Firms should seek to “get their own house in order” before seeking to manage suppliers

Revisions for the 7th edition by Eric D. Yordy, The W. A. Franke College of Business

Procurement is the act of obtaining or buying goods and services. So it’s the process an organisation uses to buy the products or services it needs, from other organisations. So procurement department for Tesco is essential in order for them to be able to sell products and offer a service to their customers. Without the good and services it needs Tesco would not be able to operate so it’s essential the procurement team do a good job.

Westminster Company is a giant Global manufacturer of health products whose brand has been recognized by the world. As the company they have three different operations which produce and distribute different product lines. Their main strategy on which they are working and which is a major success for them is decentralized management. Now they are re-evaluating their traditional supply chain strategy because the company is getting too much pressure from their large domestic’s customers and global customers. Now the company has to study on

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Although competitive bidding will continue to be used, especially in the public sector, to ascertain market prices for non-strategic items, many of these items will be outsourced to third-party buyers or consortia to conduct the bidding. Moreover, organizations will continue to purchase most non-strategic products and services under master contracts, some of which will be negotiated by consortia that have leveraged and buying expertise. A trend is expanding for the continued use of third-party purchasing by primarily private sector firms pursuing all forms of competitive advantage possibilities.

The operation manager must insure informed purchasing decisions are made and to improve procurement effectiveness by providing purchasing expertise and

Sources of information:Bevan J, Dransfield R, Coupland-Smith H, Goymer J and Richards C – BTEC Level 3 National Business StudentBook 1 (Pearson, 2009) ISBN 9781846906343Bevan J, Goymer J, Richards C and Richards N – BTEC Level 3 National Business Student Book 2(Pearson, 2009) ISBN 9781846906350Coupland-Smith H and Mencattelli C – BTEC Level 3 National Business Teaching Resource Pack(Pearson, 2009) ISBN

Labor-intensive purchasing process is an expensive and low value-added work. Currently, the company has no centralized management to perform strategic purchasing. It was a concern that whether employees would come up with speed to the dramatic changes coming from re-engineering. Some of multiple hand-offs between department look complicated and redundant. An example of solution would simplify the process from demand planning to raw material planning to be implemented by less employees within a close group. In addition, the organization should be re-designed to a more “customer oriented” to align with the turnkey

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Businesses have numerous key departments which keep the structure running appropriately and supports the business to build and embellish in all worldwide markets. This report will consider what the key departments do for the business, in addition, this report will enlighten the research procedure used and significant complications which have been encountered throughout.

Batsleer, J. et al, (2001), _B551 The Manager's Help File_, The Open University Business School_,_ Milton Keynes.

A crucial component of the supply chain is to have correct and accurate information as long as an open line of communication in case assistance is needed. Another crucial role in a successful supply chain is the role of management. Management is able to help things run smoothly and assist in any problems that might occur. The advancement of the business world has caused a change in how managers operate. Management can be in charge of overseeing a large number of suppliers and consumers at any given time. They are responsible for managing the supply chain and ensuring that the consumers get what they need. A firm’s good supply chain management is crucial to the success of the business and how they operate. A firm has to improve the flow of information through the chain, accurately depict business models, and efficiently manage the production, development, and delivering of goods. A successful supply chain is able to work seamlessly with other parts of the business such as sales and marketing, engineering, business development, and program management. A good supply chain management can be the difference for the success of all parts of the business.