I need help to writing the Case Study Assignment about AFLI : Issuing the RFP Part 2. This is group assignment. My part of this assignment is Section 3: Vendor Instructions. We already completed part-1 (fille attached: File (AFLI Assignment Part -1- Completed.docx). . Please review all attachments for a clear layout of the assignment.

AFLI PART1:

1. After reading the given case study this was the following needs were agreed upon by the group:

1. Purchasing new fleet equipment

They need a new MHE fleet because the actual fleet is costly affecting DC productivity and generating employee dissatisfaction. Some of the needs regarding these issues are:

• Measure fleet utilization to improve productivity;
• Figure out if it is needed to separate the DC and manufacturing fleet;
• Decide about outsourcing manufacturing operations;
• Figure out the TCO (warranty, service, repair);
• Early involvement of the suppliers: finding new suppliers to improve bargaining power; getting advice about the equipment; talking to the equipment specialist to find good suppliers on the market for efficient forklift and lift trucks; forging a partnership.
• Meet users and frontline: Involve employees in the purchasing decision making, go to the warehouse and ride a lift car, talk to the machine's operators, explore their needs, understand their dissatisfaction, and develop new ideas to figure out what would make their life better.
• Talk to the finance team to check out the cost history to understand the budget and help to decide to buy new or nearly new equipment in terms of specifications.
• Identify commercial terms to understand and negotiate better MHE.
  1. Training to operate the MHE

• Expanding fleet lifespan, ensuring operator's safety, etc.
  1. Manufacturing

• Selecting efficient suppliers to ensure regular supply of raw materials with US and Canada.
• Keeping a good track of the orders which are being prepared to avoid delays.
• Proper maintenance and use of MHE to ensure it lasts long.

1. The influence of outsourcing production on the requirements for MHE may be broken down into the following categories:
   • If production is outsourced, this will reduce the number of goods brought into the warehouse, which will cause the MHE requirements to shift. Because the manufacturing process will have been outsourced, completed goods rather than raw materials will likely be sent to the warehouse. This will cause a shift in the sort of product stored there. As a result, there will be a shift in the sorts of MHEs that are required in the warehouse. If, for whatever reason, raw materials are no longer being delivered, for instance, then there will be less of a need for a forklift to unload trailers.

• It would positively impact the MHE needs by eliminating overhead costs as many American businesses have outsourced their manufacturing to avoid the high costs of maintaining a manufacturing unit in the country. Utilities such as gas, electric, and water and the upkeep necessary to operate production equipment are included in these overhead expenditures. Indirect labor, such as equipment technicians, quality assurance personnel, material handlers, and shipping and receiving personnel, are among the other overhead expenditures.
• If a manufacturing company considers outsourcing any of its processes, labor costs must be considered. One of the most expensive parts of any manufacturing operation is labor. Paying employees, a competitive salary and, for the most part, providing some form of employee health benefits is part of having people on the payroll. On the other hand, outsourcing labor costs does not automatically involve relocating production to a foreign country. Companies may outsource labor by hiring workers from temporary agencies rather than hiring full-time staff. Outsourcing labor offers the flexibility of increasing or decreasing staffing demands as needed and a lower hourly cost charged to a temporary employee than a comparably skilled full-time employee.

The warehouse operation will continue to be a part of the business. Thereby, the manufacturing and production of AFLI goods would be contracted out.

• Even if AFLI contracts out its production, the business will still need MHE to run its warehouse. The quantity and kind of goods kept in the warehouse will change throughout time, which will affect the kinds of MHE that are essential. For instance, if completed items are being brought in from production that has been outsourced, there will be less of a need to use a forklift to unload trucks.

1. Following are the suggestion for Rashid and Anton to involve the users in the procurement process:
   • Visit the DC and spend time there to understand how the MHE is being utilized.

• Have a conversation with the people engaged in directly handling the equipment. Learn about the issues and difficulties faced by them.
• Call a meeting of all the employees in the DC and inform them about the new procurement process happening. During this meeting, ask the employees to form a committee to efficiently communicate their responses and concerns to the management.
• Get feedback from the employees about the existing MHE used, including questions like how satisfied they are with the existing equipment. Also, ask if any employees contact the people or dealers who know this area.
• Ask for their suggestion if the equipment needs to be bought. Alternatively, present the items the management has shortlisted for purchase and get their feedback.
• Make sure that the employees' voices are heard.

1. Based on the given situation in the case study, the existing MHE in the distribution center will expire soon, and they will need new equipment for their material handling. AFIL needs two lift trucks that can work individually. Also, Manufacturing should have their forklifts for smooth working.

1. Industrial material handling equipment includes a wide range of vehicles, Forklifts, tools, storage units, appliances, and accessories involved in transporting, storing, controlling, and protecting products at any manufacturing, distribution, consumption, or disposal stage.

1. There are different types of material handling equipment; they are as follows: