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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS Assessment – 2 – Project PART A Your Tasks

Select 3 suppliers of goods and services relevant to your area of work (e.g. Food and Beverage, Cookery, Events, Tourism, Administration or similar) who currently supply your organisation (for example meat, fruit and vegetables, stationery, cleaning services, laundry services, beverages, insurance etc.) 1. List the suppliers you have selected and describe the products or services they currently provide you with Supplier 1: Haverick meats Products or services provided: Meat, Pre-cooked meat , lamb ribs , steak , chicken Supplier 2: Ponti Exotic Fruit & Vegetables Wholesale Products or services provided: Onions, carrot, cucumber and all the vegetables Supplier 3: Bobs Bakery shop Products or services provided: Items related to the bakery like bread, burger buns. 2. List the key performance indicators/specifications that are required for the supply of each product or service from each supplier. Haverick meats  The supplies we get from this supplier are: 1. 5kg of chicken breast 2. 3 packets of rump steak which of 300 g each 3. Lamb ribs total of 5 kg 2 packets 4. Chicken thigh 5 kg 5. Pork belly Ponti Exotic Fruit & Vegetables Wholesale  The supplies we get from this supplier are: 1. Whole box of carrot 2. 2 packets of cucumber and 3 kg of onions and spring onion 3. Stuffs like capsicum, mango, corn Bobs Bakery shop  The supplies we get from this supplier are; 1. 30 burger buns 3 Research alternative suppliers for each supplier you have listed in Question 1 and obtain an alternative quote for each supplier you currently use, based on the key performance indicators/specifications you have identified in Question 2. Alternative suppliers I have researched so that if one is closed then I can go for another option are;

For the meat, Tanta meats. According to Tanta meats, I went to its website and found out that it has got decent review. We can get quality product in a cheap price and we can get healthy farming food. Even the delivery is in less time like 3 days. Following that I have found Simon George & sons vegetables market from where I can get vegetable. Simon George & Sons is the premier produce wholesaler in Australia, consistently offering the highest quality produce on the market and it’s easy to order vegetables because we can download the app of the store and order easily. Next, for the bread I have found Harrys bread but there nothing problem with the bread service provided by this and the first supplier bobs bakery. Service time is similar, and the quality provided by them are also similar. 4. Once you have received the 3 quotes, compare these with the existing supplier provisions and attach a summary which outlines the advantages and disadvantages for:  Quality  Prices  Payment conditions  Service provisions  Reliability  Specific needs of your organisations (quantities, $ terms, purchasing power etc.) Haverick meat Tanta meats Ponti Exotic Simon Bobs Fruit & George & bakery Vegetables sons’ Wholesale vegetables

Price

Price is decent from this supplier like 5kg of chicken costs 44 bucks . Similarly, when it comes to other like steak , lamb its cheaper

Price is good but not compared to Haverick meat like it costs 47 bucks for the 5 kg of chicken

Price for vegetables is 2 dollar less than supplier 2 . Its costs total of 40 dollar for vegetables .

Price for the vegetables is 2 dollar more than the supplier 1

It is cheaper than the supplier 2 by 50 cents

Harrys bakery

It is expensive than the supplier 1 by 50 cents

Payment Payment condition conditions for this supplier is weekly

For this we have to pay fortnight

We have to pay weekly to this supplier through bank

We have to pay this supplier weekly by cash

We have to pay cash on the same day when we order bread

We have to pay cash on the same day when we order bread

Service Service provided provisions by this supplier is good like it delivers the good within 1 day

Service provided by this supplier is also good, but it delivers the good within 1.5 day

