Confronting Procurement Challenges Nairobi ' S State Corporations Essay

Organisations around the world are increasingly operating in very dynamic business environments. Among the areas that are being monitored is the way raw materials for production are procured and how the finished products reach the market and eventually the consumer. This paper will provide a review of published documents on strategic procurement in organizations by providing a critical analysis of the strengths and weaknesses of their findings. The paper will present the impacts of the findings of the reviewed articles on the activities of an organisation that operates in a business to customer industry. And also a supermarket will be used in this case.

An ideal SCM integrates all aspects of logistics in a rapid manner attempting to achieve the objectives by using who, what, when, where, and why (the 5Ws) for accuracy and success. The focus of this literature will cover the history, functions, modifications and future of SCM, while also considering the literature and preceding research that was conducted in each area. This paper will enhance the readers’ understanding of the SCM in general along with the process and concepts of the subject. It will also enable readers to apply aspects of SCM in their respective line of business. The literature for this review is relative, ranging from one to three years old. Organizations must understand that Supply Chain Management can increase the company’s EBITA (Earnings Before Interest Taxes Amortization) or decrease it if used properly. An additional benefit of an optimal SCM is optimizing time from production to customer, which can increase customer base when the industry notice speed of delivery to customers.

Chase, R. B., & Jacobs, F. R. (2011). Operations and Supply Chain Management, 13e. Boston: McGraw-Hill Irwin.

A Customized Textbook, Supply Chain Management SCHM2301, ISBN9781308037400 Copies are on reserve in the library

Russell, R. S., & Taylor,B. Operations and Supply Chain Management,8th Edition. Wiley, 2013-12-02. VitalBook file.

W.C. Benton, J. (2010). Purchasing and Supply Chain Management (2nd ed.). New York: McGraw-Hill Irwin.

Russell, R. S., & Taylor III, B. W. (2014). Operations and Supply Chain Management, 8th edition. Hoboken, New Jersey: John Wiley & Sons, Inc.

(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.

All projects involve the need to determine whether the project work will be done in-house, external to the organization (outsourced), or a combination of the two. This is called “make-or-buy analysis” and is an essential part of project planning, as well as a tool/technique integral to procurement planning

The Betapharm sourcing team needs to make an urgent decision whether products that are as diverse as raw materials (Malic Acid) and hotel contracts can be electronically sourced by using their already acquired ePass sourcing system. The aim is to find ways to better control costs and to remain competitive.

This paper will focus on the concepts of transformation in procurement practices for non- production & indirect functions while comparing & contrasting the impacts of the same in varied fields (Retail / Aerospace & Defense). The economic scenario since the late eighties forced companies to reduce costs to improve bottom-line profits. Although indirect procurement costs were considered as “fixed / insignificant” and much more inflexible than cost of direct good & working capital expenditures, they were one of the few areas in an organization that provided ample opportunities to reduce costs and improve bottom-line profits.

The level of internationalisation around the globe has grown throughout the years, with advanced technologies the ease and ability to work with foreign countries has also grown. However, firms do not simply interact with each other with no outside party involvement; the government can be seen to play a large role in conducting international business. Governments continuously have the responsibility to act in the manner that they believe is best for their nation; this includes decisions regarding protectionism, which may serve to aid domestic industries but simultaneously hinder international business. It can be seen that governments do not always act in their nation’s best interest and are corrupt which can serve to increase the risks and costs of entering an international business environment. While these are examples in which the government makes international business difficult it can also be seen that the presence of a government is instrumental in creating international business effectiveness, whether this be through their legal system or from trade agreements. This makes the role the government plays paradoxical; as their involvement generally increases the risks and costs of firms seeking to internationalise, whilst simultaneously playing a significant role in creating international business effectiveness.

In the globalization era, there are several major trends that affect to the roles of purchasing manager. As emerging markets assume a greater role in the global economy, the traditional demand and supply poles that have shaped global commerce over the last 50 years will change dramatically. More and more global company will have their purchasing managers based in China, India or Brazil. The procurement teams need to start developing expertise in local emerging market sourcing in China, Brazil, and India, as well as other developing economies. Sustainability is an essential strategy to business, especially the global company. Procurement function

It is known to us, “in each industry, the customer is god, is operator's food and clothing parents.” This tells us that customers are important to organizations. With the current intense competition in logistics nowadays, most companies can provide high quality goods, even are willing to cut down prices if reasonable. However, how can suppliers gain a competitive advantage when high quality is expected and price must be maintained at a level to generate a reasonable return? In our views, it is no doubt that how various supplier service activities are valued by customers, more specifically, that is, the ability of logistics

Procurement and Supply Chain Management (PSCM) presents the new paradigm in strategic and operational business management for the 21stcentury. By offering a cooperative and integrated model of the value-creation process in a cross-organizational perspective, it also places new challenges on business management methods and instruments used, in theory as in practice. In the field of materials management, the new PSCM perspective led to major changes in the methods used and in the emphasis of the different process steps. Presented here is the classical as well as supply-chain-based Procurement methods which compares them and draws conclusion on their use in theory and