Procurement And Supplier Development Questions Answers 2022

RUNNING HEAD: SUPPLY CHAIN MANAGEMENT 0
“PROCUREMENT AND SUPPLIER DEVELOPMENT”

SUPPLY CHAIN MANAGEMENT 1
Table of Contents
Question-1........................................................................................................................................2
A) Objectives of procurement................................................................................................2
B) Factors affecting suppliers, buying organizations and global sourcing strategies............3
Political factors........................................................................................................................3
Economic factors.....................................................................................................................3
Technological factors...............................................................................................................4
Question-2........................................................................................................................................4
A) Criteria for identifying suppliers which get success in Strategic supplier development. .4
Cost..............................................................................................................................................4
Core-competencies......................................................................................................................5
Flexibility.....................................................................................................................................6
B) Importance of Cross-functional teams and supplier in development success...................6
References........................................................................................................................................8

SUPPLY CHAIN MANAGEMENT 2
Question-1
A) Objectives of procurement
The major objective of the procurement is to support the company to pay the right price
according to the products and services. It also helps in satisfying the needs and requirement of
the customers by saving the time of the company; this is done by organizations through avoiding
the unnecessary steps in the procedure. For example, Best Denki electronics retail company
follows various steps for the effective procurement that is it develop the list of the suppliers and
increase negotiation with the suppliers regarding the contract. This is reducing the risk of paying
adequate amount and reduces the cost of the company (Bestdenki.com.sg, 2020). Therefore, it is
also estimated that in the year 2018 it also helps the company to ensure that the management of
the risk is done in adequate and appropriate manner (Tabatabaei & Bazrkar, 2019).
The other objective of procurement is to increase the promotion of cooperative
arrangements and supports the company to develop by using the performance measure of
procuring the goods. This helps in reducing the cost and expenditure of the company and allow
the enterprises in invest in effective area. For example, in the year 2019, there are various tools
and techniques which can be used to measuring the procurement performance by the companies
in Singapore. Therefore, it is described that majority of the companies used procurement KPI
management tools and Quality delivery and cost approach. It is because this supports in reducing
the cost while at the same time maintaining the quality of goods and services (Saberi, et. al.,
2019).
The objective of procurement is also to develop the information system so that
information is shared among all the suppliers and other stakeholders so that it reduces
misunderstanding and leads in effective management of operations. Furthermore, it is estimated
that companies in Singapore also adopt structured approach to provide training to the staff
members so that at the same time staff members also developed (Rezaei, et. al., 2019).
The purpose of procurement is also to ensure that the product and services are procured
through higher professional standards as well as probity. This also enlarges the scope of the
business and support the company to conduct the business electronically. For example, Isetan

SUPPLY CHAIN MANAGEMENT 3
which is the departmental store company in Singapore also adopt balanced scorecard approach
so that performance of the procurement measured in timely manner. This supports the company
to understand the issue at right time and make changes accordingly and this also leads in
decreasing the wastage of the company. This also helps the organization to invest in other areas
so that which increases the operations of company (Pettit, Croxton & Fiksel, 2019).
B) Factors affecting suppliers, buying organizations and global sourcing strategies
Political factors
The political factors play an important role in influencing the suppliers and organizations
which buying the goods and services because of changes in the tax rate in different countries
which affects the company to pay more cost for the product and services that is for purchasing
the raw material and various other resources. The level of corruption and environmental law
through which the business has to conduct their operations also affect suppliers to operate
activities by reducing their effect on the environment. This leads in increasing the complexities
for the organization (Paul, Moktadir & Paul, 2019).
For example, Robinsons & Co. is the department store in Singapore which conduct their
operation in Singapore, affects the company from the government regulations through which
company cannot buy from other countries. Therefore, in the year 2018 the company cost more
for buying the products because of raise in tax rate in other countries and through developing
several involvements of the government in agreements this also increase the activities of the
company. Furthermore, it also influences the global sources strategies of Robinsons & Co. it is
because of finding difficulty in selecting the supplier due to more intervention of the government
(Zoominfo.com, 2020).
Economic factors
The changes in the interest rate of the international countries also influence the
companies in negative manner and there are various other factors which influence the operations
of the buying organizations. The buying capacity of the company also affect the company to buy
the products and to pay the suppliers, this also affect the suppliers of the company. Furthermore,
the income of the consumers and suppliers of competitors also influence company to select the
marketplace and manufactures to supply product globally (Muñoz-Villamizar, et. al., 2019).