ENG7146 A case study analysis of JDPi Automotive manufacturer

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Coursework 1 Co

Assignment Title:- A case study analysis of JDPi Automotive manufacturer Module Co-coordinator:-JAHANGIR AKHTAR Student Number:- 20127403 Student Name:- Habiba Nur Module Title:-Procurement and Contract Law Module Code:-ENG7146 Due Date:- 17/05/2021

Table of Contents Question 1 Benefits of JDPi: Challenges faced by Procurement and Supply Chain Manager: Overcome the challenges: Other strategies to minimize those challenges:

Question # 2 Question # 3

Rights of the JDPi: The obligation of JDPi:

Question # 4 Study Scenario: Advise to Cap Gemini UK PLC: Question # 5 Sources approach by JDPi: Legal aspects:

References

Question 1 JDPi is among the leading automotive manufacturer in the market utilizing the IT system for the last five years concerning invoices structures. Recently the company did incur a loss for the valuable data because of the systematic failures which did lead to staff demotivation. Hence the company did decide to replace the existing IT system with an upgraded system unit. For the same purpose, the company did ask the existing supplier Cap Gemini UK PLC to deliver the feasibility to system up-gradation by keeping in view improvement in terms of efficiency, speedy response time, and integration for information sharing internally and externally. (Ewan, 2005)

Benefits of JDPi: Among the major benefits to system up-gradation within their IT structure, JDPi is focusing to gain benefits by using a competitive purchasing approach on internet auction by IT in terms of creation of the competitive environment along with the pricing within the suppliers increase the maximum effectivity and efficiency because of the competitive tendering approach. In addition to that the truly fair and transparent criteria in terms of selection of the most suitable and most eligible supplier can also be achieved for the tender, ultimately will eliminate the trend of monopoly within the same spectrum. Internet-auction system will also become a major source to save time for the stakeholders of JDPi. (Randy. E Bernett, 2003)

Challenges faced by Procurement and Supply Chain Manager: As per the study, the challenges did face by JDPi to competitive tendering in terms of IT system replacement and up-gradation. As the head of the procurement department of JDPi, Ben Clegg was in favor of competitive tendering to create a healthy competitive environment among the suppliers as per his statements. On the other hand, the head of the Human Resource Department of JDPi was in favor of favoritism upon a deal with an existing supplier of the company Cap Gemini UK PLC instead of open competitive tendering to the IT system in the company.

Overcome the challenges: As per the study, the following are the below-mentioned strategies to be adopted by JDPi to challenges faced by the company.

Outsourcing Strategy: Outsourcing is considered as the maximum cost advantage strategy, in addition to that beneficial in terms of positive competition, flexible operations, and innovations to the current competitive global economy within the commercial sector. The decisions of outsourcing taken by the organization depend upon the ability of the marketplace of the available provider. As per the challenges faced by JDPi outsourcing is the best strategy that needs to adopt by the company to the positive competition among the suppliers along with that the advantages upon costeffectiveness, efficiency, innovation, and flexible operations can also able to attain by the JDPi. (Phillips, 2018).

Global sourcing strategies: Other than that establishing global sourcing strategies including decision making by managent and decision making by employee by the company is another solution to overcome the challenges. As both of the approaches, the company can use as for its value chain concept under the sourcing microscope either by integrating the business strategic plan with its sourcing plan (top-down approach) or to identify the least areas of a business to the contribution in competitive advantage (bottom-up approach). (Janet Dine, 2013) Optimizing outsourcing opportunities: In addition to that, optimizing outsourcing opportunities by the selection of the most suitable entity by the company within the market with an evidential success record is another solution for the JDPi to overcome the challenges of the company.

Other strategies to minimize those challenges: Apart from the above-mentioned strategies, the below mention strategies are also effective to minimize the challenges by the JDPi. Creating leading successful teams: Creating leading successful teams by the company concerning Strategy, Assessment and Implementation is another successful strategic approach adopted by the company to overcome the challenges. The three above-mentioned factors can ultimately deliver the maximum positive impacts for the best outsourcing proposals necessary for the company.

Engaging the MarketPlace: Outsourcing can only be fruitful if the high-quality service provider is utilizing the best marketplace. So engaging the marketplace in the best possible manner is also among the major components to overcome the challenges faced by the company.

Building the business case: Building the business case to cost objectivity, expected benefits, and focus on the key issues within the company can also become effective to the challenges. (Mckendrick, 2019)

Although commercial organizations face challenges within the regular operation of their business among the various segments of the company. As per the case, JDPi did also face the challenges, yet by formulating, adopting, and implementing the suitable policies and strategies within the right time, ultimately can able to overcome the challenges along with the benefits generated by the company. (Gustavo Piga Steen, 2013)

Question # 2 Based upon the study as per the terms and conditions mentioned in the contract by law JDPi is governing the contract as per the clauses of the contract.

