Assignment 1

Your topic: Assignment

Your topic's description: The procurement function that Marathon Foods perform while importing or
sourcing food extensive and materials from Greece

Your desired style of citation: Harvard Referencing

Your educational level: Guaranteed First Class

Refrencing Style: Harvard Referencing

Number of page: 12

Words: 3000

Assignment

[Author Name]

[Institute Name]
 Assignment 2

Abstract

Marathon Foods is amongst the best UK based companies that sources food materials

from Greece. This paper has explained the procurement function that Marathon Foods

perform while importing or sourcing food extensive and materials from Greece. Moreover,

the paper has explained that how effectively Marathon manages the network of international

suppliers from UK to Greece. In that way, the paper has also focused on the sourcing risks

and other risks related to procurement function.

 Assignment 3

Contents

Abstract ................................................................................................................................................... 2
Introduction ............................................................................................................................................. 4
Discussion ............................................................................................................................................... 4
Procurement management ....................................................................................................................... 4
Project risk management ......................................................................................................................... 4
Company description .............................................................................................................................. 5
Dangers and other risks by UK with Greece........................................................................................... 6
Short term risks ....................................................................................................................................... 6
Currency risks ......................................................................................................................................... 7
Ways through which procurement function can manage a supplier network ......................................... 7
Project risk and procurement management ............................................................................................. 9
Examples from Marathon Foods ........................................................................................................... 11
Case study examples related to procurement function .......................................................................... 12
Conclusion ............................................................................................................................................ 15
 Assignment 4

Assignment

Introduction

The main objective of the paper is to analyse a UK business that sources food

materials extensively from Greece. Therefore, the chosen UK based company that sources

food extensive food materials is “Marathon Foods.” In this way, the paper will explain the

dangers of economic and other risks that arise in between UK and Greece relationship.

However, the paper will mainly discuss the procurement function that can manage the

network of international vendors and suppliers. Thus, the paper will give some examples that

how company is managing the sourcing risks and other risks related to procurement function.

Discussion

Procurement management

Sourcing is the process of identifying, evaluating, negotiating and optimal selection

of goods and services to better support business objectives. Sourcing is generally seen as the

strategic part of the contract, since it is the primary mechanism used by procurement

department to achieve savings. This ability to evaluate, identify, prioritise and implement the

right opportunities is as important to you and your procurement team (Howard and Serpell,

2012).

Procurement management is one of the most important tasks in the supply chain. A

company can improve its profit margins following a policy of adequate supply. The success

of a company depends directly on good management on purchases (Howard and Serpell,

2012).

Project risk management

The project risk management involves the processes, which is linked with conducting

management planning, recognising, and analysis, response planning risks that monitors and

controls the project. However, the main objective of the project risk management is to
 Assignment 5

enhance the probability that has positive impacts of events and decrease the probability,

which holds negative impacts for the project (Caron, 2013).

Procurement function manages network of vendors

SCM’s effective and efficient processes show professionalism, compliance,

reliability, fairness, and transparency to organisation’s constituencies as members of local

authorities, recipients, and general public. The need for a better relationship between

suppliers and customers is essential. Since then it has sought to design mechanisms to

improve the relationship between both parties with mutual benefit, which will result in

increased quality, decreased cost, reduced delivery time, and secure business for both parties

(Howard and Serpell, 2012).

It is essential to develop supplier-customer relationship that offers a single source,

hold agreements with one supplier. The risk is to become captive to it. In the JIT (just in

time) system, the ratio has high value because of the accuracy of the operation depends on the

ability of the provider of customer production. This system produces a low cost of storage

and improved forecasts of purchase (Howard and Serpell, 2012).

Company description

The chosen company that is going to be discussed as a case in this paper is Marathon

Foods Ltd. It was established in 1968 as a family run business that imports high quality of

different foods and drinks from Greece, Cyprus, and other Mediterranean countries.

Therefore, the company has friendly and cooperative values with modern distribution and

packaging process that supply to further different businesses across UK. The company offers

different food products like; Kean drinks, Trata fish products, pulses and beans, dips, jams,

sweets, honey, Cretan extra virgin olive oil, Helios pasta, meat, dairy halloumi, Feta, and

wines & spirits (Marathon, 2015).

