Role of Procurement and
Purchasing Manager at
Honda
CAPSTONE INDIVIDUAL ASSIGNMENT #1
52Q MGMT 5018
LOVEPREET SINGH | #4374682
1. Introduction
Honda has set its sights on the future and plans to launch a new electric vehicle within the next two years in an
industry that is becoming more competitive and dynamic. To ensure the successful launch of this electric car
project, this paper details the crucial role played by Honda's procurement and purchasing manager. It also goes
over the duties and responsibilities of an RMA (Return Merchandise Authorization) or Reverse Logistics
Employee inside the organization.
2. Role as Procurement and Purchasing Manager.
2.1 A Summary of the Role: At Honda, a procurement and purchasing manager plays a crucial role in ensuring
the smooth introduction of a new electric vehicle. This job entails managing the supply chain's many components
to guarantee a smooth flow of raw materials and production-related components. A procurement and purchasing
manager serves as a liaison between Honda and its suppliers and oversees sourcing, bargaining, cost control,
quality control, risk reduction, on-time procurement, and ensuring sustainability criteria are being met. Aligning
procurement strategies with the entire product development and launch strategy requires effective
communication and coordination with other departments, including manufacturing, marketing, research and
development, and others.
2.2 Supply Chain Administration: Supply chain management is one of the main duties of a procurement and
purchasing manager. This entails choosing trustworthy vendors, negotiating contracts, and maintaining a steady
supply of components of the highest caliber. Strong supply chains that can adjust to market changes,
interruptions, and demand variations must be established by the management.
2.3 Supplier Choice: The project's success depends on the choice of suppliers. The task of assessing potential
suppliers for their capacity to deliver high-quality components, competitive pricing, and adherence to
sustainability requirements falls on procurement and purchasing managers. To reduce risks and make sure of a
consistent supply, a varied and competent supplier base is necessary.
2.4 Cost Control: A crucial component of the position is cost control. To maximize profitability while preserving
product quality, managers analyze costs, spot cost-saving options, and bargain favorable prices with suppliers.
The competitiveness of the electric automobile on the market is aided by effective cost management.
2.5 Quality Control: It is crucial to keep the components' quality high. To create and maintain quality control
procedures, procurement, and purchasing managers collaborate closely with suppliers. For the purpose of
preventing flaws in the finished product, they carry out routine inspections and handle any quality concerns right
away.
2.6 Risk Control: An additional critical duty is identifying and reducing supply chain risks. To lessen reliance on
a single source, managers evaluate probable interruptions, create backup plans, and maintain a broad supply
base. Effective risk management techniques guarantee a smooth production process.
2.7 Appropriate Procurement: The procurement efforts must be carefully planned and scheduled in order to
meet the two-year launch timeframe. A procurement timetable is established, progress is tracked, and suppliers
are coordinated to ensure that all components are acquired on schedule, avoiding manufacturing delays.
2.8 Adherence to Law and Sustainability: Honda must comply with certain norms and laws as part of its
commitment to sustainability and ethical sourcing. To encourage ethical sourcing and lessen the impact on the
environment, procurement, and purchasing managers make sure that suppliers adhere to these requirements.
2.9 Collaboration: Collaboration and effective communication with other departments are essential. To match
procurement plans with overall product development and launch strategies, procurement and purchasing
managers collaborate closely with the R&D, production, and marketing departments.
3. Role as RMA Employee and Reverse Logistics Employee
3.1 RMA and Reverse Logistics Overview: An important part of assuring customer happiness and preserving
product quality is handling returns and managing reverse logistics. A key player in this procedure is an RMA
(Return Merchandise Authorization) or reverse logistics employee. They manage inventory, uphold quality
control, allow effective returns of goods, interact with consumers, and examine return data for ongoing
development.
3.2 Processing of Returns: Receiving returned goods, examining their condition, and deciding whether they
may be sold, repaired, or need to be disposed of are all part of the returns processing process. Customers get
RMAs from RMA staff, who also authorize returns and provide return instructions.
3.3 Inventory Control: For tracking and organizing returned products, effective inventory management is
required. RMA staff members maintain inventory records, categorize returned goods according to their
destination, and guarantee precise inventory counts. Effective management reduces inventory losses and
guarantees smooth product flow.
3.4 Quality Assurance: The upkeep of product quality is of utmost importance. To guarantee that the
refurbished or repaired goods fulfill the original quality requirements, RMA workers supervise the work. To stop
faulty items from reentering the market, quality control procedures are put in place.
3.5. Interaction: Smooth customer interaction is essential for a successful return procedure. Throughout the
return process, RMA professionals help customers, respond to their issues, and uphold openness. To effectively
organize returns, they also work with other departments.
3.6 Cost Control: Managing return-related expenses is a crucial duty. RMA staff members look for methods to
reduce costs associated with returns, including shipping charges, restocking fees, and refurbishing costs. Cost
control helps to increase overall profitability.
3.7 Data analysis: Understanding return patterns and streamlining operations both rely heavily on data analysis.
Employees of RMA produce reports and analyze return data to pinpoint problem areas, improve product quality,
and lower the frequency of returns.
4. Conclusion
In conclusion, the success of Honda's new electric car project depends on the work of a Procurement and
Purchasing Manager and an RMA/Reverse Logistics Employee. The timely availability of components, costeffective procurement, and adherence to sustainability and quality requirements are all guaranteed by
purchasing and procurement managers. Employees in RMA and Reverse Logistics, on the other hand,
effectively manage returns, uphold product quality, and contribute to cost management and client pleasure. In
order to meet Honda's objective of releasing a competitive electric car within two years, both jobs are essential.
5. Reference.
 Hawkins, E. (2022, November 17). The procurement manager defined: Role, responsibilities and
resources. RFP360. https://rfp360.com/procurement-manager/
 Honda takes another crack at US EV market with help from GM. (n.d.).
https://financialpost.com/pmn/business-pmn/honda-takes-another-crack-at-us-ev-market-with-help-fromgm
 The importance of Reverse Logistics in your supply chain. Stephen Gould. (2022, February 23).
https://www.stephengould.com/reverse-logistics/