Procurement and Material Inwards in a Flavour Manufacturing Company: A Case Study on Process Mapping, Risk Identification, Vendor Evaluation, and Digital Transformation
Wagh Krishna R.
International Agri-business Management Institute, Anand Agricultural University, Anand, India.
Prajapati M. R. *
Department of Financial Management, International Agri-business Management Institute, Anand Agricultural University, Anand, India.
*Author to whom correspondence should be addressed.
Abstract
Procurement and material-inward processes in specialty flavour manufacturing are operationally critical, yet their process-level risks, vendor governance, and digitalisation requirements remain insufficiently characterised in the supply chain literature, particularly in emerging-economy contexts. This study presents an integrated, multi-method framework applied through an in-depth case study of an Indian subsidiary of a globally recognised natural flavour extract manufacturer (referred to as the Case Company). Four analytical methods were combined: cross-functional swimlane process mapping; Weighted Average Mean (WAM)-based risk prioritisation across eleven identified procurement risks; an Analytical Hierarchy Process (AHP)-PROMETHEE multi-criteria vendor evaluation; and a gap-based ERP digitalisation roadmap. The findings identified three Very High risks: the absence of a quarantine area for incoming materials (WAM = 4.6), poor pack-level batch traceability (WAM = 4.4), and single-person dependency in procurement operations (WAM = 4.3). AHP analysis assigned the highest vendor-selection criterion weight to Document Availability (42.93%), reflecting the importance of regulatory compliance in this sector. PROMETHEE ranked the preferred cocoa extract vendor with a net outranking flow of Φ = 0.6115. A five-phase, 18-month ERP roadmap translates the risk findings into digital interventions. The integrated framework provides a structured approach to supply chain risk management and MCDM, together with practical guidance for procurement transformation in compliance-intensive food-ingredient manufacturing.
Keywords: Supply chain risk management, procurement process mapping, vendor evaluation, ERP digitalisation, flavour manufacturing, emerging economies