Akshaya Patra (Final Report)

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Procurement Plan at The Akshaya Patra Foundation, Bangalore. Team Nonnas

BACKGROUND OF THE MIDDAY SCHOOL MEAL PROGRAM In 2001, the Supreme Court of India directed state governments to introduce cooked lunches in all government and government assisted primary schools within six months. The subsidy offered by the central and state governments added up to only one to two rupees per child, and this was not sufficient to prepare a nutritious meal. As a result of the failures of the Supreme Court mandate and previous programs, and frustration at the inability to provide a basic meal to students, a group of talented and diverse individuals came together to think of a creative and innovative method to implement a school feeding program that could feed a large number of children with little cost, thus forming the Akshaya Patra Foundation. Akshaya Patra answers the Indian Supreme Courts call for a viable midday meal program and also works to solve many of the hunger and educational issues facing India. Nutrition and school performance are closely related and Akshaya Patra is working towards eradicating hunger while promoting education.

DETAILED STUDY The strategic importance of procurement Procurement process is the term used by businesses to describe the buying process, and can refer to the purchase of supplies or services. The goal of the procurement process is to buy the exact product or service when needed for the most favourable price. Identifying a need is the first step in the procurement process.



Procurement Plan at The Akshaya Patra Foundation, Bangalore. Team Nonnas

Pre procurement The beginning step in the process of procurement is the recognition that there is a need or wants for a particular good or service. Before there is a chance for the acquisition of goods, there has to be the desire to actually gain possession of something in particular. The term pre-procurement refers to the timeframe before a tender for a particular product or service has been issued. Activities undertaken in the pre-procurement phase can include structured discussions between suppliers and procurers, a market survey on the availability of certain products and procuring research & development (R&D) services. During Procurement Typically a purchase requisition (PR) will be sent to the buyer indicating what product or service is needed. Selecting a supplier typically involves calling out for tenders to multiple suppliers and comparing the bids to determine which supplier can best meet the needs of the business. The buyer will request a specific quantity and delivery date based on the requirements outlined on the purchase requisition. Determining the price paid usually includes comparing bids then negotiating the best price. The buyer should ensure all bids are an accurate reflection of the work to be performed or service provided and include all applicable taxes. This way, the total landed cost is known before the purchase order is placed. It is also necessary to understand the lead time and expected quantity to be delivered. Based on the actual need date, any accepted quote should meet the required date. Post procurement The last step involves taking possession of the desired good or service, ensuring that the item is in compliance with all the claims made by the supplier, and rendering payment according


Procurement Plan at The Akshaya Patra Foundation, Bangalore. Team Nonnas

to the terms worked out with the supplier. In some cases, it may be possible to engage in the acquisition of services and goods prior to supplying payment. At other times, payment may be necessary before taking possession. With both scenarios, the consumer usually has a short period where it is possible to reverse the acquisition and move on to another option. Post procurement quality control:

a) Sampling. b) Rejected materials.

OBJECTIVES & SCOPE The need for a model quality assurance system Quality assurance is a wide-ranging concept which covers all matters that individually or collectively influence the quality of a product. Evaluation of information on quality is often lacking, and inspections at manufacturing sites are not routinely performed to a consistent standard. The implementation of a quality assurance system in procurement, including systems for prequalification, storage and distribution, may affect costs. However, the benefits of ensuring quality outweigh the cost investment because they reduce the possible losses caused by the purchase and supply of substandard products. Problem Definition Identification of procurement based problems right from selection of suppliers, incoming materials, delivery and storage with regards to quality assurance at The Akshaya Patra Foundation, Bangalore and suggestions of suitable and effective alternatives.


Procurement Plan at The Akshaya Patra Foundation, Bangalore. Team Nonnas

RECOMMENDATIONS Documentation of policies and standards Documentation is a critical part of a quality assurance system. TAPF should have a comprehensive documentation infrastructure, which should include policies, guidelines, norms, standards, manuals, procedures, records and related documents. All activities of each section or department should be performed and documented in a standardized manner, following approved written procedures. The main elements of the documentation system of this model are described below.

Quality manual: The purpose of such a manual is to document the quality policy as defined by management in relation to the various activities undertaken by the procurement agency. There should be policy statements and a quality policy in terms of the agencys activities and objectives.

Standard operating procedures (SOPs) TAPF should have written, clear and detailed standard operating procedures (SOPs) for all the activities to be performed in the premises. The content of each SOP, particularly the stepby-step descriptions of activities and approved recording or reporting formats should reflect the operations of the particular procurement agency.

Elements of standard operating procedures


Procurement Plan at The Akshaya Patra Foundation, Bangalore. Team Nonnas

Title and number describes clear indication of the activity to be performed. Objective: what is to be accomplished and/or achieved with the SOP.? Scope: level or depth, or how widely, the SOP is applicable. Responsibility: list the person(s) responsible for performing the activities listed in the procedure. It may be useful to refer to the position rather than the name of the person. Action: sequence of action steps to be followed, from the beginning to the end of the process, to perform the activity.

Code of conduct The procurement agency should design, authorize and implement a written code of conduct. The code of conduct should describe the policy of the procurement agency regarding the conduct of staff in respect to their activities. It should be followed by all personnel.

Maintenance of records: Records of all operations should be maintained and kept in a suitably organized manner. Sufficient areas for the storage of records, including product information, manufacturers information and inspection reports, should be available. Access to these areas should be restricted to authorized personnel only, as confidential information may be filed.


Procurement Plan at The Akshaya Patra Foundation, Bangalore. Team Nonnas

VENDOR REGISTRATION1. Name of food business .

Telephone No. 2. Address of premises

..................................................................................... ..................................................................................... 3. Postal Code ................. 4. Type of premise Farm/small holding Food Manufacturing/processing Catering Hotel Private house used for a food business Wholesale/cash and carry Premises used by a number of businesses Distribution/warehousing Moveable premises


Procurement Plan at The Akshaya Patra Foundation, Bangalore. Team Nonnas

Retailer Market Other: please give details . 5. Does your business handle or involve any of the following? Frozen foods Canned foods Fruit and vegetables Dairy products Delivery service Bulk Storage Use of private water supply Other: please give details .. 6. Does your business posses any quality certification? If YES, Please specify 7. What kind of Quality Assurance measures does your business consider to ensure the freshness and retainment of nutritive value of raw materials? 8. How long have you been in business? No. of years. 9. Are vehicles used for transporting raw materials from the premises? YES/NO

---------------------------------------------------------------------------------------------------------------The main aspects while choosing any prospective vendor is QUALITY PROXIMITY COST


Procurement Plan at The Akshaya Patra Foundation, Bangalore. Team Nonnas

This is an effective tool which helps in performing a thorough background check of the prospective vendors. Also, helps to determine the capability of the vendor to supply raw materials. Shortlist vendors based on the requirements and specifications. Helps to enhance the prioritization of vendors.


Procurement Plan at The Akshaya Patra Foundation, Bangalore. Team Nonnas


Evaluation of potential suppliers

Vendor Name: Vendor Number: Date: Buyer: Vendor Rating: PURCHASING Criteria Yes No Comments Provides cost-saving alternatives Offers competitive pricing Backorders are held to a minimum Supplies current catalogs Provides status of orders Apprises system of any potential delays or problems Promptly replaces any rejected items Is courteous and h