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

Published in: Engineering, Integration, and Alliances for a Sustainable Development. Hemispheric Cooperation for Competitiveness and Prosperity on a Knowledge-Based Economy: Proceedings of the 18th LACCEI International Multi-Conference for Engineering, Education and Technology
Date of Conference: July 27-31, 2020
Location of Conference: Virtual
Authors: Guillermo Pretell (Universidad Peruana de Ciencias Aplicadas, PE)
Edgardo Carvallo (Universidad Peruana de Ciencias Aplicadas, PE)
Iliana Macassi (Universidad Peruana de Ciencias Aplicadas, PE)
Christian Del Carpio (Universidad Peruana de Ciencias Aplicadas, PE)
Full Paper: #90

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 77.7% 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%.