A Case Study Analysis of JDPi Automotive Manufacturer

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JDPi Automotive Manufacturer JDPi is an automotive manufacturer and it has been operating a particular IT system for the past 5 years for some of its administration and payment arrangements. More recently though, it has been hit by an increasing frequency of system breakdowns and consequent periods of down-time. This has led to increasing loss of data and de-motivation of operating staff. JDPi has decided to replace the existing system with the latest version. A business case was produced and approved at the appropriate levels of management. The supplier who had sold JDPi the existing system (Capgemini UK PLC) was asked to provide a feasibility study to assess how the system could be upgraded with a view to several objectives being satisfied, namely:  • Significant (and measurable) improvements in its general efficiency/effectiveness       •      Response times being speeded up considerably      •     Integration with other IT systems operating within the company to allow for sharing of information internally and externally with several suppliers and customers. The head of procurement, Ben Clegg, has formally stated that a competitive tendering exercise should be done to create a competition for the new software in accordance with JDPi’s procurement policy. A dispute between the head of human resources and Ben has arisen as the head of human resources was unable to understand why JDPi cannot negotiate a deal with Capgemini UK PLC and why there is a need to delay things so that other quotes can be received.

Ben replied that ‘It is our normal policy for purchases costing in excess of $5,000, which this will be on a yearly basis, to run a competition between suppliers. This ensures we have a proper, fair competition in accordance with our procedures. I will need your help in developing a plan for sourcing this service from interested suppliers as we will need to create appropriate selection criteria that prequalifies interested suppliers. We also need to create award criteria as we should consider other factors in addition to the price for licensing the software. We should then operate a competitive tendering process in our normal way and ensure compliance with any necessary technical standards such as data protection.The stakeholders of JDPi have indicated that they will support the new tendering exercise as they have heard about an e-auction (reverse auction) system which is used to obtain bids on line and believe that this could save valuable time.

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Case study analysis of automotive manufacturing industry

Table of Contents

  TOC \o "1-3" \h \z \u 1.0 Introduction . PAGEREF _Toc40229155 \h 4 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100350035000000

2.0 Main body . PAGEREF _Toc40229156 \h 4 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100350036000000

2.1 Selection of supplier and safety . PAGEREF _Toc40229157 \h 5 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100350037000000

2.2 Risk management . PAGEREF _Toc40229158 \h 5 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100350038000000

2.3 Quality assurance . PAGEREF _Toc40229159 \h 5 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100350039000000

2.4 Contracts and agreements . PAGEREF _Toc40229160 \h 5 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360030000000

2.5 Cost and efficiency . PAGEREF _Toc40229161 \h 5 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360031000000

3.0 Benefits of JDPi for competitive tendering approach . PAGEREF _Toc40229162 \h 6 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360032000000

3.1 Benefits . PAGEREF _Toc40229163 \h 6 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360033000000

3.2 Challenges . PAGEREF _Toc40229164 \h 6 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360034000000

3.3 Strategies to minimize challenges . PAGEREF _Toc40229165 \h 7 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360035000000

4.0 Terms and conditions that govern the contract PAGEREF _Toc40229166 \h 7 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360036000000

5.0 Legal rights and obligations of JDP i PAGEREF _Toc40229167 \h 8 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360037000000

6.0 Advise for Capgemini UK PLC .. PAGEREF _Toc40229168 \h 9 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360038000000

7.0 Different possible sources to be approached . PAGEREF _Toc40229169 \h 10 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100360039000000

8.0 Conclusion . PAGEREF _Toc40229170 \h 11 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200320039003100370030000000

9.0 References

  TOC \h \z \c "Figure" Figure 1:  Procurement Stages . PAGEREF _Toc40230718 \h 4 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200330030003700310038000000

Figure 2: Contracting Issues . PAGEREF _Toc40230719 \h 9 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200330030003700310039000000

Figure 3:  Supply chain conceptual framework . PAGEREF _Toc40230720 \h 10 08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000D0000005F0054006F006300340030003200330030003700320030000000

1.0 Introduction of automotive manufacturing industry

The report is based on the supply chain management of the JDPi automotive manufacturer and there is complete discussion about the challenges and to control the risk in the market. There are strategies to deal with the challenges that could be used to minimize the risk of the challenges. It is about the procurement laws and regulation that are governed by the contract and how these could term and conditions to be implemented in the contract. In the contemporary business world, it is necessary to implement the strategies in the business to save the cost of purchasing and implement the strategies that could be agreed upon the terms and conditions of the supply chain management. There are different kinds of procurement and supply chain management that is implemented on the project to gain the competitive advantage in the market.