Delivers the goods in 1 day

Delivers in 1 day

Takes 5 hrs to make the order for them

Takes 7 hrs to make the order for them

Its trustworthy to get meats from this supplier

It’s also trust worthy to get meats from this suppliers

Trust worthy to get vegetables

Trust worthy to get vegetables

Trust worthy

Trust worthy

Quality of the meats are fresh and good

Same goes for this supplier its fresh and good

Quality is decent

Quality of the vegetables are good here as well

Quality of bread is not that good, and bread is small in size

Quality of bread is good, and the size is little big compare to supplier 1

Reliabilit y

Specific needs Quality

5. Based on your comparison, write a recommendation for whether one or several new supplier(s) should be considered to replace any of the existing ones. Which aspects will need to be negotiated specifically where one or several new suppliers are considered or re-negotiated where existing suppliers are preferred? Answer. According to my comparison, I would recommend to get orders from supplier 1 however it maybe not be good to get bread from supplier 1 cause its small but we can negotiate and increase the price but the breads should be good or else we can find another replacement for the bread. Similarly, rest of the goods like chicken and vegetables are good from the supplier 1 as compare to supplier 2 and is trustworthy to get goods from the suppliers. However, we can negotiate on chicken if possible but still price is good enough for us. 6. How are the relationships with existing suppliers managed in your organisation? What does this entail in terms of communication, monitoring and provisions to overcome supply or service issues? What are your recommendations based on existing provisions in place (or where these do not or only partially exist)? Answer. Suppliers are our partners and this partnership should be based not only on financial transactions, but also on mutual trust and loyalty. Make our suppliers feel like they are a part of our business. Inform them about our processes, such as release of new products and promotion and listen to their concerns. I don’t want to lose my suppliers; I can do that by paying them on time so that I can prove that I am reliable customer and easy to work with. If I can’t make payment on a date agreed, then I will inform the suppliers as soon as possible with the date on which then can expect the payment 7. Where actual negotiation will take place as a result of the aspects you have identified in Question 5, you will be observed conducting these negotiations for Part B of this assessment project. Or Where your organisation’s policies and procedures prevent you from negotiating or renegotiating, you will be observed conducting negotiations in a simulated environment in Part B of this assessment project, based on the factors you have identified in Question 5. Actual negotiation will take place at Brisbane

Part B – Conducting Negotiations You will be observed conducting negations with existing or potential new suppliers as identified in Question 5 of Part A of this assessment. The suppliers may be actual, where organisational policies and procedures permit, or simulated, with colleagues or students as agreed to with your trainer. You are required to record all details discussed during the negotiation talks and use these as the basis to draw up a contract for each supplier in Part C of this assessment. Provide the following details for at least 2 different negotiations (Negotiation 1 and 2) you will undertake: Negotiation 1 Real Negotiation

Simulated Negotiation √

Supplier details

Fruits & Vegetables from Australia

represented by:

Mandy

Location

Brisbane

Date

27th March 2019

Nature of negotiation

Pricing and quality

Details

We are negotiating 8% off the total of the invoice for punctual payment. The supplier commits to deliver high quality and more freshness in his products.

Negotiation 2 Real Negotiation

Simulated Negotiation √

Supplier details

The Meating

represented by:

Mandy

Location

Brisbane

Date

27th March 2019

Nature of negotiation

Pricing

Details

We are negotiating 5% off from the monthly invoice after purchases up to 80 kg a month.

Part C – Making formal agreements 1. Present the outcomes from each negotiation to your supervisor/manager or trainer and discuss the viability of each term negotiated according to your notes. Enter the outcomes for each contractual detail you have negotiated in the table below and indicate the changes required (if any) and/or the approval to proceed with the agreements. 2. Supplier 1

Approved Not Approved

Contractual detail 1: Pricing

Yes

Contractual detail 2: Quality

Yes

Recommended Change

Supervisor Name: Mandy Supervisor Signature: Mandy Date: 27th March 2019

Supplier 2

Approved Not Approved

Contractual detail 1: Pricing

Yes

Recommended Change

Supervisor Name: Mandy Supervisor Signature: Mandy Date: 27th March 2019

3. Based on the feedback from your supervisor or trainer, contact the supplier and negotiate the final changes if required. Record the negotiated changes in the table and obtain final approval from your supervisor or trainer. Supplier 1 Outcome approve not d approved Details negotiated Yes 8% Discount and 30 Discount & Payment date days to pay Quality & Freshness

The supplier commits to deliver high quality

Yes

and fresh vegetables Supplier 2 Details negotiated Discount & Payment date

Outcome 5% Discount and 15 days to pay

Yes

4. Contact each supplier by email and confirm the agreements made. Advise each party that you will finalise the formal agreements for signing of all parties. a. Fruits & Vegetables from Australia Dear supplier, According with the negotiation I am sending the agreement regarding the following points 1. Discount of 8% 2. Payment day due to 30 days after delivery 3. Vegetables fresh Thanks Mandy b. The Meating Dear supplier, According with the negotiation I am sending the agreement regarding the following points 1. Discount of 5% 2. Payment day due to 15 days after delivery Thanks Mandy 5. Draw up the contract agreements based on your final negotiated outcomes. Each contract must contain the following details: You are encouraged to identify legal requirements based on your own research or legal advice. The following websites provide basic information thereto: https://www.smallbusiness.wa.gov.au/business-topics/money-tax-and-legal/legalmatters/business-contracts/#verbal https://www.business.qld.gov.au/business/starting/starting-a-business/working-businessadvisers/types-business-advisers 

Names of contracting parties including trading names and ABN/ACN, as well as their contact details



supply conditions, including volume, price, discounts, ordering periods, take or pay and delivery times payment terms

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        

specifications of goods or services supplied (scope of goods) warranty periods for defective goods or services limited liability (risk of loss or damage) intellectual property confidentiality insurance dispute resolution termination and exclusion clauses signature provisions

Contract agreement with each supplier Fruits & Vegetables from Australia (ABN: 256 365 789), Ph: 07 236 285 7894 Supply conditions  Discount of 8%  Payment day due to 30 days after delivery  Vegetables fresh Payment Terms 8% off the total of the invoice for punctual payment by credit card or debit card or direct deposit

