Procurement and Supply of A4 Size Paper: Roles, Responsibilities, and Procedures

Printing and Paper stationery in supply chain
management
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Executive summary
In this assignment the roles and responsibility for the supply and procurement of A4 size paper
has been evaluated in details. Different procedures and policies of organizations involved in the
procurement of A4 paper have been studied. The ethical codes of procurement and the rules of
corporate governance have been examined. The process of negotiation and quotation procedures
from supplier has also been studied. Different terms such as incoterm, bar coding, invoicing, and
purchase requisitions have also been studied in details.
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Table of Contents
Executive summary.........................................................................................................................0
Determining value by procurement and supply...............................................................................3
Introduction..................................................................................................................................3
Roles and responsibility for the supply and procurement........................................................3
Breakdown of budget and cost for supply and procurement of goods and services................3
Priorities of the external and internal consumers for the purchase and supply........................3
Dealing with the dispute’s or conflicts with the stakeholders and promoting commitment....3
Different organizations who are involved in supply chain and the significance in the supply
chain management....................................................................................................................4
Monitoring and controlling the purchased services and goods................................................4
Advise to the employee and colleagues of the organization relating to use of documents in
supply and procurement...........................................................................................................4
The requirement of approval of orders, requisitions, and invoices..........................................4
Ethical codes and rules of corporate governance in supply and procurement.........................5
Use of financial budget in supply and procurement of goods..................................................5
Expenditure management with suppliers.........................................................................................5
Introductions................................................................................................................................5
Different kinds of market.........................................................................................................5
Different kinds of marketing systems......................................................................................5
Understanding the impact of different analytical tools............................................................6
Impact of factors of macro-economic......................................................................................8
Effect of corporate social responsibility (CSR).......................................................................8
Breakdown of cost of services, goods and construction..........................................................8
Benefits of effective supply and procurement..........................................................................8
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Application of portfolio analysis..............................................................................................9
Pricing arrangement.................................................................................................................9
Breakdown of direct and indirect cost......................................................................................9
Comparison of new prices with the historical prices of goods.................................................9
Link between price, markup, cost, and margins.......................................................................9
Negotiating with the suppliers and analyzing the cost of services or goods purchased...........9
Defective quality and non-performance cost..........................................................................10
Assessment of different kinds of inventories, inventory techniques, and cost of inventory
holding....................................................................................................................................10
Application of bar coding and forecasting technique of inventories......................................10
Kinds of incoterms.................................................................................................................10
Developing agreement in supply and procurement.......................................................................11
Introduction................................................................................................................................11
Contract terms used in goods and services.............................................................................11
Review of procedures and process to ensure compliance with legal requirements...............11
Core clauses use at the time of procurement..........................................................................11
Performance assessment based on SMART...........................................................................12
Sourcing Essentials in Supply and procurement...........................................................................12
Introduction................................................................................................................................12
Identifying requirements from stakeholders...........................................................................12
Effect of procedures on sourcing process...............................................................................12
Single, dual or multiple sourcing options...............................................................................13
Developing invitations to tender............................................................................................13
Participation of stakeholders in sourcing plans......................................................................13
Evaluating quotations and tenders..........................................................................................13
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Purchase to Pay (P2P) systems...............................................................................................14
E-tendering software..............................................................................................................14
E-auctions...............................................................................................................................14
Unit: Supplier Appraisal.........................................................................................................15
Evaluation of capabilities of potential suppliers....................................................................15
Effective negotiation......................................................................................................................16
Introduction................................................................................................................................16
Handling disputes while negotiation with suppliers and stakeholders...................................16
Stages of negotiation..............................................................................................................16
Sources- Negotiation power...................................................................................................16
Negotiation- behavioral aspects.............................................................................................17
References......................................................................................................................................18
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Determining value by procurement and supply
Introduction
In this module, the different roles and functions for the supply and procurement in organizations
have been analyzed in details. The priorities of the external and internal customers for the supply
and procurement have also been evaluated. The benefits of the triple bottom line by purchasing
the services and goods have also been studied.
Roles and responsibility for the supply and procurement
To achieve the business goals and long term objectives paper industry should focus on their core
areas such as procurement of goods, manufacturing, management of inventory, manufacturing of
goods, and logistics. For the procurement of A4 size paper, organization should ask quotations
from all the suppliers and then choose the best suppliers and after selecting the best suppliers’
organization should negotiate and then place orders for the supply of goods
Breakdown of budget and cost for supply and procurement of goods and services
It is essential to separate the two kinds of procurement as the law relating to the sales of good
and sales of services are different. The categories of the expenditures are different for both the
procurement of services and goods. For purchasing the A4 paper, management has to consider
the materiality of the items and for rendering the services the benefits which will arise from the
services are examined by the management.
Priorities of the external and internal consumers for the purchase and supply
It is important to identify the external and internal customers of the A4 paper company. The
functional groups of the organization who receive the output are known as internal customers.
The internal customer of the A4 paper organizations are the owners, employees and the
representative of the organizations and the external customers are the suppliers, society,
government, shareholders, customers and the creditors of the organization.
Dealing with the dispute’s or conflicts with the stakeholders and promoting commitment
The A4 paper company should first identify and recognize its stakeholders of the business. These
stakeholders can influence the profit of organizations. The organizations should deal effectively
with all the stakeholders whether internal or external stakeholders. The company should then
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