W6_Doyin_How best to Procure Christmas Hampers for our Clients Using the Best Practices

W6_Doyin_How best to Procure Christmas Hampers for our Clients Using the Best Practices

1.     Problem Recognition, Definition and Evaluation:

   Christmas is a season which comes annually at the end of the year to celebrate with the Christians     the birth of Jesus Christ.

    For Corporate Organizations, it is usually a time of stock taking, measures of value additions, rewards and gift giving. This Blog focuses on the best method to employ in the giving of Hampers (collection of different items as gift) as corporate gifts to say thank you to our numerous clients for their patronage over the year.

2.       Development of Feasible Alternatives

·         Off shelve Procurement :  Procuring already made hampers in departmental stores

·         In house Procurement: Using our in house resources (Procurement dept) to put the hampers together.

·         Out Sourcing. Using Specialist of Hampers to procure them.

3.       Development of the outcomes and cash flows for each alternative:

The Alternatives will be evaluated based on the following Attributes.

I.                    Time.

II.                  Cost

III.                Branding

IV.                Quality

V.                  Variety

VI.                Packaging

4.       Selection of Criteria

Table 1. Alternatives

Attribute	Off Shelve Procurement	In House Procurement	Outsourcing
Time Saving	Excellent	Poor	Good
Cost Saving	Fair	Excellent	Poor
Branding	Poor	Very Good	Excellent
Quality	Fair	Very Good	Excellent
Variety	Fair	Very Good	Excellent
Packaging	Fair	Good	Excellent

 All these attributes are very important.

5.  Analysis and comparison of the alternatives: This is done by using 2 non-compensatory model s called Dominance and Satisficing to evaluate each alternative.

Table 2 feasible Ranges

Attribute	Minimum	Maximum
Time  Savings	10%	50%
Cost Savings	5%	40%
Quality	20%	80%0
Branding	3 items	5 items
Variety	7	20
Packaging	Fair	Excellent

For Dominance method in Table 1 Outsourcing is superior to all other alternatives considering the dominance of Excellent.  

The Satisficing method of feasible ranges eliminates off shelve procurement since its attributes fall outside the acceptable limits. Therefore In-house procurement and Out sourcing will be considered

The Non Dimensional Scaling of Compensatory model is also being used for this analysis in 

Table 3 – Non Dimensional Scaling

Attribute	Off Shelve Procurement	In House Procurement	Outsourcing
Time Saving	0	-1.46	0.49
Cost Saving	0.85	0	1
Branding	-1.67	0.670	0
Quality	1	0.286	0
Variety	1	0.386	0.077
Packaging	1	0.571	1
Sum	2.180	0.452	2.490 Best Choice

                                                                                                                    

6.      Selection of the preferred alternative

The best Alternative is Outsourcing since it eliminates Man hour wastage, gives room for Corporate Image branding, flexibility in variety and the quality will not be compromised. Though the impact of cost reduction is not tangible.

7.       Performance Monitoring.

        Performance will be measured by delivery time, and terms of reference (Quality, Variety, Branding, and Packaging) in the bidding/contractual documents.

       

8.       References

1. Sullivan,W.G, Wicks,E.M, & Koelling, C.P (2012). Engineering Economy (15^th edition.)(Chapter 14) New Jersey, NJ. Pearson Higher Education, Inc. 

2. Bratcher D. (Dec 2011) Season of the Church year. Retrieved from http/www.crivoice.org.....

3. Giammalvo, P.D (2012, October 22). Integrated portfolio (asset), program (operations) and project management methodology course (Power Point slides) (An AACE methodology course). Day 1(pp 15-20) Lagos.  Nigeria