 Assignment 6

Dangers and other risks by UK with Greece

Greece is not assumed as a major trading partner with the UK. Around 1% of the

UK's aggregate food and beverage exports are sent to Greece and less than 1% of the UK's

food and beverage imports are from Greece. Accordingly, disturbance to trade would not

have any major outcome to the food chain as a whole. In 2014, absolute UK food and

beverage imports from Greece added up to £236 million, which is almost less than 1% of

UK's total food and drink or beverage imports. Generally 50% of what UK import from

Greece is organic products, vegetables and nuts (processed and unprocessed), a quarter is

dairy items; mostly cheese and the rest is a heterogeneous blend of items. UK’s exports of

foods and drink to Greece are even lower. The UK sent out £118 million worth of foods and

drinks products to Greece in 2014, generally 50% of which is represented alcoholic spirit

drinks (Incles, 2015).

Short term risks

In the short-term, the prime dangers to the UK have the liquidity of Greek

organisations (i.e. getting paid) and which money will be utilised to complete exchanges

(Incles, 2015).

Liquidity
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Liquidity is a noteworthy concern. Greek subjects are just ready to pull back €60

every day and the capital controls forced by the government enormously limits the flow of

capital within the economy and keeps it from leaving the nation (Incles, 2015).

Currency risks

A powerless Euro, in respect to the sterling, makes transitory preferences for

European exporters. This is not particular to Greece, but rather for all nations in the Euro. A

Greek exit from the Euro would see bring the Drachma once more into dissemination, which,

given the state of Greece's funds, be altogether debased in respect to the Euro. This could

conceivably advantage UK buyers on the grounds that it would empower them to buy food

and beverage items, for example, cheese, from Greece at a lower cost than it could from other

European nations in the Euro. Atypically, a Greek way out could have a gainful short-term

impact on a help to Greek exports, profiting both purchasers and suppliers. In any case, over

the long run UK importers would need to oversee greater currency of risks of executing in

Drachma, as opposed to Euro (Incles, 2015).

Ways through which procurement function can manage a supplier network

Around the globe and over all divisions, organisations are encountering a phenomenal

pace of progress. Thus, organisations are quickly re-assessing their working models and

market procedures to withstand these business sector powers, as well as gain by them.

Evidently, Procurement has an essential role to play in offering their organisations with

achieving their targets and get ready for the uncertainty ahead. To some extent, this will

oblige procurement to concentrate on driving costs out of the business. Be that as it may, the

open door additionally exists for the function to add esteem in a considerably more vital way

(Ross, 2013).

Supply networks are essentially a complex and regularly broadened web of

interconnected nodes and links. The nodes emphasise on the entities or offices, for example,
 Assignment 8

suppliers, distributors, production lines, and distribution centres. The links are the methods by

which the nodes are joined. These links may be physical streams, informational flow, or

financial flows. The powerlessness of a supply network is dictated by the risk of failure of

these nodes and links (Ross, 2013).

It is noted that supplier relationship management is assumed as a long-term system

that conveys benefits as it is implemented. This aspect needs careful planning concentrated

on personal learning of supply market and internal organisation that has to cooperate with

efficiency and effectiveness. Significant to the capacity that facilitates various procurement

processes like strategic category management, supply base management and supplier

performance assessment. It is the basic coordination of different exercises, which structures

framework that highlights different level of performance, which is not attainable by means of

different strategies. It is limited to such aspects that usually takes time for delivery. However,

the search for quick outcome is an innocent one that never increases a long-term sustainable

performance (Chopra and Sodhi, 2012).

Another aspect of managing global networking of suppliers comes along with the

contract management as well. The contract management is an important management aspect

relationship with suppliers and ensures that products and services are contracted time;

likewise they correspond to the request. Contract Management is part of the area of

knowledge called Procurement Management PMBOK, a global standard for Project

Management and Project. Contract management is not limited to the initial phase of

negotiation and signing. Proper management and continuous review of the initial to make it

according to the project that is being developed contract is necessary at all stages that make

up the life cycle of a project (Chopra and Sodhi, 2012).

