Issues and criteria for selecting suppliers

Running Head: Assessment 2: Individual Assessment
ASSESSMENT 2: INDIVIDUAL ASSESSMENT

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Assessment 2: Individual Assessment
Table of Contents
Introduction................................................................................................................................3
Issues and criteria for selecting suppliers...................................................................................3
Appropriate ICT for operations related to purchasing...............................................................4
Purchasing cost analysis.............................................................................................................6
Conclusion..................................................................................................................................7
Reference list..............................................................................................................................9

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Assessment 2: Individual Assessment
Introduction
The main purpose of this essay is to analyze the effectiveness of different aspects of
purchasing management. These aspects include criteria for supplier selection, ICT for
purchasing process and purchasing cost analysis tools. Procurement is a basic functional
operation, which impacts on the cost of a product. Profitability of a company is decided by
the process of purchase management. In this essay, a local retail firm in Singapore is chosen
to analyze the aspects and recommendations is given to improve the aspects.
“All watches” is the company that is chosen to fulfill the purpose of this assignment.
This firm was established in 1984 in Lucky plaza, Singapore (Allwatches.com.sg, 2020).
They sold different watch products of 50 international brands. This includes rado, tag Heuer,
omega, mont blanc, and many others. This organization strives to provide luxuriously and
branded watches by offering a cozy environment at their stores. Among the top competitors
of this company, Seiko, cortina watches and Ventus watches can be categorized. The goal of
this company is to be a preferred luxury and mid-luxury watch retailer for the customers in
Asia and beyond by providing trusted service. Different suppliers like Seiko, Casio ad orient
are entering in the supplier market of this country. However, many suppliers are providing
online selling options that create a threat to retailers.
Issues and criteria for selecting suppliers
Several criteria are there that need to be considered while selecting suppliers. All
Watches have established a good reputation. The purchase need of this company is associated
with its brand image. They need to get products that can satisfy the needs as well as
expectation of their customers in terms of quality.
They need to consider the criterion of value for money in case of selecting suppliers.
As mentioned by Haekal & Setio (2017), quality must be checked while purchasing a product
before checking its price. All Watches needs to balance between several facts including

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Assessment 2: Individual Assessment
reliability, cost, service, and quality while paying a supplier. It must be checked that the
target suppliers are able to deliver quality products consistently. On the other hand, it is
important to assess the delivery speed of suppliers as it can directly impact the satisfaction
level of customers. All Watches need to select suppliers who are able to deliver products on
or before time. Flexibility is another criterion that needs to be checked while selecting a
supplier. As mentioned by Mathiyazhagan, Sudhakar & Bhalotia (2018), the purchasing
behavior of customers is changing over time and a flexible supplier can help All Watches to
cope up with this trend. The financial stability of suppliers must be checked as it indicates
the capacity of suppliers to deliver orders. Moreover, suppliers must be eager and
enthusiastic to communicate directly with All Watches at any time.
Suppliers may misrepresent themselves while communicating with organizations
for the first time and it is an issue that can be faced while selecting suppliers. According to
Trapp & Sarkis (2016), the management of companies needs to assess the eligibility of
suppliers by verifying their past reputation and business deals. Suppliers may not be green
suppliers and this issue may impact the customers. At present, there are many customers,
who prefer to purchase products that have been taken from green suppliers. All Watches need
to assess the origin of products that will be delivered by their selected suppliers. The
communication gap may be considered another issue that can be faced by this company
while selecting suppliers. They need to evaluate the words of customers through verifying
supporting business documents provided by suppliers. For example, they can ask for
documents that can support the ability of suppliers to deliver products on time. It is essential
for providing the value to the time of customers through this approach.
Appropriate ICT for operations related to purchasing
The purchasing goals of this retail firm are also pursuing innovation and leveraging
technology. The application of proper innovative technology such as ICT can help this firm