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Drw Technologies Written Analysis

Autor:   •  October 5, 2018  •  Case Study  •  618 Words (3 Pages)  •  1,376 Views

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DRW TECHNOLOGIES

WRITTEN ANALYSIS

AND COMMUNICATION

SUBMITTED TO:

PROF. PAPIYA DE

PREPARED BY:

I036 KARAN MURALIDHARAN

I037 PRIYANKA MURJANI

I038 MRIDUL NAGAR

I039 NIKHIL NAYAK

I040 SAKSHI NAYAL

I041 TANISHA PARIKH

I042 AKSHAT PATNI


LETTER OF TRANSMITTAL

From: XYZ, ABC Consulting Pvt. Ltd.

Date: January 22, 2018

To: Ed Claiborne, DRW Technologies

Subject: Proposal for regulation and visibility of contract budgets

Dear Ed,

The following report examines the concerns in implementing the new purchasing policy. An effective method to tackle this problem would be to lay down a process of updating the contractual data via email, thereby facilitating exchange of information between you and the procurement managers at minimum cost.

Regards,

XYZ


EXECUTIVE SUMMARY

DRW Technologies has a predominantly silo-inspired organizational culture that vests decision-making power in the procurement managers for each manufacturing plant. In order to keep a check on the rising fixed costs for the various plants, a new purchasing policy has come into effect that requires all contracts above $250,000 to seek your prior approval before further processing. However, despite of giving a nod to the new purchasing policy, no procurement manager has sent you any updates with respect to the specified contracts two weeks before their signing. The recommended solution for you is to reiterate the process for the procurement managers in another email. The new process will require them to fax the needed contracts instantly to you, to avoid any delay in approval.


SITUATION ANALYSIS

Considering the current decentralized nature of the organization, the various manufacturing plants are accustomed to self-governance. Due to the prevalent autonomy within the plants, the costs have been increasing due to lack of budget control enforcement from the upper management. Your 6 year target of achieving 50% cost reduction requires that a new purchasing policy be implemented across all the manufacturing plants. The procurement managers, in spite of their positive response to the mail that communicated the policy, did not adhere to it.

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