Processes | Procurement | Warehouse
Overview
Synchronize the procurement of distribution to ensure that customer delivery requirements are met whilst achieving efficient transport operations. Typical activities included in this sub-dimension are - Contract Management and Compliance; Invoice and Payment Process; Performance Management.
Assessment Questions
Select the maturity level that best describes the warehouse procurement process. *
LEVEL 1: Significant proportion of total warehouse and 3PL sourcing occurs outside of procurement management or influence. LEVEL 2: Procurement examines historical spend, gathers forecasted spend, and goes to market with aggregated spend and business requirements. LEVEL 3: Cross-functional
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Warehouse services are centrally sourced with access to supply market intelligence. There is visibility to spending, compliance & performance. Resources, best practices, skills, & expertise are shared.
Select the maturity level that best describes the warehouse procurement technology. *
LEVEL 1: No use of enabling technology in the management, administration and execution of contract functions. LEVEL 2: Use of technology enabled applications are limited to basic functionality (Contract Repository, Document Mgmt. Sys. ). Various components of technology enabled landscape (Authoring, Redlining, Negotiation, Sourcing Execution, etc., ) are not available or have not been enabled/configured for use. LEVEL 3: Formal strategy for Contract Lifecycle Management is in place but not actively executed or administered. LEVEL 4: Established governance and controls framework, enabled thru use of integrated tools and functionality (e.g., workflows, alerts, etc.). LEVEL 5: High use of technology enabled applications across all functions (Contract Authoring, Negotiation, Document Management, Sourcing Execution,
Found in the case study entitled, Promotion from Within at Citrus Glen, is a staffing process concern. The Citrus Glen Company, based in Florida, is a juice producer that supplies orange and grapefruit to food processors, grocery stores, convenience stores and restaurants in the United States. With rapid growth over the last few years, the HR vice president, Mandarine “Mandy” Pamplemousse, has been worried about how to staff the ever-expanding array of positions for Citrus Glen. Her concern is how to hire and promote enough individuals who are qualified for the needed positions. When Mandy is trying to staff internally, she uses a contractor based in Charlotte, NC called, Staffing Systems International (SSI). When positions become available that are appropriate to staff internally, she sends a group of candidates for the position to SSI to participate in the assessment center. The candidates are in the assessment process for three days. Mandy receives the results with recommendations, a few days after
Information outputs – They order massive amounts from manufacturers. Bulk packages sell larger quantities to consumers. The huge warehouse clubs eliminate the need for actual warehouses. At the same time, they reduce the need for handling. This greatly enhances distribution efficiency. Their large-scale membership base makes them strong.
The merchandise is imported through several ports including of Los Angeles, Houston; New York; and Savannah, Ga. The company utilizes strategically placed distribution warehouses in Texas for storage and shipment of items to their district stores. To manage the availability of supplies the organization utilizes Oracles Transportation Management system which offers a single platform of which to manage all transportation activities throughout their Supply Chains. The use of the software creates flexible process automation within logistics network worldwide. The software is used in conjunction with Oracles other products that integrate accounting, marketing and sales functions into one program. By including these functional areas in their management system the company is able to monitor their total operating costs and
The organization has five hierarchical levels, consisting of a set of divisional/regional managers, and three additional levels that exist in the plant. The plant organization consists of three levels: the plant manager, the seven area superintendents, and the front line people. The two cofounders decided “to avoid creating bureaucratic organizations resembling the government” because of their bad experiences working for the government. As a result, the structure of AES is highly decentralized. This allows managers and employees to both take ownership of their roles and have input on the success of the company. It also allows individuals to develop leadership skills for potential promotions. This flat management structure encourages high employee involvement in all decision-making opportunities.
