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How do global procurement managers deal with a sudden demand spike? When the demand goes down how do the global managers manage the suppliers?

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Question added by Mohammed Abid Bijnori , Engineer , Mahindra & Mahindra Ltd
Date Posted: 2017/06/03
Ahmed MOHAMMED MOHAMMED AHMED EWIDA EWIDA
by Ahmed MOHAMMED MOHAMMED AHMED EWIDA EWIDA , senoir sales , alshaya company

CGN Generally Takes A 6 Step Approach Towards Sustainable Capacity Management:

  1. Supplier Identification and Engagement - a critical first step in developing a collaborative program that defines the relevant level of intervention with suppliers
  2. Deep Dive Capacity Assessments - involve “doing the homework” prior to supplier visits as well as detailed on-site assessments for identifying all capacity challenges at a business level
  3. Mitigation Planning - establishes commitment through clear understanding of roles & responsibilities, timeline and investment expectations from both sides
  4. Enterprise Capacity Planning & Modeling - Tactical action plans are augmented with a strategic understanding of the mid-long term supply and demand gaps across the supply base to further refine the mitigation plans
  5. Governance - collaboration, coordination and control are extremely important for providing continuous focus on the common goals of the program and ensuring success
  6. Action Plan Management - ultimately, relentless execution by working the plan is the key to achieving success

Mohammed Awad
by Mohammed Awad , Regional Supply Chain & Operations Director , Tamakkon Co.

It is better to have Long Term Agreements and deal with the JIT system.  This will enable a lot of inventory control as well for guarantee therefore if they are global managers then they have the experience to deal with so.

Saadi Abdallah Mohammad Abdel-Rahim Abdel-Rahim
by Saadi Abdallah Mohammad Abdel-Rahim Abdel-Rahim , Senior Logistics Officer , Oxfam GB

By having good flxibale contracts under LTA or FWA allowing for such demand fluctuation. Also by having alternative suppliers/dealers should existing contracts fail. You may also keep a breast of market changes by keeping an updated list of suppliers.

Omar Saad Ibrahem Alhamadani
by Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company

Thanks 

I support Mr. Awad's answers and I agree with him

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