Purchasing Cycle
Introduction
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.
First of all we are going to define the purchasing cycle. Purchasing cycle is frequent buying design of companies in specific industries where purchasing order are issued after an unchanged number of days from the last purchase process. Management in any company must understand the
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Description of the need of the purchasing cycle.
Description means Inform potential suppliers of all the needs and demands of customers or users in the best possible way and style in order to clarify everything in suppliers’ minds in order to provide a better picture of the product or service required. And so there are classifications for the need, there are categories of description; there is description by market grade or the industry standard, the purchasing managers give the suppliers their observations on the product or service required like if they want the quality good, bad or super quality.
There is description by brand, as if the managers want specific brand or wholly new brand. A description by specialization, the purchasing managers must give “the to do list” about the product or the service required as it must do what the users or customers want it to do for example as an employ’s job in a company, there are responsibilities and missions he must does as well as the product required. Description by performance characteristics, this means the performance quality must be as the user want and it also depends on the user’s financial state. There is description by prototypes or sample, the manager give the supplier an initial design of the required product to make him follow or trace the steps of formation of the initial design to make the final product like it is in the user’s mind. For ex: the business must specify the necessary product by using identifiers such as color or
W.C. Benton, Jr., 3rd Edition, “Purchasing and Supply Chain Management.” (2010). Text. 2.
The presentation of a job description is important and Sainsbury's job description is always neatly presented. A person specification sets out the qualities of an ideal candidate whereas a job description defines the duties and responsibilities of the job. It describes the characteristics and attributes which a person needs to be able to do the job to the required standards. A person specification is normally set out under these headings: * Physical make up- what should the job holder look and sound like *
The expenditure cycle starts with a purchase requisition. When a department feels the necessity of acquiring something they fi...
Once customer requirements have been captured and analyzed, information of customer requirements needs to be translated into functional specifications and design. This activity involves marketing function, product designers and engineers.
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).
...product that suits that needs of the customer is part of the planning process. To do this, customer needs can be speculated and then an information gathering plan is developed and then the information is gathered. The results should be analyzed and checked for validity. Based on the conclusions, the product changes can be made. Customer feedback can also be used to make product improvements.
In the following report, we will analyze different dimensions of customer needs and discuss how to satisfy customers.
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.
The goods are of a description which the sellers ordinarily supplies in the course of the business.
(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
- inform themselves on specifications, requirements, capabilities of product or service - part of consumer’s responsibility
...change production planning and control, and supply and payment process, when firms provide customized products.
Job description is a sum up of a job that is in the recruitment, in this description, employees will write down the job title, so applicants will able to understand what the job is about. Also, the department, applicants should know where would they work if they were going to work in that organization. Next i...