Quality and short lead times for the items supplied

Part 1: Procurement Approach and Common challenges faced by procurement and supply chain managers

1. Benefits for JDPi of using a competitive tendering approach.

Under such a procurement competition set-up, e-auction is used to facilitate the tendering process. E-auction is an internet based auction based process where the auctioneers, which are the seller, invite the suppliers, which are the bidders, in an electronic market place to place their quotations, (Pavlov and Katok, 2011). It therefore provides the procurement managers with alternatives for the intended purchase while putting the suppliers against each other on the electronic platform to see who can offer the best price thus saving time to read manual proposals and quotations.

Benefits of Using E-auction.

Common challenges faced by procurement and supply chain managers.

1. Inaccurate data. For managers to make proper decisions in the procurement and supply process, reliable and accurate information is needed. Availability of accurate information need intensive digging on parties that are entering a supply or procurement contract, (Hay, 2013). Lack of this information or basing decisions on inaccurate date leads to procurement challenges such as lack of important items or shortages from the supplier in the midst of a procurement contract. This will have a huge impact on the organisation.

Minimising this challenges is of large importance and the management can use various ways as explained below.

Ways/strategies that can be used to minimise Procurement/Supply challenges

5. Improving the communication between the suppliers and end users of the procured items will enable to improve the chance of having the required items, (Reeves, et al, 2017). Solid communication helps in creating emphasizes and reduce the chances of negligence.

Part B: Contract Law.

1. To receive a working system under the company’s environment.

2. To receive a modified working system and training of employees on the usage of the new system.

7. In case of any faults on work done, JDPi has the right to request for remedy or re-performance of the work.

However, the company also has the legal obligations to the following,

According to the terms of contract for the additional work, Capgemini UK PLC has the legal right to enforce the extra payment of worth £100,000. This is because, the last terms of the contract as circulated by Capgemini UK PLC implied that for the additional work that was needed to upgrade the System further from MSV3 to the latest X2014 system and compete within the originally set deadline, JDPi had to pay additional £100,000. JDPi agreed to this and Capgemini UK PLC did the necessary arrangements to see the work was done and completed on time. The counter offer presented by Capgemini UK PLC was the last term of the contract for the additional work, which the JDPi agreed to hence has a legal obligation to pay the extra £100,000. According to the contractual law, an offer can expressed by words or conduct, (Austen-Baker, 2017). An offeror is bound by the terms of the contract is in his words or actions/conduct even when a reasonable third party observe is introduced to the contract, would believe that he intends to be bound by the contract, even when the he intends not to be bound by the contract, (Peel and Treitel, 2007). With the amount of work initially agreed upon and done, the new engagement was not part of the work and it would be expected that adding more work would results to revising of the payment by supplier. According to the first contract terms, the service fee to be charge for the contract was supposed to be provided by the supplier depending on the scope of the work to be done, (Cartwright, 2016). On the additional of more work and the need to complete within a short time, Capgemini UK PLC issued the new service fee which JDPi intentions to need the work done showed that he was willing to be bound by the contract although unwillingly. Therefore, JDPi has no any other option than to pay for the agreed extra £100,000 price and Capgemini UK PLC should legally enforce JDPi to pay.

Part 3: Main Legal issues in Supply Chain Relationships.

3. Outsourcing strategy. The company can opt to have an external firm that with the needed IT System to perform the required work on behalf of JDPi. The substitution will set an agreement on the scope of work and the manner in which the work will be done as well as the service fee to be paid thus setting the terms of the contract.

4. Insourcing strategy. Under this strategy, JDPi can decide to develop the software internally. The company can initiate its Research and Development team, if skilled and capable, to engage into a detailed research to upgrade the existing operating system which will eventually see the company have the required IT System. Under such strategy, the company will have developed the system without entering into any contractual agreement with external suppliers, (Dekker, et al, 2013). Thus legal implication with external parties will not be binding, but only the normal company contractual employee agreements.

Taylor, T. A., & Plambeck, E. L. (2007). Supply chain relationships and contracts: The impact of repeated interaction on capacity investment and procurement. Management science, 53(10), 1577-1593.

Dekker, H. C., Sakaguchi, J., & Kawai, T. (2013). Beyond the contract: Managing risk in supply chain relations. Management Accounting Research, 24(2), 122-139.

De Araújo, M. C. B., Alencar, L. H., & de Miranda Mota, C. M. (2017). Project procurement management: A structured literature review. International Journal of Project Management, 35(3), 353-377.

Hay, C. R. M. (2013). Purchasing factor concentrates in the 21st century through competitive tendering. Haemophilia, 19(5), 660-667.