Negotiating a contract is only part of the strategic sourcing process. Companies also

need to ensure they are managing the agreement throughout its lifespan. Use of appropriate
 Assignment 9

measures to monitor and monitoring tools contracts affect a company in a positive way, and

will make a big difference in the management of relationships with suppliers and expenditure

analysis (Wisner et al., 2015).

However, changes and new opportunities for improvement make the initial

specifications have to be revised and adapted. Also, always presents the appearance of

conflicts between the parties, and each payment processes and costs must be properly

managed if it is to be achieved to reach the objectives (Wisner et al., 2015).

In this way, it is essential to evaluate the performance of suppliers and vendors. Thus,

adoption of management of supplier performance has become essential. It is the process used

to track and improve supplier performance by measuring key performance indicators and

enable collaboration with stakeholders and internal suppliers. Leading companies in this

competition are much more likely to develop initiatives of providers that focus on innovation

and / or improved performance. They are also more likely to have a process of continuous

performance management vendors have standardised and visibility of supplier performance

issues and supply risk. The domain of managing supplier performance is one of many key

steps to excel in the area of procurement (Kerzne, 2013).

Project risk and procurement management

Risk is a ubiquitous variable in the 21st century companies. In the current situation,

procurement departments must be able to design systems for procurement and supply chain

nimble, able to respond to changes typical of an increasingly dynamic market and implement

the necessary measures to generate savings and risk mitigation actions (Kerzner, 2013).

In this environment, procurement professionals have become indispensable figures in the

risk management of the company, specifically those arising from contracts with third parties.

Among the major risks that companies face today, there are some highlights (Pryke and

Smyth, 2012);
 Assignment 10

• Strategic: they are linked to the high level of compliance with the risk strategy of the

company: Uncertainty in supply sources, political sphere of the country, etc.

• Operational: affect the daily operations of the company supplies, strikes, price increases,

etc.

• Financial: Volatility of raw materials, foreign exchange risk, impact on Marathon Foods.

• Reputational: Loss of leadership, impact on the public image of the company, etc.

Obtaining ethical quality certifications, compliance with environmental requirements, legal

(PPD) and (RSC, Global Compact, etc.):

• Compliance: for a correct strategy, it will be necessary to identify those potential risks

and define the quantitative and qualitative KPIs to identify any impacts on management

with suppliers and have tools and systems that allow a correct analysis of Big Data.

Stages of a project risk management

• Identify risks

Identification of risks is assumed as the process through which risks may affect the project,

which document the characteristics that are determined.

• Perform qualitative risk analysis

This kind of risk analysis is a process that prioritises risks for more analysis or action by

evaluating and combing the probability of occurrence that impacts the risks.

• Perform quantitative risk analysis.

The quantitative risk analysis is the process of statistically analysis, which effect recognised

risks with overall project objectives. It is applied to the priority risks by performing risk

analysis that ha potential and essential impact on competing demands of project.

• Planning risk response

This process holds options and actions, which are developed to increase the opportunities and

also decreases the threats to project objectives.

 Assignment 11

• Monitor and control risks.

It is the process by which plans risk responses are executed, as the risks recognised are

tracked since the residual risks are assessed. However, new risks are identified and

effectiveness of process is assessed against the risks throughout the project that is

procurement process here.

Examples from Marathon Foods

Marathon Food's product range is sourced direct from the plantations, fields and

homesteads of the Mediterranean. Just the most noteworthy quality pulses, crunchiest nuts,

zestiest olives and finest cheeses make it into the range. Since company work

straightforwardly with homesteads and agriculturists, as with whom company has developed

a relationship or an association with more than 25 years. In this way, the company deliver

great value for money. The Anthos brand is presently understood for offering the finest Greek

and Cypriot as it is produced by the Mediterranean. The range is growing year by year and

for that reason, the company is continually attempting their best to give the customers a wide

range of items with prime value or quality (Marathon, 2015).