There are trending challenges that could be faced by procurement supply chain management that could be used in the responsibility and the liabilities of the company that could make development and overcome the challenges faced by the procurement supply chain management. There are legal rights and duties of JDPi that are enforced in the company. In manufacturing industry there must be proper implication of safety measures.

2.0 Main body

Figure   SEQ Figure \* ARABIC 1 :  Procurement Stages

In the potential working environment, there must be proper enforcement of the rules and regulations that are arranged in the JDPi manufacturing industry. Procurement supply chain management has to face different kinds of the challenges in the manufacturing industry. In context of JDPi automotive manufacturing industry, there are some challenges that could be faced by the procurement supply chain management explained as follow:

2.1 Selection of supplier and safety of automotive manufacturing industry

There is requirement of delivering the cost of the product in the quality to determine the cost and scope of the product. There are different approaches that work with the best practice in the selection of the negotiation of the benefits in the procedure of the security and quality of the manufacturing of the vehicle. Quality product could be helpful to gain the sustainability of the business in the market. The manufacturing industry is based on the quality of raw material and machinery that is purchased by the company. Therefore there must be proper selection of the suppliers as performance of the company is based on the quality of the machinery and raw material used in the manufacturing industry. All the safety measures and regulations must be followed that are difficult task to implement and select the supplier for the raw material.

2.2 Risk management of automotive manufacturing industry

When the company is working in the competitive market, there must be proper allocation and settlement of the risk that could be faced y the procurement supply chain management. In the case of JDPi there is need to mitigate the risk as there would be stability in the prices of the vehicle but quality is required from the product. So company could not take the risk in the settlement of the quality. The Government procurement supply chain management must to have evaluated the danger of using a Single Source provider and the picked supplier's account exhibition. The gracefully methodology may have been de-gambled had the Government surveyed the relationship risk and considered conditions inside the agreement for non-execution, entitling them to send for the elective supplier or look for cures.

2.3 Quality assurance of automotive manufacturing industry

Procurement supply chain management must examine the supply chain of the standards that are determined to check the capability of the JDPi in the standards of industry. There are a number of ranges that are implemented in the manufacturing industry that are necessary to gain the quality in the manufacturing. Procurement supply chain management has to work according to the standards and rules that could be difficult to handle the quality and the regulations both at the same time.

2.4 Contracts and agreements of automotive manufacturing industry

Procurement supply chain management should examine the contract with the suppliers that are based on the agreements of the services to manufacture the vehicles according to the legal standards of regulations. The agreements are required to be understand the according to the legal implications of rules that is a hard task to do by procurement supply chain management.

2.5 Cost and efficiency of automotive manufacturing industry

The procurement supply chain management drive is to diminish cost and improve productivity of the flexibly chain by evaluating the through life cost of an item. It could be implemented from beginning to removal, by inspecting the Total Cost of Ownership. This allows complete expenses to be resolved, empowering an actual existence cycle cost-based choice to be applied. The Government may include different kinds of taxes that increase the cost and it could impact on efficiency of the production. In spite of the fact that the underlying expense may be higher it gives some adaptability, which was required when a change to the degree was presented.

2.6 T ENDERING

The project tendering is actually a process in which the companies bid to carry out the particular packages essential to the complete the project. The tendering principle is to make sure that it achieves the true competition and tenders received which will be evaluated by making the particular criteria for the project. Furthermore, the development competitive equilibrium means that the project tender as the addition of the strategy to complete the project in effective manner and the project valuation at the basic theories of tendering that can be supported. Although, there are serious empirical, methodological as well as theoretical inconsistencies are in the theory. The tendering has also the advantage that it can stimulate the innovation to provide the service as well as it also gives the opportunity to evaluate the incentives and the pricing structures again. The main benefit of the tender is that it gives the best value for outcome in the form of money from activity of procurement.

2.7 PESTEL ANALYSIS of automotive manufacturing industry

Several types of problems may exist in the project but some external factors can also be very influential on the project and can be the reason of success and failure of the business. In this section, the political factors are discussed which can have the high impact on the project.

·          Political Factor

The political factor is very influential on the project and the workability of the company. In the political factors, some rules and regulations have been included and legislation is telling that the government is favoring the low emission vehicles. But it is also shown a high increase in the taxes of luxury vehicles.

·          Economic Factor

The economic crisis has damaged the vehicle manufacturing industry and due to this reason, the demand for the luxury vehicles is also affected in the critical financial conditions time.

·          Socio economic

The people in the country are giving preferences as well as the cultural trends are also affecting the automotive vehicle industry. Furthermore, JDPI should adopt the socio-cultural value or forces including the preferences of people by introducing the vehicle quality. Although, the specific styles and core values in the culture of United Kingdom are preferred but some regions in the United Kingdom has the high demand for the vehicle such as London, Manchester and other cities.

