A Look Into James Hardie's Purchasing System

3559 words - 14 pages

I. COMPANY BACKGROUNDJames Hardie InternationalIn the mid 1980s, James Hardie pioneered the development of fiber cement technology, and began designing and manufacturing a wide range of fiber cement building products that made use of the benefits that came from the product's durability, versatility and strength.Fiber cement is used in the exterior and interior of a building, from exterior cladding and internal lining, to fencing, bracing and decorative finishes.Using the technical and manufacturing expertise it developed in Australia, James Hardie expanded its operations to become a world-leading, specialized, high technology manufacturer of a wide range of fiber cement building materials.The company has become a leading international building materials company and a global leader in fiber cement, one of the world's fastest growing building products.Today, James Hardie is purely a cement-cement business. It operates in markets around the world, with manufacturing operations in the United States, Australia, New Zealand, the Philippines and Chile. The businesses employ over 2,500 people who generate revenue of more than AUS$1.5 billion a year.James Hardie Philippines, Inc. (JHPI)James Hardie Philippines, Inc. (JHPI) provides durable building solutions to meet the Filipino's need for better, longer-lasting buildings and homes. One of its most famous products is the HardiFlex.Established here in 1996 with the primary mission to market and manufacture high quality fiber cement products for the local market and the region. In 1998, a world-class fiber cement plant was established in Cabuyao, Laguna making James Hardie one of the biggest Australian investments in the country.James Hardie Philippines Inc. leads the development of asbestos free fiber cement technology here and abroad, combining this experience with carefully tested materials and advanced manufacturing processes.II. CASE STUDYA. Case BackgroundFor the purpose of this study, I will look into James Hardie Philippines, Inc.'s purchasing management. Since the company has specific purchasing policies and guidelines for each of its business processes (internal and external requirements), I have decided to concentrate mainly on its Customer Delivery Suppliers.B. Presentation of Findings (JHPI's Purchasing Management for its Customer Deliveries)(1) Vendor EvaluationThe specific process used in this case study is that of Customer Delivery which is an activity that encompasses the transfer of ordered finished goods from JHPI's Cabuyao plant to JHPI customers.Accordingly, JHPI classifies its suppliers into three:Accredited Supplier - Entry level.- New supplier who passed the minimum requirements for accreditation.- Supplier who has been engaged in trucking services for atleast two (2) years, but not necessarily with JHPI.Preferred Supplier - Meets all performance targets set by JHPI's Distribution Team for the past two (2) years.- Has not violated the contract, or any...

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