Terms governing the Contract:

The following are the major contract clauses upon which it can be clearly stated and estimated that JDPi is governing the contract according to the law. (Larson, 2016)

Clause no 13 of the contract clearly stated that;

''The customer may get remedy any default or re-perform any non-conforming Services itself or get them remedied or re-performed by any third party on behalf, and in either case, the supplier will be paid reasonable money so incurred by the Customer'' In addition to that, the modified clause number 6 of the contract states that;

''The contract charges for the service is an estimates for the extent of work is involved for the terms of the contract.''

So by keeping in view the above two mentioned clauses among the other major clauses in favor of JDPi with to contract, it can be cleared that the JDPi have a full grip on the contract as per law, and JDPi as a customer is governing the contract by all means with IT system as a customer. As per the same contract it can be clearly stated that by law JDPi is delivering the contract exactly according to their own favorable and decide terms and conditions and the supplier Cap Gemini UK PLC is delivering the services to its customer JDPi as per the majority terms and conditions in favor to the service delivery in IT system buy Cap Gemini UK PLC as a supplier. (Harson, 2016).

Question # 3 Legal right and obligation is the law structure that shows the right duties and responsibilities towards the party as per the contract to deliver their required tasks, roles duties, and responsibilities. In case of any negligence by any of the party towards the contract can be dealt with under the law. (Aaron, 2016)

As per the above-mentioned contract, the following are the major rights/obligations of the JDPi. Rights of the JDPi: 

The Supplier will take due care to ensure that, in the performance of the work, which is the objective of this Contract, it should not interfere with the operations of their Customer, employees, or other contractor engaged by the Customer.



The Services include advice, fault analysis, inspection, modification or replacement. other works that is necessary to keep the System in good running order.



The Customer may be paid either any default or re-perform any nonconforming Services itself or re-performed by a third party on its behalf, and

in either case, the Supplier will pay the reasonable costs that incurred by the Customer.

The obligation of JDPi: The following are the major Obligations:

Customer is responsible to ensured that the necessary operational and environmental conditions are maintaining when use of the System.



The Customer agrees to flow with all the Supplier's instructions concerning the usage, modification, control, and testing of the System. Also ensuring that the Customer and employees are adequately trained that they use of can use the System correctly.



The Customer will be provided correct information, licensing agreements and facilities, as the Supplier can carry out the Services

As per above-mentioned clauses in the contract, it can be clearly stated that JDPi has the right to demand the maximum reasonable care from the supplier Cap Gemini UK PLC with the execution of a task as per the contract. In addition to that, the operations of the JDPi in terms of its employees can never be affected at all because of the supplier Cap Gemini UK PLC. Other than that JDPi also reserves the right to, fault analysis inspection, modifications, and replacement which are considered as complementary orders to maintain the IT system within their organizational structure. Along with the additional cost paid by the JDPi concerning service, an operation can also be charged from the supplier as per the legal framework of the contract. (Evan, 2016)

As per the contract, the obligations of JDPi include delivering necessary information and suitable environmental condition to the supplier so that can able to perform the operational task by the supplier Cap Gemini UK PLC. Other than that this is also complimentary concerning JDPi to follow all reasonable instructions in terms of IT system usage along with the modifications and control and to gain the required training to utilize the IT system delivered by the supplier. Finally, the provision of the necessary information including the license agreement in the IT system obligatory upon the JDPi towards the supplier Cap Gemini UK PLC so that can able to deliver the service within a maximum effective and efficient manner. (Patricia. E, 2014).

As per the study it can be clearly stated from the above-mentioned clauses showed the rights/obligations of JDPi based upon the requirements from the supplier Cap Gemini UK PLC concerning obligations of the JDPi based upon the requirements required by Cap Gemini UK PLC, the supplier from the customer JDPi. So by delivering mutual understanding cooperation and collaboration between both supplier and customer ultimately can able to achieve maximum effectiveness and efficiency within the operational task at both ends.

Question # 4 Today in the Global Business organizational structures are delivering the business, not at the local level but the global level. For that reason, to meet the commitments, there is a complete legal framework for the commercial sector in terms of a contract so that can able to stick with their commitments and to fulfill the contractual agreement without any hurdle. In case of any breach of contract by any end can be deal with by the legal hands. The core purpose is that the victim is eligible to recover all of his incurred loss due to the breach of contract agreement and the party responsible to breach the agreement face the consequences of heavy penalty, fines even imprisonment depends upon the level of contract breach. (Mellor, 2019).

