Procurement Process in Small or Micro Enterprises Essay

Procurement Process in Small or Micro Enterprises Essay

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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.


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.

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