Procurement and Contract Law

Procurement and Contract Law
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Table of Contents
Introduction......................................................................................................................................3
Common Challenges faced by procurement and supply chain managers and the manner to
overcome same................................................................................................................................3
Appraisal of main contracting issues and legal implication for major projects and programmes
and projects for successful completion............................................................................................6
Contracting issues........................................................................................................................6
Legal implications of contractual issues......................................................................................7
Main legal issues relating to formation of relationship in supply chain formation of relationship.8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
Supply Chain management is about delivering the right product at the right place along with
appropriate quality (Giannakis, and Papadopoulos, 2016). But in present global environment
supply chain managers are facing various issues in providing specified product in required
manner i.e. with adequate quality as well as within appropriate time. Present report emphasizes
on the issues faced by Grindley Ltd, who has purchased four computers controlled lathes from
the German company. The first order relating to computer controlled lathes has been completed
successfully and installed on time. As the second computer arrived, German engineer came along
with the same to install and found that the factory is closed for coming a few days more. Further,
when he came to install, he observed that there is no power excess for allocating the machine and
he went back, and that was a major issue. Furthermore, the third lathe had also has not arrived at
the pre-decided time because the ship on which it was dispatched had been in a collision as the
result of the negligence of the navigating officer. Considering the same solutions have been also
provided in the report so that managers can overcome the issues and develop an efficient supply
chain.
Common Challenges faced by procurement and supply
chain managers and the manner to overcome the same
Key Issue: 1 Supply chain integration
A variety of challenges are faced by procurement and supply chain managers in order to make a
supply chain effective and efficient to the possible extent (Flynn, Koufteros and Lu ,2016.). The
supply chain is believed as a significant part of the company. Thus it is necessary that
appropriate efficiency should be available in its operations in order to attain success. As per the
researches, the supply chain integration challenges are divided on the basis of system
relationships. However, there are two types of relationships first in the connection between SCM
(supply chain management) system and the business strategies, and another is a connection
between sub-systems. Apart from this integration, other challenges are also faced relating to
external environment variants. Moreover challenges that are connected with Supply chain
integration comprises planning relating to flexibility in organization, purchaser order
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managements , intended planning management, Logistics administration , computation of SC
benefits, procurement administration, venture incorporation , business alteration Oriented to
Globalization , outcomes of Globalization , information and data incorporation relating to
operations of organization (Prajogo, Oke and Olhager, 2016).
The above issues could be resolved by developing different supply chains as per the
requirements of various customer and market sections so that their requirements can be
accomplished. Apart from this, it is important to set the proper positioning of operations at a
global level as per the business operations. Furthermore, by building trust within the customers
and parties involved in the supply chain, the extent of supply chain issues can be reduced (Liu,et
al.,2016.). It should be a practice to manage operations in a way that sharing of the risk is
managed equally within the partners of the supply chain as well as solutions should be made
about benefits and profits equally among partners who will eventually lead to the attainment of
supply chain integrity.
Key Issue: 2 Supply chain information
When it comes to Supply chain information, various hurdles come in between, but primary issues
are relating to the lineup of incentives of diverse partners. Judgments are made by higher
authorities; however; they think that information sharing and collaboration will on its own
increase profits of the organization (Lii and Kuo, 2016). It has been examined that every partner
is cautious about the possibility of additional partners abusing information and get in all the
paybacks from information sharing. For example, if information relating to the closure of the
factory in case of Grindley Ltd. was previously known to the engineer than he would not have
come to install the machine. Due to the unavailability of information, there was inappropriate use
of resources as well as there was a delay in the installation of the machine as well. In the present
case of Grindley factory while installation of the second lathe, engineer faced issues in
installation as he discovered that there was no power of source within thirty feet of space
allocated to the machine. Thus, if adequate information was provided before the arrival of an
engineer, then he would have easily installed the machine.
To overcome the issue of supply chain management should attempt to indulge supply chain
integration through discussing the ideas relating to financial and non-financial outcomes of every
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