7/25/2019 PMM Assignment - 4

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PMM Assignment 4: Case Study on AM Transportation

Sameer Dubey 44C

Ans 1- Vineet should have worked frst on the supplier localization program which was

pending rom quite some time. The pending approvals rom H should have !een cleared

and it would have helped A"T to !ring down the costs. Ater getting the tender he should

have sta#ed !ack and talked to the critical suppliers himsel as he did !eore getting the

tender. He should have taken them into confdence again so that the production can start atthe right time.

Also$ %ust in order to get the tender he should not have !id so aggressivel# which led A"T to

this situation. He should have thought through o the consequences and alternate wa#s to

approach the pro!lem !# taking &'( and critical suppliers on !oard.

Ans )- Vineet must have proposed the &'( to provide loans to the critical suppliers at lower

interest rates so that the working capital !ecomes cheaper and the suppliers will ulfll the

*( rom A"T. The amount o loan can !e ad%usted later in the pa#ments. Alternativel#$ he

could have convinced the &'( to pa# or the supplies in advance and this pa#ment could !e

a certain percentage o the total pa#a!les.

Ans +- ,alil could have helped Vineet out !#

i /etting the approvals or the sot loan or the advance pa#ment scheme worked out !# himii 0o!!#ing or the pending approvals at Hiii "eeting with the critical suppliers and taking them into confdence to work out a avora!le

deal.

Ans - His plan or the reluctant suppliers should have !een to assuage their concerns

regarding the profts !# showing them the huge demand and providing monetar# assistance.

He should interact with the level two suppliers as well who suppl# raw materials to the main

A"T suppliers. He should work out a deal that !enefts all the parties. 2hen !oth input cost

and working capital !ecome cheap the reluctant suppliers will honor the *(.

Ans 3- The ke# learnings rom this pro%ect are

i 4n case o such aggressive !argaining it is important to !e in constant touch with the

suppliers and sta# on top o the situation.ii A long term strateg# and alternative wa#s should !e thought through in pressure

situations. A quick f5 solution or overnight success is di6cult to implement.iii 4t is important to ensure smooth e5ecution and completion o the pro%ect !eore

starting the cele!rations.