

3649 words - 15 pages Checkers Management 212- Essay 1 Word count: 2887 Table of Contents 1. Introduction: 3 2. Checkers Supply Chain network: 3 3. Typology of Checkers: 7 4. Comparison of the Checkers to a smaller retailer 10 5. Conclusion: 12 LIST OF REFERENCES: 13 PLAGIARISM DECLARATION 14 1. Introduction: This essay will be focusing of the supply network of checkers supermarket that is operated by the Shoprite holding Ltd is