Operation Management | Report

Running Head: OPERATION MANAGEMENT 0
Operation
Management
(Student Name)

OPERATION MANAGEMENT 1
Table of Contents
Introduction......................................................................................................................................2
Challenge faced by Purchase Manager............................................................................................2
Analysis of Issue..............................................................................................................................2
Way to Improve...............................................................................................................................2
Conclusion.......................................................................................................................................3
References........................................................................................................................................4

OPERATION MANAGEMENT 2
Introduction
Purchase manager in supply chain faces daily challenges that are required to put direct
attention as well as rapid response. Such issues can have huge impact over the company as the
supply chain is the backbone of business operations (Moretto et al., 2019).
In the following part there will be detailed analysis of the major challenge that is faced by
purchase manager while managing the supply chain.
Challenge faced by Purchase Manager
The major challenge that is faced by purchase manager in the supply chain is managing
the risk.
Since market changes are ongoing, the activities will be influenced by a variety of sources, such
as consumer demand, political agendas, and multinational procurement (Busse, Meinlschmidt &
Foerstl, 2017).
Analysis of Issue
Managing risk is one of the difficult tasks for the purchase manager to do due to the main
reason the external market is fluctuating at regular basis. Risk is always a major focus of
procurement with an emphasis on the financial status of manufacturers, accompanied by health
and safety standards and industrial activity. It's not necessary to reach the level 1 supplier
anymore. The regulation of the approach with tier-two service providers must be underlined and
the required responsibilities assigned to subcontractors must be assured. Furthermore, the
implementation of a comprehensive risk approach to mitigate overall risk, mitigation activities