·          Technological

It is the very influential external factor which can business of company successful and the main bridge towards success. There are many companies in the world that are using the new technology to increase their growth and business. The company has also take this fact serious, so the system for the business is being developed by contracting with the development company. It is necessary because the more technology the company has, it will have the more market share.

·          Environmental

The environment is changing day by day due the carbon emission and cause of the pollution. The government is focusing more on the sustainability of the environment, so the companies are also focusing to manufacture the electric vehicles which can support in sustainability.

·          Legal

Some the legal factors are also discussed in this section. The automotive vehicle manufacturing companies are expanding regulations on safety of vehicle, regulations for emissions and the environment sustainability regulations.

3.0 Benefits of JDPi for competitive tendering approach

JDPi can access multiple benefits and competitive tendering approaches that can provide the source to the IT system. although different common challenges are faced by procurement and supply chain managers and the requirement is to find the solution and possible alternatives so that the managers can overcome the challenges. There are different possible ways and strategies that can be used for the minimization of these challenges.The competitive tendering approach in the present case involves the advertisement interest of the company to acquire the supplies and services and to respond the tender in the business CITATION Gra12 \l 1033  (Winch, 2012) .

3.1 Benefits

The competitive tendering in JDPi will promote the business, competition and provide transperancy to the suppliers. the situation can tern as price tags are driven down but the question here is what may be cost. The people and companies will further meet the lower requirement of price and it will cut the commers. The present condition of JDPi for cutting the corners will eventually result as losses   CITATION Cam03 \l 1033 (Cambini & Filippini, 2003) .

3.2 Challenges

In our country, the procurement guidelines are designed to allow the suppliers for the tender to be considered for the decision of procurement. As JDPi is the leading supplier and tender are not often not given to suppliers. In this process, only purchasers can consider the bids from the suppliers. suppose the leading suppliers are not considered then the purchaser may end up for buying inferior product or services   CITATION Góm01 \l 1033 (Gómez-Lobo & Szymanski, 2001) . the possible disadvantages for JDPi are listed below,

1.     JDPi may face barriers to communication between customers and suppliers.

2.     The cost-plus phenomenon can be used to bear trap in the purchase of services and goods.

3.     Sometimes, the leading suppliers may not be getting the tender.

4.     The supplier is forced to use the poor-quality materials, cheaper and labor conditions. If the cheaper materials and labor are poor it will affect the product and services.

5.     The buyers are urged to put the tendering process, checks and balances.

6.     It is possible that the competitive tendering can be extremely slow process for the agencies, suppliers and tendering process.

7.     The low margins in JDPi can cause insufficient profit margin that allow the investment, research and development, equipment, and new technology CITATION Car12 \l 1033  (Carter, Kirby, & Oxenbury, 2012) .

3.3 Strategies to minimize challenges

The appropriate type of the solution for the competitive tendering can vary based on type and complexity of the product provided by JDPi. The other factors that can affect it are price of the purchase, one-off, long term supply relationship and other principles of the contract CITATION Mur11 \l 1033  (Stanley, 2011) . Different strategies can be applied by JDPi for most procurement decisions and these strategies are listed below,

1.     Open the communication sources for potential and current suppliers.

2.     Even the research of the purchasing requires some alternatives, but it is important to find the possible solutions.

3.     The purchasing decisions for the customers, suppliers and contractors of JDPi are based on the strong trust relationship.

4.     The profit margin must be paid fair.

5.     It is important to develop healthy and long-term relationship between the suppliers and particularly in the reputable suppliers.

4.0 Terms and conditions that govern the contract

Capgemini UK PLC compiled the report that was developed to confirm the system and it could  upgraded to meet the requirements of the company. Considering the situation, JDPi developed a formal invitation for the tender and the work was involved for the upgradation of the system   CITATION Rob03 \l 1033 (Robertson, 2003) . The invitation of tender (ITT) was issued on the basis of standard terms of IT services ofJDPi. The standard terms and IT services are that govern the contract are listed below,

1.     Terms that bind the customers and suppliers of JDPi can only be changed after having the consent of the customers.

2.     The customers will be provided by the facilities and information and there are necessary steps for the suppliers to take for the improvement of services.

3.     The responsibilities of the customers are based on the operational and environmental conditions and the system can only be used for the usage, testing, controlling, and modification of the system. the process is designed to ensure that customers are adequately trained the users in an appropriate way to use the system   CITATION Est06 \l 1033 (Estlund, 2006) .

The contact for the project are essential to bound the parities on the agreed points. The main benefit of the contract is that the constructor or the service provider cannot break the rules in the project and the same thing is also applied on the clients. Every type of regulations and rules related to project will be mentioned on the contract. So, the work will be done by the contractors will purely be legalized.

