Sourcing Strategies of Genting Group

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allowed Genting Group to automate the sourcing lifecycle such as search qualify suppliers, develop sourcing strategy, negotiate agreement, and manage supplier performance through communicating with Ariba’s cloud-based community (Business wire 2009). However, for trade to be initiated with Genting, the supplier must first register a Ariba Commerce Cloud account (Appendix 1). Ariba provide electronic catalogs software for supplier and buyers to establish their catalogs respectively. The virtual bidding will be carried out fairly as all request for quote and request for proposal must first be submitted through the Ariba’s system prior having any decision made. Later, the suppliers can enter biddings through English auction in which Genting Group will deal with many suppliers (Appendix 2). Suppliers can revise or decrease the price of bids before the time of bid event closes as lowest bidder can win the trading business with Genting Group (Appendix 3). Lastly, the transaction done through the electronic marketplace and the physical products will be delivery according to the delivery agreement stated (ITW, 2013).

3.3 Joint-venture

Genting Malaysia Berhad have several joint venture (JV) agreements with different established companies that even stretches across different countries in its international development efforts international while yielding better profits. Two most prominent joint venture agreements that Genting Group have initiated involves the oil palm plantations and real estate development.

In 2005, Genting Plantations Berhad went into a joint venture oil mill with Sarawak Land Consolidation and Rehabilitation Authority. Through this JV, the mill can further process 238,875 tonnes of Fresh Fruit Bunches (FFB). Such cooperation allowed Genting Plantations Berhad to yield a better result which is; an increased of 9% compared to previous year based on the Genting Berhad Annual Report (2005).

Besides that, Genting Plantations Berhad also expanded its business internationally through joint venture agreement with Sepanjang Group in Indonesia on June 2005. The purpose of the Genting Plantations Berhad’s JV with Sepanjang Group is to develop and obtain additional 98,300 hectares of vacant land at Ketapang and Kalimatan for palm oil cultivation and it is also used to develop the oil mills (Genting Berhad Annual Report, 2005). In addition to increase profits, Genting Group also further invested through a JV with U.S. based Synthetic Genomics Inc. at 2007; to set up a world-class centre of excellence in genomic science in Malaysia (Genting, 2014).

Apart from plantations, Genting Group also has a joint venture with Simon Property Group (SPG); the largest real estate company in U.S (Simon Property Group Inc., 2010).The JV agreement with Simon Property Group was set in motion to establish a 175,000 square-foot upscale outlet shopping center; which is known as Johor Premium Outlets to serve the South East Asian market. Johor Premium Outlet is now one of the famous shopping district for famous brands such as Louis Vuitton, Coach and Nike.