Procurement and Inventory Management

PROCUREMENT AND INVENTORY MANAGEMENT

Introduction

Fresco Corporation is a well-known manufacturer of unpreserved and frozen foodstuffs . The main headquarter of the Fresco Corp . is situated in the Spain , the same location as where the company is focusing their distribution process . The said food manufacturing company has three product lines namely : Diary Products , Packaged Salads and Frozen Pizza all of which are implementing the sourcing strategy around Europe and is associated in the National Production Network in the United Kingdom . The Fresco Corp . is employing the mixed production of high volume , consumer

br products and products that target the professional customer segment of the market . The business also anticipates a very high quality in their manufactured products to be delivering to the consumer . The volume of turnover reaches 3 ,600 Mio . EUR per year in a volume basis and the company provides 40 percent for enhancing the product before offering it to the consumers and majority of the procurement cost is allocated for raw materials in the production process

Describing the business environment of the Food Industry that includes the Fresco Corp , according to one article of J .J . Pierce , Europe 's Growing Frozen Food Market Surpasses 12 Million Ton Barrier , the ready-to-eat foods increased in demand during the year 2002 compared to the other commodities . This is true for the Eastern part of Europe However , the situation was reverse in the Western and Northern portion of Europe with the exception of Sweden and Spain , which is the main office of the Fresco Corp (Pierce , October 2003

Rosie Hartman , an executive of the Net Market for Computer Sciences Corporation , illustrated the environment wherein the buyer and seller interact in the food processing industry as having a set of associations of company in the procurement process . Furthermore , in to gain more aggressive benefits among other competitors in the food industry , a company should develop a strong connection with its supplier , forming a series of supply chain ( CSC and INC2INC Create New Market Model Online Exchange Becomes Platform For Collaborative Commerce Among Food Processors , 10 May 2000 ) A supply chain or the logistics network of the company is responsible in moving the products from the side of the supplier to the reach of the end user . A proper management of the arrangements of this unprocessed resources and completed products that arrived and exit the company is sequentially to make the products available to the consumer is required thus arising the need of the suitable Supply Chain Management . The core service of the Supply Chain Management is to enhance the relationship among the linchpin partners in to reach , provide and deliver the expected customer value

Main Body

Every corporation struggles to concentrate on manufacturing a great volume of their core products . In for the corporation to bear with the competition , it must be flexible in acquiring the needed materials in the production . It would take a great effort to produce those needed raw materials and it accompanies greater risk if the production...