In connection with the procurement process company can emphasise that innovation

involves not only the generation of new products and services but also to the way of doing

things with new and better solutions. The shopping area can contribute to the innovation

process in various ways, for example by limiting access providers lacking the capabilities of

innovation, defining the contractual obligation to provide a minimum number of innovations

per year, serving as a link between strategic suppliers and users defining key business

previously expected results: development of new technologies or new products, joint

marketing efforts, etc., participating in the evaluation of proposals by suppliers innovations,

negotiating within the company upgrades the specifications suggested by suppliers by

implementing strategies that lead to a significant reduction in the level of stock without
 Assignment 12

prejudice to the level of service (releasing financial resources for productive investments),

using electronic trading systems that automate operational activities of the Procurement team,

etc. (Marathon, 2015).

Case study examples related to procurement function

A channel is a channel or medium. Eliminates the geographical separation between

buyers and sellers, is a component of the mixture of marketing. Marathon Foods decides to

buy and source material that includes a procurement function. The procurement management

takes into account many factors, such as inventory costs and transportation, supply

availability, effectiveness and quality deliveries from suppliers. The focus of shopping is

attained by managing the source. The management is concerned with developing source new

reliable suppliers. The product can be a high-tech items, custom made or specialised for

which there are, if any, few suppliers. Management must be able to search suitable suppliers,

develop their capacity to produce and negotiate acceptable relationships. A supply

management approach suggests a long-term concern about the availability of shopping

critically with high price; reliable future supplies are critical to the success of the company.

This approach is necessary if the dollar value of purchases or cost fluctuations are important.

The end of this approach is for the company to pursue the backward integration for ensure

future supplies (Meredith and Mantel, 2011).

Anthos pulses and beans, Feta cheese, Kean fruits and drinks, D. Solini & Co. for

black olives, MOSCHOFILERO white wine, Trata fish range, and so many suppliers are

working from Greek for Marathon Foods that imports it from Greece for giving to other

retailers (Marathon, 2015).

Marathon Food sees the supplier as an opponent, which is counterproductive. Close

and long-term relationships of few suppliers are a better way. A good relationship with the

supplier is one in which it is committed for helping the buyer to improve their product and
 Assignment 13

win orders. Providers they can be a source of ideas for new technology, materials and

processes. Shopping is one way to convey this information to the appropriate people in the

organisation. In addition, good relationships include those in which the buyer is committed to

maintaining provider informed of possible changes in the product and in the production

schedule (Marathon, 2015).

The procurement function and suppliers must develop mutually beneficial relations.

Purchases follow a three-step process (Meredith and Mantel, 2011):

1. Evaluation of supplier

It involves finding potential suppliers and determine the probability of they become good

suppliers. This phase requires the development of criteria rating. The criteria and the weights

depend on the needs of the organisation. The selection of competent suppliers is critical,

because otherwise all other efforts Purchase wasted.

2. Development of supplier purchases

It ensures that the supplier has an appreciation of the quality requirements, engineering

changes, programs and deliveries, the system payments and procurement policies. Supplier

development may include various aspects, from training to help in engineering and

production, and formats for the electronic transfer of information. Procurement policies may

include aspects such as percentage of business done with any supplier or minority businesses.

3. Negotiations

The trading strategies are classified into the following types;

a. Price model based on cost

It requires the provider to open its books to the buyer. He contracted price is based on

labour time and materials or fixed cost, with a clause increased to accommodate changes in

prices.

b. Pricing model based on the market

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The price is based on a price or index published.

c. Competitive bidding

It is appropriate in cases where suppliers are unwilling to discuss costs or where there are

no perfect markets. It requires people to be shopping several potential suppliers of the

product and budgets of each. The main disadvantage is hindering the development of long-

term relationships between buyer and supplier. The tender can determine the competitive cost

effectively. But it can also make it difficult to and communication efficiency.

d. Combine two or more techniques

Supplier and buyer must agree to revise certain cost data, accept some form of market

data for the prices of raw materials, or agree that the supplier must remain competitive.

