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 ...
... middle of paper ...
...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
Groß, M 2012, Optimisation of procurement processes by the example Sanitärtechnik Eisenberg, 1st ed, GRIN Verlag, Munchen.
Khan, S 2003, ‘Supplier choice criteria of executing agencies in developing countries’, International Journal of Public Sector Management, Vol. 16 Iss: 4, pp. 261 – 285.
Monczka, RM, Handfield, RB, Giunipero, LC, Patterson, JL 2011, Purchasing and Supply Chain Management, 5th ed, p50-51, Joe Sabatino, Ohio.
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.
Russell, R. S., & Taylor, B. W. (2011). Operations Management: Creating Value Along The Supply Chain. (7th ed.). Hoboken, NJ: John Wiley and Sons, Inc.
Ewalt, D. M. & Hayes, M., (2002, Sep 30). Supply-chain management: Pinpoint control InformationWeek. Manhasset, 16-19
Operations Management continually studies methods to find the best supply chain processes to be able to serve each customer and each product at a given point in...
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Pieplow, T., Calhoun, S., &Daniel, D. (2012). Introduction to logistics and supply chain management. Athens, AL: Athens University
There are many characteristics that managers have to trade off in order to have the best supplier, the trade offs include quality, delivery and cost performance measures in the supplier selection process (Gonzales et al., 2004:197). The supplier selection process deploys a large amount of the firms financial resources. Therefore firms will most likely choose suppliers that offer the highest value to the organisation (Beil, 2009). According to Monczka, Handfield, Giunipero, Patterson & Waters (2010), supplier selection is a seven step process that needs to be performed when searched for the best
(2001), into five categories: Unacceptable suppliers, Acceptable suppliers, Good suppliers, preferred suppliers, and Exceptional suppliers a company can have problems with connecting categories with supplier relationship. With this sort of classification if all the bidding process goes through procurement in direct competition the co-operation and partnership of different categories differ from short term to long term. In this example also purchasing (procurement) plays a role of integrating different
Lee, H. L. (2000). Creating value through supply chain integration. Supply chain management review, 4(4), 30-36.
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.
Pieplow, T., Calhoun, S., &Daniel, D. (2012). Introduction to Logistics and Supply Chain Management. Athens, AL: Athens University
Jacobs, F. R., & Chase, R. B. (2011). Operations and Supply Chain Management 13th Ed. New
(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
In the modern context, purchasing strategies follow the concepts of both relational purchasing and performance. Modern purchasing strategies such as green channel suppliers, which is about creating close buyer-supplier relationships which enables the organization to obtain special discounts towards its purchases, obtain highly sought-after items, exchange of “mutually beneficial” information on new products, raw materials and trends (Monczka et al., 1998; Purdy and Safayeni, 2000, cited in Parikh and Joshi, 2005), the rise of E-procurement, where buyers can look for suppliers on e-procurement web sites, thus enabling the buying organizations to purchase at “volume discounts” and obtain “special offers” (searchcio.techtarget.com, 2016). Other forms of modern purchasing strategies include reverse auction, where the primary objective is to compete at the lowest purchase price (Purchasingauctions.com, 2016), Tendering where the organization
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.