Founded in 1907 as a messenger company, United Parcel Service has grown into a world renowned provider of specialized transportation and logistics services. This multi-billion corporation enables and manages the flow of goods, information, and funds to over 200 countries and territories around the globe (UPS.com, 2013). Air, freight, oceanic is just a few of the modes that UPS uses to move the flow of goods around the globe. The company structure of UPS entails operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. It’s just about an everyday occurrence to see an brown UPS truck on the road as we go about our everyday lives, the U.S. Domestic Package operations are comprised of delivery of documents, packages, and letters around the United States. The International Package operation delivers specifically outside the United States. Providing deliveries to the world’s major business hubs up to three times a day, UPS can deliver packages to at the best time possible for their customers. UPS has teamed up with the U.S. Commercial Service, an agency of the U.S. Department of Commerce, to help customers get started exporting or increase their sales to new global markets (UPS.com, 2013). Partnering within a supply chain can prove to be very important in the success of the overall supply chain. Communication within a supply chain that flows freely between partners reduces in-efficiencies such as excess inventory (bullwhip effect), and lost profits. The Supply Chain & Freight operation within UPS entails forwarding and contract logistics operations and UPS Freight. As a freight forwarder they organize shipments from various sources to their final p...
Ferdows, K., Lewis, M., & Machuca, J. A.D., 2003. Zara. Supply Chain Forum: International Journal, 4(2), 62-66.
It is simple to see logistic and supply chain networks in action such as warehouses storing, shipment transporting products and customers consuming those products and services. This is determined by how the management of the company plans its upcoming activities and transforms their inputs into outputs efficiently to the global market. Therefore, this is no exception for a high-end automotive component, industrial products and automotive manufacturer like BOSCH, Canada. This report will outline the supply chain flow and purchase in BOSCH Canada. However, there are several challenges such as failing to manage inventory well and the inaccuracy of demand forecast faced by the company. Therefore, several recommendations are discussed within this report in order to expand the business widely.
The article that I choose is called “Managing Supply Chain Inventory: Pitfalls and Opportunities” by Hau L. Lee and Corey Billington. This article was published by MITSloan, Management review, and it caught my attention because it explains indebt what most companies do in order to turn raw materials into intermediate and finished product. Along the way it also explains the pitfalls the supply chain management has that managers often don’t realize.
Technology factors relate to the system software, support for legacy systems and the IT infrastructure on which the system will be put on. Information systems are powered by information technologies which need to last throughout the system development life cycle.
2) Business level: This level includes the sub position or Head of department under the corporate level.
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
In this regard, supply chain management is the actions that a company does to influence the way its supply chain is operated to maximize profits and cut costs, among other desirable effects (Buxmann et al. 2004). Traditionally, companies have considered activities, such as procurement, maintenance, distribution, and inventory control, as the most important elements in logistics. According to Buxmann et al. (2004), supply chain management not only takes into consideration traditional logistics, but also incorporates customer service, marketing, finance, and product development into the supply chain. Supply chain management views organizations, their products, and the supply chain, as one entity, and aims at understanding, managing, and controlling the various activities that enable the smooth flow of goods or services to the customer (Buxmann et al. 2004).
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...
...ns and material necessary that need to be consumed during the business processes. The biggest part of this activity is contract and orders related to natural gas supply, purchase and modernization of pipelines, and machinery required for maintain good condition of pipelines. Company needs to predict when and what amount of natural gas needs to be transferred to meet consumer demand. Another important task of procurement is purchase of compressors required for steady flow of natural gas to end customers and the maintenance equipment required to ensure high efficiency and dependable. It is required for the company to properly plan all supply orders to lower variable costs and increase profits. Each activity level requires supply of specific materials unique for the processes and operations, which shows that procurement is present in every single stage of value chain.
There are two main phases that are important in the movement of materials: material management and physical distribution. Materials management is the timely movement of raw materials, parts, and supplies. The physical distribution is the movement of the firm’s finished products to the customers. Both phases involve every stage of the process including storage. The ultimate goal of logistics is to coordinate all efforts of the company to maintain a cost effective flow of goods.