Study Scenario: Based on the study as per the scenario mentioned the six months’ contract between JDPi as a customer and Cap Gemini UK PLC as a supplier concerning the IT system. In the half of the contract's duration, a dispute did arise between both parties concerning the additional payment of £100,000.

Although initially JDPi reluctantly did verbally accept to pay the additional cost since after the service completion refused to pay the additional £100,000 to the Cap Gemini UK PLC.

Advise to Cap Gemini UK PLC: As per the law within the Legal Framework Order Cap Gemini UK PLC has no right to claim the additional cost. As per the law, the modified clause no 6 of the contract between JDPi (customer)

and Cap Gemini UK PLC (supplier) stated that the contractor will charge for the service i s an estimate for the extent of work involved for the terms of the contract. As per this scenario Cap, Gemini UK PLC did refuse to work without the additional cost and was insisting because of the extended date of the work according to the new requirement as the new requirement can never be done within the deadline. As per the legal Framework, JDPi is not eligible or entitled to pay any additional cost to the supplier company Cap Gemini UK PLC unless and until the mutual acceptance to the payment of additional £100,00 declared by both parties (supplier and customer) within the contract which is the major requirement of the legal aspect of the contract in terms of offer and acceptance, otherwise upon the same above mentioned scenario and contract, Cap Gemini UK PLC has no right to claim for the additional cost of £100,000 because of the verbal commitment made by the customer JDPi to execute the job by the supplier and not effect upon the efficiency of the project. (Christopher, 2016).

As per the scenario and contract mentioned in the study, it can be clearly stated and strongly advised to the Cap Gemini UK PLC that not to deliver any sort of claim upon JDPi concerning the payment additional payment of £100,000. According to the law Cap, Gemini UK PLC has no right to claim for the additional payment ultimately will lose its goodwill and reputation within the market because of the baseless claim as the modified clause number 6 of the contract favor JDPi within the same spectrum.

Question # 5 Sourcing approaches can be determined as proper allocation of resources in terms of detail and depth analysis concerning the capability and capacities and to identify the deficiencies ultimately can able to fix the issues within the operational structure of the organizational IT system. In addition to that the core purpose of sourcing approaches in IT systems is to generate the maximum effectiveness and efficiency within the IT structure of an organization ultimately can able to achieve the required goals and objectives within the deadline and can able to achieve smart work concerning cost-effectiveness, maximum efficiency and proper allocation of resources by all means within all segments of the IT system in the organization. (Turner, 2013)

Sources approach by JDPi:

As per the study, the following are the sources approaches that might be used by JDPi to most effectively source IT systems.

Creating and leading successful teams: Creating a leading successful team is among the major sourcing approaches use by JDPi to the more effectively sourcing system. This approach is based upon strategy assessment and implementation as 83 e major factors ultimately utilized to cover the deficiencies and loopholes and hold outsourcing. For the same reason, different teams have been designed by the organization to investigate the outsourcing proposals and can choose the best proposal concerning outsourcing.

Hence the creation adoption and implementation of a successful team ultimately can able to deliver the maximum positive change within the organization and leads towards success as an organization as a whole. (Poole, Case Book on Contract Law, 2016)

Engage in the marketplace: Other than that engaging the marketplace is another outsourcing approach more effectively used by the JDPi in the IT system. The marketplace with the maximum service quality provider in the business can able to generate the maximum positive impact upon the business to IT system effectiveness, efficiency, transparency, and accuracy and can able to generate the smart work within the organization structure.

Building the business case: Another major approach that can be used by JDPi within the IT system is building the business case that deals with the maximum cost objectivity and can be taken as a cost-effective approach within the same spectrum to maintain the desired results as per the organizational volume structure and business requirement.

Legal aspects: The commercial organizations are delivering their operations and activities upon the legal Framework order. So to avoid any sort of negligence, the legal cover is mandatory in the commercial world by all means. JDPi considers legal aspects in these supply chain relationships in a way that there should be legal contracts and agreements between all the stakeholders and parties to address the above-mentioned supply chain relationships. The clauses of the contract

should be clear, transparent, and based upon the legal framework. Other than that JDPi should also need to focus on the contract fulfillment agreements and to stick the commitments as per the legal contract. In addition to that, there should be no ambiguity in this regard for the deliverance of job operational activity by any of the stakeholder so that can able to deliver their services at the top of excellence level without any issue. (Steward, 2017) As per the study sourcing approaches are very important and elementary for the JDPi which ultimately need to utilize by JDPi more effectively in the IT system to maximize the capacity and capability within the operational excellence. So the above-mentioned sourcing approach along with the consideration of legal aspects by the company can able to generate the maximum operational excellence in the business in addition to that can able to maintain the long run working relationship within the supply chain. Hence the desired goals and objectives can able to achieve by the organization.

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