The two main products sold of the supermarket are Indomie which is instant noodle and Pokka green tea. For Indomie, the supplier is from Carrefour, which the business imported from Indonesia whereas Pokka green tea’s supplier is Intradco which operating in Australia. These suppliers usually deliver the products to the business 3 three times a week to keep maintaining the stocks. Regularly the products arrive with around 15-20 boxes. For the payment of these products, usually manager pays in every last month to make effective and efficient in the process of purchasing by using check. Also the manager has a contract to both suppliers. The contract is compulsory to maintain mutual trust between both parties and also maintain the time delivery of the products. By that way, manager can keep tracking on the supplier performance.
Comparative Procurement Process
Three of these organisations are small scale of businesses and they are in different market. In supply chain concept, Business 1 and Business 2 are in the same position, they are both retailer. In contrast Business 3 is the wholesaler. The first step of procurement process that applied by three organisations is identify the requirement of their major products. At this stage, other department in these three organizations identify their requirements to the procurement department and normally they will provide description like quantity, requirement date, and preferred vendor. This first stage is critical because any faulty might costs the organization.
The second stage of Business 2 and Business 3 is to select and identify their supplier whereas Business 1 must first clarify with the owner and then supplier identification is taken next. In the next stage Business 2 and Business ...
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...ogistics Information Management, Vol. 11, pp.28 – 37.
Wisner, JD, Tan, KC & Leong, G 2009, Principles of Supply Chain Management, 2nd ed, South Western Cengage Learning, Ohio.
Appendix
Reference List
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Humphreys, P, Mak, KL, McIvor, R 1998, ‘Procurement’, Logistics Information Management, Vol. 11, pp.28 – 37.
Wisner, JD, Tan, KC & Leong, G 2009, Principles of Supply Chain Management, 2nd ed, South Western Cengage Learning, Ohio.
Burt, D., Petcavage, S., & Pinkerton, R. (2010). Purchasing descriptions and specifications. In Supply management (p. 129). New York, NY: McGraw-Hill/Irwin.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Boyer, K. K., & Verma, R. (2010). Operations & supply chain management for the 21st century.
It governs in a way to supplying Just-In-Time inventory, management services that includes procurement, repair, transportation, delivery are warehouse management. For example, if the customer decided to purchase more parts outside the contract with the company, it would be exercising and alternative which again is outside the contractual agreement. The company has the latitude in vendor selection and the negotiating responsibility of pricing with vendors. This should be considered a flexible alternative that can be lucrative to the company, as they would benefit from bonuses noted in the details of the case study. In this case, it would be necessary to record all transactions to ensure accuracy in the amount of bonuses and transparency.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Since mid-90, technology changed procedures for evaluating supplier’s relationships. Before technology, Suppliers relationships used to be an isolated activity disconnected from others companies’ activities highly influenced by conflict of interest. But when technology started to provide accurate data, companies begin the focus on inventory management activities increasing the importance of procurements departments’ evaluation as a way to reduce supply chain cost. With data, procurement can evaluate suppliers and their benefits for the company. In today business environment, the company dilemma is evaluating if the supply chain should be vertical, full outsourced of mix, considering industry maturity impact and price competition (Chopra & Meindl, 2007; Slack & Lewis, 2011).
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Purchasing process is the process of buying the right material, at the right quantity, at the right moment, at the right price and from the right supplier ( Heinritz et al, 1986). It can also be defined as the way an organisation behaves towards it suppliers, as suppliers are the pillar of strength for all organisations at large. According to We...
This paper examines the legal aspects of procurement management and specifically how procurement management can be used as an effective tool for the overall management of a project. This paper focuses on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects of that pertain to the Federal Acquisition Regulations (FAR). A summation of the company’s position in relation to a given supplier (provided the company decides not to procure all of the material in a contract) will be examined along with how that position is strengthened by understanding the legal aspects of procurement management. Finally, the paper will analyze how the project manager is supported by the contracting management function.
Pieplow, T., Calhoun, S., &Daniel, D. (2012). Introduction to logistics and supply chain management. Athens, AL: Athens University
Step 6, evaluation and selection of a supplier: the evaluation stage of the process could involve the p...
My job at TCS has exposed to the various nuances of Supply Chain Management and therefore, I feel I can add value to my profession through a pursuit of this course.
We are going to talk about Procurement cycle, its elements; we are going to talk about each element in a specific way and its significance to the purchasing manager. Procurement cycle has 10 elements (stages) each one of them tell us about the importance of this cycle for the entire purchasing system in every company as there is no company do not need to deal with many types of purchasing systems (ways) in our advanced business world.
(2014) deduced that procurement performance can be assessed by focusing ondelivery,flexibility, quality, cost and technology. Optimal performance attainment is dependent onhow current suppliers`relationships aremanaged so asto ensure constant availability of needed quality supplies at the organization. This will ensure that sourced materials are indeed procured at the right costand atthe right time. Procurement performancestrives toenable improvements in the procurement process at the organizationso as to improve on qualitydelivery of firm products and servicesatleast possible time and
Public procurement also has an important impact on micro and macroeconomic aspects of the national economy and public finances. Proper public procurement system provides important end results, such as: a) ‘better value for money’ for the contracting authorities who thus create a climate of greater volume and better quality public services, b) a healthier public finances, which contributes to the quality of public provision of financial services, c) promotion of the preconditions for economic growth through the creation of a competitive public procurement markets and d) improvement of accountability for the use of public funds in particular through the promotion of the ability of contracting authorities for the quality implementation public procurement procedures (Mujevic, 2012, pp.