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Importance of the purchasing cycle
An essay on the procurement process
Assignment on procurement
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" A purchasing manager should have a good understanding of the elements of the purchasing cycle. Explain the elements of the procurement cycle and assess its significance to the role of a purchasing manager ".
Management in any company must understand the art of obtaining products and services. The procurement or purchasing cycle considered as one of concepts of purchasing that taking orders and activities from suppliers and transfer it to the final destination and follows specific steps for identifying the need of the company through the final step of the contract admin. For any manager he need to know how to manage his company or his purchasing business of goods and services ,
So he applies what we called purchasing cycle which is " the plenty of time between two purchases and helps manager to achieve the highest percentage and activity of sale purchases ".
What is the steps for purchasing cycle ? What is the elements of the procurement cycle ?
1. Identify and define the need
2. Describe the need
3. Investigate , Evaluate and Select supplier
4. Prepare , place and issue purchase order or contract
5. Follow up the order
6. Receipt and Inspection
7. Distribute
8. Faulty consignments and Rejections
9. Audit the invoice
10. Contract admin
So , we need to explain carefully each element and how it helps
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They determine the quality , quantity and time at which the goods and services are needed interior customer. Then , we will go to explain description and mean that t the materials and apparatuses needs begin with the association division or in its stock control segment. They decide the quality , amount and time at which the products and enterprises are required inside client. The time , quality , quantity and right place are so important for any purchasing process even if small or huge
The expenditure cycle starts with a purchase requisition. When a department feels the necessity of acquiring something they fi...
In the case, Marks & Spencer and Zara, it discusses two business process designs that each company took. You first had Marks & Spencer, who had a more traditional approach. Their chain started of with the buying team, design, developers, merchandisers, technologist, suppliers, logistics, and lastly the store. Zara, however, comes up with a new innovative design. With this new design in effect the delivery of new collections only has a lead-time of 5 days. They were able to cut down this time due to the fact that products where mainly produced on Galicia.
“Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistic activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third parties service providers and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.’
In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.
An organisation is a deliberate arrangement of team consisting different personal identities to accomplish some specific goals and managers are the ones who hold the responsibility of mastering and placing them together to strive for that purpose (Robbins, Bergman, Stagg, and Coulter, 2008). Robbins et al. (2008) have stated that managers are people who coordinate and oversee the work activities of others so that the goal is accomplished effectively and efficiently. Managers usually possess qualities such as having strong communication skills, flexibility, imagination, enthusiasm, problem solving skills, and of course the desire to be a great leader (Phdinmanagement.org, 2014). The structure of management conducted by a manager is often influenced by the four functions introduced by Henri Fayol (planning, organising, leading, controlling); how Henry Mintzberg’s management roles play in the organisation and also the three essentials management skills proposed by Robert L. Katz (Robbins et al., 2008).
A manager plays a pivotal role in steering the success and failure of the organization. As a budding manager, I wanted to get an insight about the daily activities of a manager and learn about their ‘typical day’. Therefore, an interview was scheduled, where the manager shared her views and gave invaluable advice on becoming an effective manager. This helped me in integrating the management concepts taught in the class and its implications in the real world.
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,
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.
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
This chapter deals with literature review on the study variables in a buyer-supplier relationship. And focus on how trust, adaptation, commitment, communication and cooperation been selected as variables that will affect buyer’s satisfaction level.
To cater to customer needs. To keep in mind the complications that arises in different situations and handling it. Teamwork and proper service, internal strategy and proper communication.
The world of business has undergone radical and dramatic changes in the last decade changes that present extraordinary challenges for the contemporary manager. A manager is an organizational member who is responsible for planning, organizing, leading, and controlling the activities of the organization so that the goals can be achieved. According to a widely referenced study by Henry Mintzberg, managers serve three primary roles: interpersonal, informational, and decision-making. Management is process of administrating and coordinating resources effectively and efficiently in an effort to achieve the goals of the organization.
First and foremost, effective managers are of course, required to have the basic management skills in order to be able to manage an organisation. Any managers has to possess certain technical skills which allow them to perform specialised task, particularly those first-line managers as they spend more time helping employees to solve work-related problems and they are mostly involved in supervising individual performance and instructing subordinates, for instance, ensuring that the products and services are being delivered to customers on a daily basis. (Robbins and Coulter, 2005) In other words, managers are required to possess "the ability to utilise tools, techniques, and procedures that are specific to a particular field." (Lewis, Goodman, and Fandt, 2004:12) In fact, managers are the first to look up for whenever employees encounter problems. (Griffin & Ebert, 2004)
(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
function, managers need to analyse how activities and resources are to be grouped and carry out plans successfully (Bartol 2007). A manager have to understand their ability to manage the lower level employee which is the most valuable of the company as they are the key of output and implement in the planning. Then manager will coordinate the jobs between authority and responsibility that is to define the role position of them (MSG 2012).