| Henkel’s Journey to Purchasing Excellence | | | | Submitted to: Prof. Sir Zulqarnain Bukhari |

Submitted by: Muhammad Asad Noreen Khurshid Irtaza Aitzaz Hassan Rashid Sidra Khan
Anum Sharif

Segmentation
In the process of segmentation we are recommending to segment on the basis of the volume/demand of the category forecasted annually. So on the basis of this the segments will be as follows:
Segment A:
Upto 5000 Metric Tons > Polyster 105,106,107,108,109
Segment B:
More than 5000 Metric Tons > Polyster 100,101,102,103,104
We have two segments now on the basis of demand forecasted. We will further base our supply management strategy in accordance with volume. Now we will apply Material Purchasing Classification Matrix.

Volume/Demand

B

A

Segment B lies in the quadrant of Strategic Item it identifies that we need to focus on that because this segment has High Risk i:e the supplier of that segment are only 2 major suppliers of which Alpha is the main supplier supplying all categories of material.
Segment A lies in the Quadrant called Bottleneck items, which identifies that it has low volume but high supply risk because few suppliers are available. And one os the category called 105 is supplied by only Alpha.
Identify Interdependencies
The internal stakeholders are from various departments, which are as follows: * Supply Chain and Production ( Sascha Krause) * Sales ( Carlos Zhang ) * R&D ( Dr. Angelika Bertin ) * Purchasing ( Katharina Wallace )
In order to select a new source we have to contact Angelika Bertin because she can provide information about alternative material.
After that Sascha schedules the production slot to run the test in production of alternative which is then evaluated by R