Vendor rating system for chemicals and packaging materials; Godrej Soaps

Abstract

In an environment when the purchase fiction is slowly turning to a pure-chase affair, this project aims at bringing objectivity in the purchase function as well as to improve Vendor performance. Till date Godrej Soaps does not have. a formal rating system. Although a constant informal rating operation is being carried out with the managers depending heavily on memory and inter-personal relationships. A formal procedure- is now aimed at which would involve - documentation using the available data with or without suitable modifications. The process of vendor selection, development and. maintenance have - been suggestively outlined for the company. The development of a Vendor Rating System needed a formal rating procedure to be followed. The system is developed such that it can work with the data and information already generated by the company — | To start with, 2 systematic study of various fields were made. Starting with the department involved- the Purchase -department, and -later on of. the purchase environment and the interactions of the various departments in the Factory environment. These studies give a fair picture of the working procedure and data availability. A detailed study of the data sources Production programme, daily control report, MRP, Packaging Feedback Report, Price Register etc.) confirmed the data availability and-usability. Using these. as a background a suitable mode! for a Vendor Rating System was evolved which will take care of the large product range.