PMM Assignment 4: Case Study on AM Transportation

Sameer Dubey 44C

Ans 1- Vineet should have worked first on the supplier localization program which was
pending from quite some time. The pending approvals from HQ should have been cleared
and it would have helped AMT to bring down the costs. After getting the tender he should
have stayed back and talked to the critical suppliers himself as he did before getting the
tender. He should have taken them into confidence again so that the production can start at
the right time.
Also, just in order to get the tender he should not have bid so aggressively which led AMT to
this situation. He should have thought through of the consequences and alternate ways to
approach the problem by taking CFO and critical suppliers on board.

Ans 2- Vineet must have proposed the CFO to provide loans to the critical suppliers at lower
interest rates so that the working capital becomes cheaper and the suppliers will fulfill the
PO from AMT. The amount of loan can be adjusted later in the payments. Alternatively, he
could have convinced the CFO to pay for the supplies in advance and this payment could be
a certain percentage of the total payables.

Ans 3- Salil could have helped Vineet out by:

i)
ii)
iii)

Getting the approvals for the soft loan or the advance payment scheme worked out by him
Lobbying for the pending approvals at HQ
Meeting with the critical suppliers and taking them into confidence to work out a favorable
deal.

Ans 4- His plan for the reluctant suppliers should have been to assuage their concerns
regarding the profits by showing them the huge demand and providing monetary assistance.
He should interact with the level two suppliers as well who supply raw materials to the main
AMT suppliers. He should work out a deal that benefits all the parties. When both input cost
and working capital become cheap the reluctant suppliers will honor the PO.

Ans 5- The key learnings from this project are:

i)
ii)

iii)

In case of such aggressive bargaining it is important to be in constant touch with the

suppliers and stay on top of the situation.
A long term strategy and alternative ways should be thought through in pressure
situations. A quick fix solution for overnight success is difficult to implement.
It is important to ensure smooth execution and completion of the project before
starting the celebrations.