TEXISA SA is a pioneering company and a leader in the textile industry. The company has been created in 1955, and is located in the North of France. The group manufactures yarn in cotton, polyester, viscose, rayon, hemp, polyester-cotton and all other types of mixtures. The purchasing department has to procure raw materials and packaging materials.

You are in charge of purchasing industrial packaging in TEXISA group purchasing department. Many companies such as TEXISA took advantage of the economic boom of the 2000s to ensure their growth in buying out their competitors. Today challenge is to consolidate and manage purchases and maverick buying in all factories that were historically, managed according to a decentralized model. Certainly, this organisation allows more autonomy to business units and individuals who bring local expertise. It also has the advantage of ensuring agility particularly with local suppliers. On the other hand, decentralization makes it difficult to align BU objectives with those of the head office. It is not possible to take advantage of negotiations carried out at group level.

Finally, it limits the coordination of factories, the sharing of information and good practices.

TEXISA has developed a decentralized but aligned group purchasing function, responsible for managing the purchases of the categories included in the product classifications (i.e., the raw materials used to calculate unit manufacturing costs) while delegating site-specific responsibilities. The industrial packaging category is part of this type of production purchase. Packaging purchases can be classified into 2 categories: primary packaging mainly used for protection and presentation of the products and secondary packaging for bulking, storage and transport ( also named as packing material)... Those categories have not been piloted for almost three years, your role consisted in carrying out an audit of the category then propose actions to develop sustainable procurement

Categories	Cost of purchases 2014 in K	Primary Packaging	Secondary packaging	Number of suppliers*
Cardboard tube	2857	X		5
Plastic wrap (1)	1846	X	X	12
Pallets	1303		X	14
Caps	1044	X		3
Other material (2)	1020		X	18
Cardboard box	851		X	11
Tape	287		X	17
Kraft paper wrap	306	X		5
Labels	102		X	8

Comments:

1. Plastic wrap: the category includes PE and PP wrap. Stretched wrap is used for transportation, to maintain cardboard boxes on pallets, it represents only 21% of the purchases of this category. Therefore, shrinked wrap or thermoformed foil is designed to protect the textile, on the tube, it contributes to 79% of total expenditures of this category. All suppliers can produce stretched or shrinked wrap.
2. other materials: include 3 sub-categories with 46% of the expenditures for polystyrene corner protectors to absorb shocks during transport (5 suppliers), 29% for airbags ( 3 suppliers)

and 25% for various items such as plastic straps, plastic and paper bags ( 11 suppliers)

3. total suppliers portfolio: active and potential suppliers

One of the suppliers for cardboard tubes, HSSAAC promotes eco-friendly packaging. Other suppliers follow this path towards sustainability, as all companies have to comply with EU packaging directive and French government has strong objectives to reduce waste in packaging. As TEXISA SA wishes to implement a sustainable procurement approach, a several tools should be developped to assist buyers integrate sustainable development into the procurement process.

A long industrial tradition in the heart of Bordeauxs vineyards Founded in 1928, HSSAAC is one of the leading producers of cardboard tubes, cardboard cores and angleboard in Europe and in Canada. HSSAAC is a privately-held group with global strategy, the head office is situated near Bordeaux in an 18th century mill. Todays world is dominated by the increasing need for renewable sources of energy, energy-savings and for the reduction of carbon emissions. HSSAAC has adopted a strategy of sustainable development through an active participation in the protection of the environment

Environment-friendly products All boards, cardboard tubes, corner board, fibre drums and cartridges are recycled and recyclable, designed to reduce the use of natural resources and to enhance recycling. HSSAAC emphasizes the use of recycled board or Kraft from sustainably managed forests where the natural resources are constantly renewed by planting more trees than are felled. Increasingly high-performance packaging Thanks to its technological know-how in the production of board and its derivatives, to its expertise in the processing of board, HSSAAC continues to develop high performance products with a constant reduction in weight. By reducing the use of raw materials to produce cardboard tubes, angleboard, and fibre drum, HSSAAC contributes to the preservation of natural resources.

Questions:

1. Propose a new segmentation depending on the contribution to expenses and product functionality. Calculate the weight of each family /category/ sub-category.

2. Position in the matrix only one category: AIRBAG, explain how you measure the 2 axes and define a scale for each axis, explain what strategy to adopt

please assist to answer ABC analysis these 2 questions.