At my previous company which was Highland Coffee, besides the major products which are

Robusta and Arabica coffee, other components for other drinks were bought directly from
several suppliers.

 Canned Produce Company A

o Estimated Share of Purchase: 19%
 Canned Produce Company B
o Estimated Share of Purchase: 9%
 F&B company A
o Estimated Share of Purchase: 12%
 Dairy company
o Estimated Share of Purchase: 32%
 Local ice-maker companies
o Purchase percentage: 4%
 F&B company B
o Estimated Share of Purchase: 2%
 F&B company C
o Estimated Share of Purchase: 2%
 Teas Brand
o Estimated Share of Purchase: 5%
 F&B company D
o Estimated Share of Purchase: 5%
 Bakery
o Purchase percentage: 11%

My demensions based on the risks and probilities of the suppliers:

Dimensions:

1. Risks considered by distances, natural and economic catastrophes, and suppliers'

reputations:

o High

o Low

2. Probilities considered by how much each components bought from these suppliers gain:

o High

o Low

Categories:
1. Strategic suppliers: high profibility, high risk
2. Bottleneck suppliers: low profibility, high risk
3. Leverage suppliers: high profitbility, low risk
4. Non-critical suppliers: low profibility, high risk
Assignment of Categories:
 Strategic suppliers: Local ice-maker companies, Teas Brand
 Bottle-neck suppliers: Canned Produce Company B, F&B company D, and F&B
company C
  Leverage suppliers: F&B company A, Dairy company, Bakery, and Canned Produce
Company A.
 Non-critical suppliers: F&B company B

1. Strategic suppliers:
 Local ice-maker companies
o Unique value received: Instant deliveries when the forecasting failed.
o Unique value provided: Introductions for a large chain of coffee shops in
cities.
 Teas Brand:
o Unique value received: Variety & quality products & Cost saving via mass
purchasement.
o Unique value provided: Continuous large-volume orders
2. Bottle-neck suppliers:
 Canned Produce Company B
o Unique value received: High quality products in a specific type of food
component.
o Unique value provided: Valid comfirmation for widening its market share.
 F&B company C
o Unique value received: Special formular of the component for our brand
o Unique value provided: Marketing support
 F&B company D
o Unique value received: Bridging our company to Philipines market
o Unique value provided: Budget support
3. Leverage suppliers:
 F&B company A:
o Unique value received: Collaborating for seasonal drinks
o Unique value provided: Longtime contraction with massive order
 Dairy company
o Unique value received: as 70% as market cost
o Unique value provided: Generating new drink formulars for their new
products if being required
 Bakery
o Unique value received: High standard and quality cakes
o Unique value provided: Massive order everyday
 Canned Produce Company A
o Unique value received: High quality products in wide canned produces.
o Unique value provided: Sharing some parts of the logistic system such as
warehouses and transportating.
4. Non-critical suppliers:
 F&B company B
o Unique value received: Updated versions if we require
o Unique value provided: Adding their products to our merchandise

I am making an action plan to streamline Non-dairy cream

1. Identify goods or services needed: Determine the goods: Non-dairy cream and the
quantity: 2100 cartons.
2. Evaluate and select a supplier: There are 3 big Vietnamese dairy companies but TH
true milk is the most suitable for making beverage.
 3. Negotiate the terms of the trading agreement with selected supplier: Negotiate the
terms of the agreement with the TH true milk, including price, delivery time, payment
terms, and other relevant factors.
4. Finalize the purchase order: Create a purchase order that includes all the relevant
details of the transaction, such as the quantity, price, delivery date, and payment terms.
5. Receive invoice and process payment: Receive the invoice from the supplier and
process the payment according to the agreed-upon terms.
6. Delivery and audit of the order: Receive the goods or services from the supplier and
audit them to ensure that they meet the organization’s requirements.
7. Maintain accurate record of invoices: Keep accurate records of all invoices and
transactions for future reference.

Step 1: Identify the internal needs

To make good and variaty productions of drinks in a Coffee shop chain, we need a lot of
outsourcing food components. We decided to devide them into these categories: Dairy
productions, Drink toppings, Drink powders, Syrups, Food while using drinks, and Pure
Teas.
Step 2: Evaluate and select suppliers
In the F&B producing, there are numourous of company who are ready to collab with us inside
or outside the territories. We prioritize the suppliers that apply these criteria respectively:
domestic orinated, quality, and price. It is because we want our products will be known as a
high quality productions and some further request. So we decided to choose these suppliers for
F&B components that we need:
 Dairy productions: Daily company
 Drink toppings: Canned Produce Company A, Canned Company B
 Drink Powders: F&B Company A, F&B Company D
 Syrups: F&B Company B, F&B Company C
 Food while using drinks: Bakery
 Tea: Teas brand
Step 3: Negotiate contracts with the selected vendors.
For most of suppliers, the Company’s contracts team want to certify the payment terms,
warranties, any indemnification clauses and other legal aspects. If there are any implementation
services as part of the contract, we want to ensure timelines, delivery schedules, scope of work
etc. are well-understood upfront.
In addition, for each suppliers, we have special agreements with them such as providing
Marketing support with F&B Company C, sharing some parts of the logistic system such as
warehouses and transportating with Canned Produce Company A while reciving the bridege to
Philipines market from F&B company D.
Step 4: Approve internal purchase requisitions.
For that, our brand used a purchase requisitions (PR). The PR includes pertinent information
such as terms and prices, a list of required items, supplier and buyer details, and more. And the
Finnance department soon approved the purchase because of the reasonable and carefully
planned requirement.
Step 5: Release purchase orders.
Following that, purchase orders (POs) were produced and issued by Highland Coffee's finance
department. They forwarded purchase orders (POs) to the selected vendors, together with full
terms and conditions, delivery schedules, and PO numbers.
Step 6: Receive invoices.
A list of the ordered items, their pricing, and the deadlines for payment are included in the
invoices that the suppliers submit. Due to expiration, each supply has a varied deadline. As a
result, the deadline varies for each supplier. I.e the Dairy Company delivers the invoice every 7
days before the shipment.
Step 7: Receive and audit deliveries.
In compliance with the conditions of our contract, the suppliers deliver the ordered goods and
services. For our Levarage and Non-critical suppliers, our audit team receive small amounts of
defects while the others are about 5% of delivery times. And it is obvious that we require
replacements of these defects less than 12 hours.
Step 8: Complete payments.
Once the order has been verified, our company finance department will send payment according
to the terms specified in the contract of 15 days.
Step 9: Maintain proper records.
Finally, in order to facilitate any future audits, we save all records—from the initial request to
invoices—in one convenient location. This data's analysis aids in monitoring and improving
spend control.