5.0 Legal rights and obligations of JDPi

There are different aspects of contract and negligence of business and it can be analyzed on the basis of legal patterns. The law and procedures are designed to reduce the aspects of contract and negligence for the business. the case is extreme important and business issue the cropped-up conditions in the performance. According to McKendrick (2014) there are multiple types of obligations and contracts that are related to the business and the practiced regulations and norms are defined for the specific business. the rules and legal laws can vary in terms of intensity but the overall rules and regulations for business contracts are almost same in nature. JDPi automotive manufacturers are operating number of IT systems, therefore the legal rights and obligations are also under the designed rules of artificial intelligence. Since JDPi decided to replace the previous version to the new version it is important to select an appropriate level of management and discard the existing system in a most effective way. the legal considerations are to make improvement in the previous work with general efficiency and effectiveness, response time must be speeded up, and integrated system in the company must be designed in such a way that it can work under the rules and regulations defined by company and government   CITATION Aug13 \l 1033 (Augenstein & Kinley, 2013) . The competitive tendering offers are created for the development and implementation of new software system under the defined resources. JDPi is not in position to deal with the Capgemini UK PLC. The focus of JPDi case study is to appraise the main contract issues and find the alternative implications under the legal conditions for major programs and project. JDPi is required to reconsider the legal issues that are linked with the formation of supply chain. Even JDPi is facing challenges in operating the IT system but still new strategies and implications are supposed to be under the legal and law aspects. For the contract, the contributor content is developed for preservation and disclosure is reasonable for the legal process, claims for the content violation, rights for the third party such as Capgemini UK PLC, and protection of rights, personal safety, property, and public. In case of any provision, the terms are held for the not performable and illegal and the validity of the remainder will not be affected   CITATION Mur11 \l 1033 (Stanley, 2011) . 

Source: (Li, et al., 2003)

6.0 Advise for Capgemini UK PLC

In this section, some advisory comments are given for the Capgemini UK PLC because it has faced several types of the problem and failures into the software. Due to the failure on the software, the company has to loss the very important and sensitive data including staff demotivation.The software should be replaced and upgraded because the technology in the world is consecutively changing day by day. The new software which will beimplemented in the company,Capgemini should have to make deal the JDPi and this thing should also be added in the contract paper along with the signature of the stakeholders of JDPi, and ensureJDPi that the software will be delivered byCapgemini UK PLC timely after making some amendments to the company in exchange of agreed payment amount and method.It should also be mentioned clearly in the contract that the payment will be given to PLC for the changes or upgradation will be extra amount in the project.

Figure   SEQ Figure \* ARABIC 3 :  Supply chain conceptual framework

Source: CITATION Iva \l 1033 (Ivanov & Sokolov, 2009)

7.0 Different possible sources to be approached

The procurement problems are very challenging which must be resolved as well as must be by using different types of sources in the procurement procedures. The good approach for the procurement in the company is the use different types of sources. So, some different possible source which should be approached are discussed in this document. The first source is developing a governing supply chain council that will have the purpose to give appropriate direction through instructions as well as provide help to align the strategy of the supply chain with the overall strategy of the company. Secondly, the company must need to properly align and staff the supply chain organization which can be the very difficult as well as very challenging task for the company to organize the supply chain function in a way that enhance the effectiveness as well as bring corresponding benefits to the company. Another source for the procurement is very important as well as can be placed at the level of essentials for the company that technological work. The information technology should be introduced in the company which can increase productivity as well as enhance the progress and performances of the employees and overall company. JDPi should to replace the current system with the new technology and must focus on the new hardware or system for upgraded technology   CITATION Can03 \l 1033 (Canova & De Nicolò, 2003) .

8.0 Conclusion of automotive manufacturing industry

It is concluded that the it must be proper enforcement of the rules and regulations that are arranged in the JDPi manufacturing industry. Procurement supply chain management has to face different kinds of the challenges in the manufacturing industry. Hence, there must be proper selection of the suppliers as performance of the company is based on the quality of the machinery and raw material used in the manufacturing industry. Procurement supply chain management should examine the contract with the suppliers that are based on the agreements of the services to manufacture the vehicles. In this process, only purchasers can consider the bids from the suppliers. The other factors that can affect it are price of the purchase, one-off, long term supply relationship and other principles of the contract. Considering the situation, JDPi developed a formal invitation for the tender and the work was involved for the upgradation of the system.There are different possible ways and strategies that can be used for the minimization of these challenges. The case is extreme important and business issue the cropped-up conditions in the performance. JDPi is not in position to deal with the Capgemini UK PLC. JDPi is required to reconsider the legal issues that are linked with the formation of supply chain.