Specifications of goods or services supplied (scope of goods)  Coss Lettuce  Spinach  Mix Salad Warranty periods for defective goods or services Vegetables must look at least 70% of freshness within 48 hours. Limited liability (risk of loss or damage) The product liability risk related to fruit and vegetable marketing is that of customer liability associated with injuries caused by harmful products such as contaminated fresh produce. An event associated with product liability risk may have a very low probability of occurrence but may result in a large economic loss Intellectual property Trademarks and copyright of Fruits & Vegetables from Australia Trademark attained with the help of IP Australia act. Confidentiality The Privacy Act 1988 (Privacy Act) is an Australian law which regulates the handling of personal information about individuals. Contact information of clients won’t be shared or discussed with third party. Insurance Insurance agencies can assist businesses with compulsory and optional insurance needs. Insurance cover you can tailor to suit your fruit or vegetable growing farm. Fruits &

Vegetables from Australia ‘s farm cover insurance allows you to tailor an insurance plan to suit your horticultural operations Dispute resolution Dispute resolution under the Horticulture Code procedure involves the following steps:  The complainant must inform the other party in writing of the dispute and state:  what the dispute is about  the action they think will resolve the dispute  their desired outcome.  The parties must then try to resolve the dispute.  If the parties cannot resolve the dispute within three weeks after the complainant informs the other party of the dispute, either party may ask the mediation adviser to appoint a mediator.  Once a mediator is appointed, the mediator can decide how, where and when they will carry out the mediation.  Once a matter has been set down for mediation, both parties must attend the mediation and try to resolve the dispute Termination and exclusion clauses Broadly, The Unfair Contract Terms Act 1977 ("UCTA") does not cover insurance contracts; contracts relating to the creation, transfer or termination of intellectual property rights; contracts relating to the formation, dissolution or constitution of a company or to the rights or obligations of its members; contracts relating to the creation or transfer of securities or rights in securities; contracts relating to the creation, transfer or termination of an interest in land; certain marine/shipping contracts; or employment contracts. There are, however, certain savings for consumers under marine/shipping contracts, and for employees under employment contracts. Supplier 2: The Meating (ABN: 256 365 789), Ph: 07 236 285 7894 Supply conditions  Discount of 5%  Payment day due to 15 days after delivery  Temperature: Rate from 1 to 5 according with the state and temperature of the meat following procedures of food safety, max within 3 C and 5 C.  Delivery Time: Rate from 1 to 5 the delivery time spent, max within 24 hours.  Price: Rate from 1 to 5 the price according with the quality of the meat, Chicken 8$ per kg, Pork 13$ per Kg and fish 11$ per kg. Payment Terms  5% off the total of the invoice for punctual payment by credit card or debit card or direct deposit. Payment day due to 15 days after delivery

Specifications of goods or services supplied (scope of goods)  Coss Lettuce

 

Spinach Mix Salad

Warranty periods for defective goods or services Vegetables must look at least 70% of freshness within 48 hours. Limited liability (risk of loss or damage) The product liability risk related to fruit and vegetable marketing is that of customer liability associated with injuries caused by harmful products such as contaminated fresh produce. An event associated with product liability risk may have a very low probability of occurrence but may result in a large economic loss Intellectual property Trademarks and copyright of Fruits & Vegetables from Australia Trademark attained with the help of IP Australia act. Confidentiality The Privacy Act 1988 (Privacy Act) is an Australian law which regulates the handling of personal information about individuals. Contact information of clients won’t be shared or discussed with third party. Insurance Insurance agencies can assist businesses with compulsory and optional insurance needs. Insurance cover you can tailor to suit your fruit or vegetable growing farm. The Meating ‘s farm cover insurance allows you to tailor an insurance plan to suit your horticultural operations Dispute resolution Dispute resolution under the Horticulture Code procedure involves the following steps:  The complainant must inform the other party in writing of the dispute and state:  what the dispute is about  the action they think will resolve the dispute  their desired outcome.  The parties must then try to resolve the dispute.  If the parties cannot resolve the dispute within three weeks after the complainant informs the other party of the dispute, either party may ask the mediation adviser to appoint a mediator.  Once a mediator is appointed, the mediator can decide how, where and when they will carry out the mediation.  Once a matter has been set down for mediation, both parties must attend the mediation and try to resolve the dispute Termination and exclusion clauses Broadly, UCTA does not cover insurance contracts; contracts relating to the creation, transfer or termination of intellectual property rights; contracts relating to the formation, dissolution or constitution of a company or to the rights or obligations of its members; contracts relating to the creation or transfer of securities or rights in securities; contracts relating to the creation,

transfer or termination of an interest in land; certain marine/shipping contracts; or employment contracts. There are, however, certain savings for consumers under marine/shipping contracts, and for employees under employment contracts. 6. Present your final contracts to your supervisor and trainer for final approval...