Striking the right deal
Vipul Chauhan , purchase manager, W Goa talks about challenges and new processes introduced for hassle free procurement.
What is the biggest challenge in purchasing today?
Firstly, logistics play a very important role, especially when it’s a place like Goa, as infrastructure isn’t that developed. Secondly, there is a high cost involved to ensure that everything reaches in time.
What vendor compliance systems did you initiate for cost savings?
Only way is through better negotiation, wherein the cost of procurement should be on the lower side. By studying the chain of processes till you get the required material in your premises, storage becomes a main component where you can create savings, which will further help streamline purchases. Also when you have National & Cluster levels contracts you can achieve higher cost reduction through local vendors.
What new processes did you introduce to examine high-risk vendors?
First thing before getting in the vendor, one has to analyze the reputation of the vendor in the market, his annual turnover, infrastructure, what standards they follow related to hygiene – storage – delivery and market hold in terms of credit period. To cross-check vendor audits one has to ensure this is done through a third party. Finally, it is also helpful to have an alternative back-up plan in case of an emergency situation.
How do you train your team to follow procedures for smooth coordination in supply chain management?
We have our own system in place at W GOA, wherein you have daily task details which need to be followed and best practices that make sure everything we offer is a 100% perfect!