Recommendations of automotive manufacturing industry

Followings are the suggestions made according to the case study analysis:

·        JDPi must continue to undertake different efforts to strengthen the sustainability in the management of the company. It should promote different methods such as the cost and benefit structure to realize that management is working according to the competitive market requirement.

·        JDPi must accelerate its business expansion and to implement growth in the monitoring of market conditions to gain the new products and quality of the product according to the requirement of customers.

·        It should consider making different priority product according to the market. That makes it possible to gain the competitive advantage among the other core manufacturing in the segmentation of market. With the increasing production and facilities increase to the customer, it have to take different decision about the minute middleman management to show that engineers are more accurately working according to the instruction of authorities.

·        There must be support to consolidate management on the global level so that the power of workplace and diversity of the human resource management could be dwelled on international level.

·        As concerned with the instructions and infrastructure safety measures, there must be compliances and observations of laws and regulations that actively participate in the manufacturing of vehicles.

Bibliography of automotive manufacturing industry

  BIBLIOGRAPHY Augenstein, D., & Kinley, D. (2013). When human rights ‘responsibilities’ become ‘duties’: the extra-territorial obligations of states that bind corporations. . Human rights obligations of business: Beyond the corporate responsibility to respect.

Cambini, C., & Filippini, M. (2003). Competitive tendering and optimal size in the regional bus transportation industry: an example from Italy. Annals of public and cooperative economics , 163-182.

Canova, F., & De Nicolò, G. (2003). On the Sources of Business Cycles in the G-7. Journal of international economics , 77-100.

Carter, R., Kirby, S. K., & Oxenbury, A. (2012). Practical contract managment. Liverpool Academic Press. Retrieved from https://www.abcassignmenthelp.com/aspect-of-contract-and-negligence-for-business

Estlund, C. (2006). Something Old, Something New: Governing the Workplace by Contract Again. Comp. Lab. L. & Pol'y J. , 351.

Gómez-Lobo, A., & Szymanski, S. (2001). A law of large numbers: bidding and compulsory competitive tendering for refuse collection contracts. . Review of Industrial Organization , 105-113.

Ivanov, D., & Sokolov, B. (2009). Adaptive Supply Chain Management. Springer Science & Business Media.

Robertson, M. (2003). "Is Assent Still a Prerequisite for Contract Formation in Today's E-Conomy. Wash. L. Rev, 78 , 265.

Stanley, M. B. (2011). Seven Reasons Competitive Tendering Fails (And What You Can Do About It) . Retrieved from https://www.processexcellencenetwork.com/innovation/columns/seven-reasons-competitive-tendering-fails-and-what

Winch, G. M. (2012). Managing Construction Projects. John Wiley & Sons.

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ENG7146: JDPi Automotive Manufacturer Case Study - Engineering Assignment Help

Assignment task:.

Learning Outcomes to be Assessed:

Evaluate common challenges faced by procurement and supply chain managers and how to overcome them.

Appraise main contracting issues and the legal implications for major programmes and projects for successful completion.

Critique the main legal issues that relate to the formation of relationships in supply chains

Description: 

JDPi Automotive manufacturer

JDPi is an automotive manufacturer and it has been operating a particular IT system for the past 5 years for some of its administration and payment arrangements. More recently though, it has been hit by an increasing frequency of system breakdowns and consequent periods of down-time. This has led to increasing loss of data and de-motivation of operating staff.

JDPi has decided to replace the existing system with the latest version. A business case was produced and approved at the appropriate levels of management. The supplier who had sold JDPi the existing system (Capgemini UK PLC) was asked to provide a feasibility study to assess how the system could be upgraded with a view to several objectives being satisfied, namely:

Significant (and measurable) improvements in its general efficiency/effectiveness

Response times being speeded up considerably

Integration with other IT systems operating within the company to allow for sharing of information internally and externally with several suppliers and customers

The head of procurement, Ben Clegg, has formally stated that a competitive tendering exercise should be done to create a competition for the new software in accordance with JDPi’s procurement policy. A dispute between the head of human resources and Ben  has arisen as the head of human resources was unable to understand why JDPi cannot negotiate a deal with Capgemini UK PLC and why there is a need to delay things so that other quotes can be received.

Ben replied that ‘It is our normal policy for purchases costing in excess of $5,000, which this will be on a yearly basis, to run a competition between suppliers. This ensures we have a proper, fair competition in accordance with our procedures. I will need your help in developing a plan for sourcing this service from interested suppliers as we will need to create appropriate selection criteria that prequalifies interested suppliers. We also need to create award criteria as we should consider other factors in addition to the price for licensing the software. We should then operate a competitive tendering process in our normal way and ensure compliance with any necessary technical standards such as data protection issues’.

