Ducati Cost Analysis

Introduction

Acting as the Purchasing Manager of this organization I have chosen, Ducati Motor Holding S.p.A., Italy, there will be an analysis report of the three aspects of the purchasing management. Firstly, the supplier selection criteria and supplier evaluation system, which includes the purchasing goals, the needs of the organization as well as the purchasing cost analysis. Secondly, the usage of ICT (Information and Communication Technologies) for purchasing operations. Lastly, for the purchasing operations and management will be covered in this essay.

Ducati first succeeded in manufacturing the fastest 250cc production bike in 1960 called the Mach 1, which was lightweight and a true sports bike design. From this initial success

The importance of ICT is having the capability to develop better connection to information and communication in excessive communities. Promotion of ICT has been rooted in many countries across the Earth because they are afraid that unless the behind areas have chances to catch up. (ICT Definition)

It is believed that Ducati are still using email, fax, operating software and applications software for purchasing. Ducati are working with over 23 different companies purchasing different parts. Therefore some of the companies may be more advanced in their technologies and some may be slower behind technology time. This would be a reason why Ducati is still using email, fax different operating software and different applications software for purchasing.

Supply Chain Analysis (Supply Chain Analysis and Mapping)

− Identification of near-term goals and clarification of objective lists to disclose closely defined industries and companies

− Creation of messaging that will reconnect with the target audience

− Stronger interactions with local companies in the supply chain

2. Value Proposition Analysis (Value Proposition)

− Companies use this analysis to target audiences who will gain most from using the company’s products and this also supports to maintain its competitive advantage as known as economic moat Purchasing Cost Analysis cont’d…

3. Cost Driver Analysis (Methods of Cost Driver )

− A review of items to guarantee that the company meticulously divided production costs to goods and services

− Different methods for this analysis such as:

• Cost Accounting Systems Review, which is the process a company obtains the cost information and applies it into allocation. This analysis is required because a company must make sure it uses the correct cost accounting system for its production