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Procurement Strategy

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Procurement Strategy
Philippine Polypropylene Inc (PPI) An Affiliate Company of Petron Corporation

PROCUREMENT STRATEGY
Key to Supply Reliability

Group 1 OPEMAN
November 2010

Procurement Strategy: Key to Supply Reliability

OPEMAN

Philippine Polypropylene Inc

TABLE of CONTENTS 1. Overview of the Company ……………………………………………………… 3 Company Background ……………………………………………….……….. 3 The Production Process ……………………………………………………… 3 Product Applications ………………………………………………………….. 4 Vision, Mission and General Business Strategy …………………………… 5 Reliable Material Supply: Procurement Responsibility ……………………. 8 2. Problem Statement ………………………………………………………………. 9 3. Developing the Procurement Strategy ……………………………………….. 9 The Sourcing Matrix Framework …………………………………………….. 9 4. Justification of Strategic Options …………………………………………….. 11 Alternative Procurement Strategies ...…………………………………………11 Identifying Applicable Strategy in the Sourcing Matrix …………………….. 13 Determining PPI’s Buying Position Perspective and the Appropriate Procurement Strategy ………………………………………….. 15 5. Recommendation ………………………………………………………………… 17 6. Proposed Implementation Plan ……………………………………………….. 18 Implementation Tactics and Timeline ..........……………………………….. 18 Other Considerations during Implementation ………………………………. 21 7. Risks and Assumptions …………………………………………………………. 25 Risks …………………………………………………………………………….. 25 Assumptions ……………………………………………………………………. 26 8. Summary …………………………………………………………………………….27 9. Sources and References ………………………………………………………….28

Page 2 of 28

Procurement Strategy: Key to Supply Reliability

OPEMAN

Philippine Polypropylene Inc

1. OVERVIEW OF THE COMPANY • Company Background Philippine Polypropylene Inc (PPI) started operation in 1995 originally under the name of PetroCorp (Petrochemical Corporation of Asia Pacific). The company is engaged in the petrochemical business particularly in the production of polypropylene resin until 2004 when the company

encountered financial difficulties forcing its
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