The stakeholders of JDPi have indicated that they will support the new tendering exercise as they have heard about an e-auction (reverse auction) system which is used to obtain bids on line and believe that this could save valuable time.

Your Task Discuss the benefits for JDPi of using a competitive tendering approach (as well as the use of e-auction) to source the IT system. What common challenges faced by procurement and supply chain managers can be overcame? What other ways/strategies can be used to minimise those challenges?

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Introduction.

This report is aimed at analysing the procurement process and the contract law that binds the parties under the agreement. The analysis will be based on JDPi case study, an automotive manufacture that is in the process of procuring an improved IT system for its business processes. Contract law is important in controlling and regulating parties in a procurement process. While parties can agree the procurement terms freely, the documentation of the terms of engagement in writing is important to bid the contract, (Yukins, 2010). Procurement is therefore the process obtaining and finding services or goods and agreeing the terms of delivery of the goods or services. The process is important and it leads to the emergence of a contract between the parties involved, (Olatunji, 2014). Managing the procurement process and supply of the procured items or services is of large importance, however, it is faced by various challenges that has made the procurement process one of the risky areas in today’s business. Some of the challenges faced in today’s procurement process include methods of managing risks after issuing the contract such as financial status of the supplier, maintain the brand reputation and image in the procurement process, ensuring that there is stakeholder engagements and acting socially responsible, (De Araújo et al, 2017). This has resulted to the adoption of various methods of entering into procurement contracts, among them being competitive tendering and use of technology in the procurement process such as the e-auction.

The first section of the report will analyse the importance of competitive tendering and as an approach to the procurement and use of e-auction in the process. It will also look at the challenges that face by procurement managers and how to overcome them. The second part will analyse the use of legal aspect of procurement contracts by analysing the terms and conditions used in the case study procurement contract, their legal implication and enforcement of different clauses as stated by the document contract terms. The report will then conclude with analysing different approaches that JDPi could use in sourcing IT systems as well as their legal implications of such relationships.

Part 1: Procurement Approach and Common challenges faced by procurement and supply chain managers

1. benefits for jdpi of using a competitive tendering approach..

Competitive tendering is common in the UK procurement process for its perceived notion of getting the top bidder with best quality products or services at lower costs, hence, there is value of money by the organisation undertaking the procurement, (Hay, 2013). The benefits that JDPi expects to get from using the competitive tendering approach include;

Under such a procurement competition set-up, e-auction is used to facilitate the tendering process. E-auction is an internet based auction based process where the auctioneers, which are the seller, invite the suppliers, which are the bidders, in an electronic market place to place their quotations, (Pavlov and Katok, 2011). It therefore provides the procurement managers with alternatives for the intended purchase while putting the suppliers against each other on the electronic platform to see who can offer the best price thus saving time to read manual proposals and quotations.

Benefits of Using E-auction.

However the improvements made to make the procurement process smooth, managers in the procurement and supply chain are always faced by challenges in the process of procurement as shown below.

Common challenges faced by procurement and supply chain managers.

Minimising this challenges is of large importance and the management can use various ways as explained below.

Ways/strategies that can be used to minimise Procurement/Supply challenges

Part B: Contract Law.

2. terms and conditions that govern the contract.

Capgemini UK PLC Terms govern the contract. Under any contractual agreement between two parties, the party that made the last circulation of the terms of the contract before the performance of the contract govern the contract, (Austen-Baker, 2017). Under this case study, Capgemini UK PLC made the last circulation of the terms of the contract deleting some of the clauses and refining other clauses sent by JDPi Automotive. This followed days after the JDPi had the terms of supplier engagement by as outlined by the company. After going through the terms, Capgemini UK PLC made some changes to the terms and issued them to JDPi defining their terms of engagement for the contractual agreement to go on. Both parties agreed and work begun at this point. Hence, the full scope of the terms that were lastly issued came from Capgemini UK PLC and are deemed to be the terms of the contract, (Beale, 2013). Also, as the work went on and JDPi opted to update the MSV3 system to the latest X2014 system, Capgemini UK PLC issued the last terms on the additional payment of the work done where JDPi, however reluctantly, agreed to it hence one the work was completed in December, the company had an obligation to pay Capgemini UK PLC the additional amount as its terms had been governing the contract.

