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Application of Kraljic and stowage techniques to define purchasing strategies to reduce cost overruns in a food service company

  • Universidad Peruana de Ciencias Aplicadas

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Scopus citations

Abstract

A prepared food supply company presents a cost overrun in the purchase of food of 20% with respect to the base price used in the fixing of the sale price of the rations, said cost overrun is due to bad planning since it is not counted with defined purchasing strategies and market conditions are not valued. After an analysis, cause - root, it is identified that the main cause of the cost overruns are unscheduled purchases, so the study area has been delimited to the acquisition and transport of products. The proposed solution to reduce cost overruns is based on the application of Kraljic in order to define the company's purchasing policies and strategies and the implementation of stowage techniques in food transportation and storage. Following the application of the aforementioned solutions, it was possible to mitigate the unscheduled purchase situations, bringing with it a 92% decrease in the cost overruns for the purchase of food products, and the ration cost overrun indicators were improved by 15% and purchases not programmed in 22%.

Original languageEnglish
Title of host publication18th LACCEI International Multi-Conference for Engineering, Education Caribbean Conference for Engineering and Technology
Subtitle of host publication"Engineering, Integration, and Alliances for a Sustainable Development" "Hemispheric Cooperation for Competitiveness and Prosperity on a Knowledge-Based Economy", LACCEI 2020
PublisherLatin American and Caribbean Consortium of Engineering Institutions
ISBN (Electronic)9789585207141
DOIs
StatePublished - 2020
Event18th LACCEI International Multi-Conference for Engineering, Education Caribbean Conference for Engineering and Technology: "Engineering, Integration, and Alliances for a Sustainable Development" "Hemispheric Cooperation for Competitiveness and Prosperity on a Knowledge-Based Economy", LACCEI 2020 - Virtual, Online
Duration: 27 Jul 202031 Jul 2020

Publication series

NameProceedings of the LACCEI international Multi-conference for Engineering, Education and Technology
ISSN (Electronic)2414-6390

Conference

Conference18th LACCEI International Multi-Conference for Engineering, Education Caribbean Conference for Engineering and Technology: "Engineering, Integration, and Alliances for a Sustainable Development" "Hemispheric Cooperation for Competitiveness and Prosperity on a Knowledge-Based Economy", LACCEI 2020
CityVirtual, Online
Period27/07/2031/07/20

Keywords

  • Food industry
  • Kraljic
  • Purchasing management
  • Stowage techniques
  • Supply chain

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