Purchasing and Supply Chain Management Essay

1769 Words Apr 22nd, 2010 8 Pages
Purchasing and Supply Chain Management

Assessment 1
Nessa’s Bar Report

Course Code: BS1D75
Student Number: 08154619, 09046100, 09030883, 09046577, 09047735

Contents

Page
• 1.1.1 Problem – Poor Organisation on Purchasing and Supply………..
• 1.1.2 Solution - Poor Organisation……………………………………….
• 1.2.1 Problem - Purchasing Policy Procedures………………………….
• 1.2.1 Solutions - Purchasing Policy Procedures…………………………
• 1.3.1 Problem - Poor Management……………………………………….
• 1.3.2Solution - Poor Management………………………………………..
• 1.4.1 Problem - Costs/ Expenses………………………………………….
• 1.4.2 Solution - Costs/ Expenses…………………………………………..
• 2.0 Recommendations……………………………………………………..
• 3.0 Conclusion…………………………………………………………….
• 4.0
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Some suppliers expect cash on receipt of goods and this can cause a cash flow problem. Negative word of mouth may be passed around trade fairs or board meetings, which will have a negative impact on suppliers considering entering in to business with `Nessa’s Bar’.

1.2.2 Solutions - Purchasing Policy Procedures
A solution to this problem could be a change in the purchasing procedure of the company.
“In a mechanistic structure, authority is centralised at the summit of the managerial hierarchy and vertical authority is use to control human and material resources. Mechanistic structures operate most effectively in stable environments.” (Lysons, P158)
A management structure needs to be established in which everyone understands their role within the company. Also a system for dealing with paperwork needs to be organised so that a good relationship can be developed between the company and its suppliers.

1.3.1 Problem - Poor Management
The company wastes a great deal of time on low value goods. Security is very expensive but necessary. The bar employs its own cleaning staff and purchase cleaning materials as needed but these disappear from the stockroom as there is no inventory method in place to control the use of these items. All members of staff have access to the stockroom and as there is no organisation there is no
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