3. What it mean to the legal rights/obligations of JDPi

After agreeing to enter into the procurement contract with Capgemini UK PLC, the contractual agreement gave rise to rights and obligations of JPDi towards the performance of the contract. First, the company (JDPi) was required to follow the contract terms as presented by the final documentation presented by Capgemini UK PLC. According to the terms of engagement sent by Capgemini UK PLC, the company has the following rights whose failure to adhere by Capgemini UK PLC will be subject to further legal actions;

However, the company also has the legal obligations to the following,

4. Payment Advise to Capgemini UK PLC

According to the terms of contract for the additional work, Capgemini UK PLC has the legal right to enforce the extra payment of worth £100,000. This is because, the last terms of the contract as circulated by Capgemini UK PLC implied that for the additional work that was needed to upgrade the System further from MSV3 to the latest X2014 system and compete within the originally set deadline, JDPi had to pay additional £100,000. JDPi agreed to this and Capgemini UK PLC did the necessary arrangements to see the work was done and completed on time. The counter offer presented by Capgemini UK PLC was the last term of the contract for the additional work, which the JDPi agreed to hence has a legal obligation to pay the extra £100,000. According to the contractual law, an offer can expressed by words or conduct, (Austen-Baker, 2017). An offeror is bound by the terms of the contract is in his words or actions/conduct even when a reasonable third party observe is introduced to the contract, would believe that he intends to be bound by the contract, even when the he intends not to be bound by the contract, (Peel and Treitel, 2007). With the amount of work initially agreed upon and done, the new engagement was not part of the work and it would be expected that adding more work would results to revising of the payment by supplier. According to the first contract terms, the service fee to be charge for the contract was supposed to be provided by the supplier depending on the scope of the work to be done, (Cartwright, 2016). On the additional of more work and the need to complete within a short time, Capgemini UK PLC issued the new service fee which JDPi intentions to need the work done showed that he was willing to be bound by the contract although unwillingly. Therefore, JDPi has no any other option than to pay for the agreed extra £100,000 price and Capgemini UK PLC should legally enforce JDPi to pay.

Part 3: Main Legal issues in Supply Chain Relationships.

5. different sourcing approaches that could be used by jdpi and legal aspects to consider..

Depending on the business strategy of JDPi, it weigh different sourcing strategies that best fits the business model. This strategies all have different legal implications to the business and the type of contractual arrangements. They include;

Austen-Baker, R., (2017). Implied terms in English contract law . Edward Elgar Publishing.

Cartwright, J. (2016). Contract law: An introduction to the English law of contract for the civil lawyer . Bloomsbury Publishing.

Beale, H. (2013). Relational values in English contract law. Changing Concepts of Contract, 116-137.

Taylor, T. A., & Plambeck, E. L. (2007). Supply chain relationships and contracts: The impact of repeated interaction on capacity investment and procurement. Management science, 53(10), 1577-1593.

Dekker, H. C., Sakaguchi, J., & Kawai, T. (2013). Beyond the contract: Managing risk in supply chain relations. Management Accounting Research, 24(2), 122-139.

Touboulic, A., Chicksand, D., & Walker, H. (2014). Managing imbalanced supply chain relationships for sustainability: A power perspective. Decision Sciences, 45(4), 577-619.

Pavlov, V., & Katok, E. (2011). Fairness and coordination failures in supply chain contracts. Available at SSRN 2623821 .

Yukins, C. R. (2010). A versatile prism: Assessing procurement law through the principal-agent model. Public Contract Law Journal, 63-86.

Olatunji, O. A. (2014). Views on building information modelling, procurement and contract management. Proceedings of the Institution of Civil Engineers-Management, Procurement and Law, 167(3), 117-126.

De Araújo, M. C. B., Alencar, L. H., & de Miranda Mota, C. M. (2017). Project procurement management: A structured literature review. International Journal of Project Management , 35(3), 353-377.

Hay, C. R. M. (2013). Purchasing factor concentrates in the 21st century through competitive tendering. Haemophilia, 19 (5), 660-667.

Reeves, E., Palcic, D., Flannery, D., & Geddes, R. R. (2017). The determinants of tendering periods for PPP procurement in the UK: an empirical analysis. Applied economics, 49(11), 1071-1082.

Saenz, M. J., Koufteros, X., Touboulic, A., & Walker, H. (2015). Theories in sustainable supply chain management: a structured literature review . International Journal of Physical Distribution & Logistics Management .

Peel, E. and Treitel, G.H., (2007). The law of contract (pp. 1-2). London: Sweet & Maxwell.

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Assessment Title: A case study analysis of JDPi Automotive manufacturer

Assessment Summary

For the given scenario (CASE STUDY, PFA), you will evaluate with reference to law and legal aspects, the challenges faced by JDPi automotive manufacturer and their respective supplier for the project in question.

Once the evaluation is complete, you should be able to suggest appropriate measures to resolve existing challenges and mitigation, for successful completion of the project and organizational success.

The total required is 3000 word Report.