To succeed, the Marathon Foods manages risk proactively and consistent throughout the

procurement process. It should be conscious choice at all different levels of organisation to

recognise and pursue the effective management during life of project. Hence, the risks that

exist from the moment of project are conceived. Thus, advance a project without any

adoption is a proactive approach that increases the risk management and the potential impact

of materialisation of risk on the project that potentially leads toward failure (Marathon,

2015).

Marathon always keeps the company on risk register that assesses, manages, and control

risks. It is basically a process through which plans of risk response are executed, identified,

and tracked. Not only this, but residual risks are monitored, identified, and effectiveness of

process is assessed against the risks throughout the project. Hence, the planned responses to

risks in Marathon are involved in the management plan of suppliers that are implemented

during the procurement process. However, the procurement process or the import work or

procurement process must be sustainably monitored for new risks, which change or obsolete

the process (Marathon, 2015).

 Assignment 15

The monitoring and controlling risks process includes techniques like analysis of variance

and trends that need the use of performance, which generated data during the procurement

process. Moreover, other reason of monitoring and controlling the risk process are

(Marathon, 2015);

 Assumptions that project is valid.

 Analysis show that evaluated risk has changed or can be eliminated.

 Different policies and risk management procedures are appreciated.

 Reserves for emergency if costs or schedule must be changed to align with the current

risk valuation.

The Monitor and Control Risks process may involve the selection of alternative

strategies, executing a contingency plan or backup, implementation of corrective actions and

the modified plan for the project management. Monitor and Control Risks also include an

upgrade to assets of the organisation, including databases of lessons learned from the project

and risk management templates for future projects (Pryke and Smyth, 2012).

Conclusion

In a nutshell, it is stated that Marathon Foods have a close relationship with the

suppliers of Greece and UK. Marathon imported food materials from Greece to UK and then

distribute to retailers and the businesses that approach them. The company also bears some

risks but during the procurement procedure, it is identified, monitored, and controlled through

risk management process. Marathon has planned responses to risks that are involved in the

management plan of suppliers that are implemented during the procurement process.

Marathon is also more likely to have a process of continuous performance management

vendors have standardised and visibility of supplier performance issues and supply risk.
 Assignment 16

References

About Marathon Foods (2015) Marathon, the original Greek taste, [Online] Available

from www.marathonfoods.co.uk/about-us.php, Accessed on [26th October, 2015].

Caron, F. (2013). Project Risk Management. In Managing the Continuum: Certainty,

Uncertainty, Unpredictability in Large Engineering Projects (pp. 67-74). Springer

Milan.

Chopra, S., & Sodhi, M. S. (2012). Managing risk to avoid supply-chain breakdown. MIT

Sloan Management Review (Fall 2004).

Howard, R., & Serpell, A. (2012). Procurement management: analysing key risk

management factors. RICS COBRA 2012, 11-13.

Kerzner, H. R. (2013). Project management: a systems approach to planning, scheduling,

and controlling. John Wiley & Sons.

Kerzner, H. R. (2013). Project management: a systems approach to planning, scheduling,

and controlling. John Wiley & Sons.

Matthew Incles (2015), “Greece on the Brink - 03 July 2015,” [Online] Available from

http://www.promar-

international.com/modules/blog/article/161/03_July_2015_greece_on_the_brink.as

px , Accessed on [26th October, 2015].

Meredith, J. R., & Mantel Jr, S. J. (2011). Project management: a managerial approach.

John Wiley & Sons.

Pryke, S., & Smyth, H. (2012). The management of complex projects: a relationship

approach. John Wiley & Sons.

Ross, D. F. (2013). Competing through supply chain management: creating market-

winning strategies through supply chain partnerships. Springer Science & Business

Media.
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Walker, P., Grey, S., Raymond, G., & Cooper, D. F. (2013). Project Risk Management

Guidelines: Managing Risk in Large Projects and Complex Procurements. Wiley.

Wisner, J., Tan, K. C., & Leong, G. (2015). Principles of supply chain management: a

balanced approach. Cengage Learning.