MLM Directory

‘Guidelines of BOSCH purchasing can be used as vendor rating parameter’ Do you agree with the statement? ?

MICO- Bosch is the subsidiary of one of the world’s largest private industrial company Bosch Germany. It is the largest manufacturer of diesel fuel injection equipment. The company operates in three major segments. They are automotive technology, consumer goods and building technology and industrial technology. Bosch uses Indian office as an outsourcing destination for diesel fuel injection equipment and pumps. Therefore it has to meet the international standards set for engineering products in different countries. To ensure the adherence to international standards company should have best procurement system in place. Purchasing Mico Bosch purchasing department procures the materials from world class suppliers who can supply the goods at best prices. To obtain the required quality and efficiency Bosch always looks for the long term relationship with their suppliers. Major products procured by the Bosch India are steels, castings, forgings, turned and machined parts, sintered components, fasteners, springs, bearings, assemblies, sub-assemblies, packing materials, logistic services and capital goods. Bosch worldwide is driven by a unique philosophy of BeQik. This represents Bosch Group's commitment towards Best Quality, Innovation, Customer Satisfaction and Continuous Improvement Procuring the world class product at an affordable price is a challenge. To accomplish that challenge the company has set the following guidelines. Customer Satisfaction Quality ( Zero defect) Supplier Development (training and development) Fairness and Openness International Activities Systems Network Market and Products Environmental Responsibility Continuous Improvement Associate Development As Bosch India procures large assortments it felt the need of dividing the purchasing deprtment into two divisions. They are corporate logistics and purchase ( CLP) and plant logistics and purchase(PLP). Corporate logistics and purchase division sources raw materials, standard components, trade goods and capital goods. They also ensure proper logistics contracts and customs clearance. The plant purchase department is responsible for plant specific parts, machined components, mechanical subassemblies and capital goods. Any company that wishes to become supply chain member of Bosch India should fulfill following criteria: 1. All suppliers should be QS 9000 certified manufacturers. 2. The supplier should get A rating from the company. the rating methodology is given below Audit score % Ranking Meaning 90 to 100 AFull compliance 80 to less than 90ABMainly compliant 60 to less than 80BConditionally compliant Less than 60CNot compliant Questions: a. ‘Guidelines of BOSCH purchasing can be used as vendor rating parameter’ Do you agree with the statement? Comment. b. Discuss the advantages of dividing the purchasing department.

Public Comments

1. man you are way off the subject.
2. You are asking for a solution to a case study!!! Here's my take: Ratings provided by the company is nothing but a process of vendor evaluation. And so it can very well be used for the purpose of rating a vendor. Vendor rating can be on parameters like price, on time delivery, price variance, product supply, quality control, rejections etc. So I agree with the statement. By dividing the purchasing department, there has been a clear segregation of roles. The CLP is responsible for the larger contracts, while the PLP can focus on the operational requirements. By segregating the two, Bosch is trying to make sure that the CLP does not get involved in day to day activities, so that they can focus on the more strategic purchases, instead of being bogged down with day to day operational issues.