Aspects Of Final Integrative Statement
Added on 2020-01-28
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FINAL INTEGRATIVESTATEMENT
TABLE OF CONTENTSIntroduction .....................................................................................................................................31) The roles of procurement and supply in managing the area of expenditure underlining theinputs made by its stakeholders...................................................................................................32) Techniques that can be applied to the area of expenditure to enhance added value...............54. Measures taken to select effective suppliers .........................................................................105. Aspect of supply which require negotiation .........................................................................12CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................162
INTRODUCTION Supply chain management is the function of overlooking of raw material, finance andinformation as they proceed in a process from supplier to business concern to distributor toretailer to final customer. In further include coordination and integration of these flows bothinside and between the organisation. Further, supply chain management can be defined asstreamlining of organisational supply side functions to enhance customer value and to attain acompetitive benefit in the market (Miles, 2015). With the help of final integrative statement thesupply chain management plan can be effectively incorporated into business. It will also provideguidance to management regarding designing, planning, implementing, controlling andobservation of the functions of supply chain. It will further help in building net value byconstructing a effective and competent infrastructure. Further, entity will be able to take leverage of global logistic along with matching supplywith demand and calculating performance internationally. There are ample number of benefits ofsupply chain management system. Firstly, it will help in minimizing the wastage by makingoptimum use of supplies. It provide ways to firm to minimize overhead costs and delays intransportation using scientific approach (Johnson, 2014). In this report, various aspects of finalintegrative statement will be discussed. Further, roles of procurement and supply in governingthe area of expenditure along with input from stakeholders will be explained. The techniquesthat can be employed to the area of expenditure to enhance added value will be explained.Thereafter, inclusions that should be done in future contract will be discussed. 1) The roles of procurement and supply in managing the area of expenditure underlining theinputs made by its stakeholders.Procurement is the function of determining, acquiring, purchasing products, service orworks from an outside source. In simple words, it enable a company in purchasing products andservices that assist business in its operations. The procurement has crucial role in business as ithelp in sourcing raw material from suppliers around the world and bringing them into thecompany to facilitate the manufacturing of products for consumers (Anker Jensen and et al.,2012). It has been ascertained by many of the researchers that,entity incur more than two thirdsof its profits on purchasing inputs and other offerings. In this respect, even a little reduction inbuying price have a viable impact on revenue. Overall, it can be stated that with the help ofprocurement process, company can reduce the production cost and enhance the profit (Chick and3
Handfield, 2014). In this respect, it is important for business enterprises to select the suppliersthat are ready to provide best quality of products at low price. This objective can be furtherattained with the help of effective price negotiation between firm and its suppliers.Overall,company can use procurement and supply process to attain favourable business result byfocusing on commercial negotiation (Atkin and Brooks, 2014). This process will help business inselecting the supplier having proper market knowledge which is further advantageous forcompany. Procurement method help entity in studying the suppliers and marketplace to assurecompetitive agreements are developed and maintained (Chakravarty, 2014). Further, thisprocedure will help in resolving issues with suppliers. In this respect,company research the totalnumber of suppliers and select the one having strong market reputation, prime quality offeringsat fair price along with convenient location to avoid transportation cost. Its inception thatprocurement method help in developing and processing of a demand along with end receipt andacceptance of defrayal. The procurement method also help entity in doing the purchase planning.Therefore, only those products are purchased by company that are required so as to avoid extracost on business. Hence, appropriate procurement process help in focusing on the concept ofinventory buffers (Settanni, Parry and Goh, 2014). Therefore, organisation manage theirinventories in a manner that it trim down the holding costs while ensuring proper flexibility tofulfil the customer demands. Further, it assist firm to determine the standards of products thatmust be purchased only to maintain the quality benchmark. In this respect, the supply chainmanagement system also help in integrating quality techniques like quality management systemto amend the overall quality of functions. Thereafter, to maintain the interest of suppliers theymust be paid on time (Testa and et al., 2016). Hence, procurement process prepares entity toidentify viable sources of finance that can be used to pay the procurement cost. Furthermore, theprocess help in controlling the inventory level to prevent hindrance in business functions. Forinstance, it stock level decrease, entity will have to pay extra amount to manufacture products. Inaddition to this aspect, entity will have to avoid profits by delaying the customers and thusstimulating them to purchase rivals offerings. Other than this, with the help of procurementprocess, company can mitigate the uncertainties by ascertaining the critical risk components in aentity or with their suppliers (Bankole and et al., 2012). Furthermore, the stakeholders have significant role in assuring the effectiveness ofprocurement process. Stakeholders refers to those individuals or party that have interest in4
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