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IMAGES

  1. Automotive Case Study

    a case study analysis of jdpi automotive manufacturer

  2. A case study analysis of JDPi Automotive manufacturer

    a case study analysis of jdpi automotive manufacturer

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    a case study analysis of jdpi automotive manufacturer

  4. Coursework 1 Co Assignment Title:- A case study analysis of JDPi Automotive manufacturer

    a case study analysis of jdpi automotive manufacturer

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    a case study analysis of jdpi automotive manufacturer

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COMMENTS

  1. A Case Study Analysis of JDPi Automotive Manufacturer

    A Case Study Analysis of JDPi Automotive Manufacturer 1. Introduction This report is centered upon the supply-chain management of the JDPi (Joint Desired Point of Impact) automotive manufacturer as well as regarding the problems and 3 also to manage the unfavorable situations. A lot of approaches to address the

  2. A Case Study Analysis of JDPi Automotive Manufacturer REVISED.docx

    3 A Case Study Analysis of JDPi Automotive Manufacturer 1. Introduction This report is centered upon the supply-chain management of the JDPi (Joint Desired Point of Impact) automotive manufacturer as well as regarding the problems and also to manage the unfavorable situations.

  3. A_casestudyanalysis_of_JDPi_Automotive_manufacturer.docx

    Coursework 1. Co. Assignment Title:- A case study analysis of JDPi Automotive manufacturer Module Co-coordinator:-JAHANGIR AKHTAR. Student Number:- 20127403 Student Name:- Habiba Nur Module Title:-Procurement and Contract Law Module Code:-ENG7146 Due Date:- 17/05/2021 Table of Contents Question 1. Benefits of JDPi: Challenges faced by Procurement and Supply Chain Manager: Overcome the ...

  4. Case study of JDPi 3.docx

    A case study analysis of JDPi Automotive manufacturer 1 Abstract 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). In the majority of cooperation's, the ...

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    Benefits for JDPi of using a Competitive ... African Studies American Studies Animation Anthropology Architecture Art Asian Studies Cooking & Baking Cultural Studies Dance Design Education & Teaching English ... Calculus Cryptography Differential Equations Discrete Math Geometry Graphs Linear Algebra Mathematics Number Theory Numerical Analysis ...

  6. A case study analysis of JDPi Automotive manufacturer

    JDPi is an automotive manufacturer and it has been operating a particular IT system for the past 5 years for some of its administration and payment arrangements. More recently though, it has been hit by an increasing frequency of system breakdowns and consequent periods of down-time.

  7. Coursework 1 Co Assignment Title:- A case study analysis of JDPi

    Coursework 1 Co Assignment Title:- A case study analysis of JDPi Automotive manufacturer Coursework 1 Co Assignment Title:- A case study analysis of JDPi Automotive manufacturer Coursework 1 Co Assignment Title:- A case study analysis of ... [Show More] Preview 2 out of 13 pages Generating Your Document Report Copyright Violation

  8. A Case Study Analysis of JDPi Automotive Manufacturer

    JDPi is an automotive manufacturer and it has been operating a particular IT system for the past 5 years for some of its administration and payment arrangements. More recently though, it has been hit by an increasing frequency of system breakdowns and consequent periods of down-time.

  9. Coursework 1 Co Assignment Title:- A case study analysis of JDPi

    Coursework 1 Co Assignment Title:- A case study analysis of JDPi Automotive manufacturer Module Co-coordinator:-JAHANGIR AKHTAR Student Number:- 20127 ... [Show More] Preview 2 out of 13 pages Generating Your Document Case Details Recommended documents View all recommended documents » 12 pages ENG 225 Music and soundsc...

  10. Case study analysis of automotive manufacturing industry

    The report is based on the supply chain management of the JDPi automotive manufacturer and there is complete discussion about the challenges and to control the risk in the market. There are strategies to deal with the challenges that could be used to minimize the risk of the challenges.

  11. ENG7146: JDPi Automotive Manufacturer Case Study

    JDPi is an automotive manufacturer and it has been operating a particular IT system for the past 5 years for some of its administration and payment arrangements. More recently though, it has been hit by an increasing frequency of system breakdowns and consequent periods of down-time.

  12. AD154 Procurement and Contract Law

    This report is aimed at analysing the procurement process and the contract law that binds the parties under the agreement. The analysis will be based on JDPi case study, an automotive manufacture that is in the process of procuring an improved IT system for its business processes.

  13. Assessment Title: A case study analysis of JDPi Automotive manufacturer

    Assessment Title: A case study analysis of JDPi Automotive manufacturer Assessment Summary For the given scenario (CASE STUDY, PFA), you will evaluate with reference to law and legal aspects, the challenges faced by JDPi automotive manufacturer and their respective supplier for the project in question.

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