Purchasing Management for 3M Singapore Pte Ltd

PURCHASING MANAGEMENT

Running head: PURCHASING MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Overview of the Company.........................................................................................................2
Supplier Selection Criteria.........................................................................................................2
Goals and Needs of organization............................................................................................3
Methods to find out the potentiality of Supplier....................................................................3
Use of ICT in managing Purchasing Operations........................................................................4
Needs and Goals of organization............................................................................................4
Recommended ICT.................................................................................................................4
Computerized Shipping and Tracking................................................................................4
Radio Frequency Identification..........................................................................................5
Use of social media to streamline supply chain..................................................................5
Tools to analyze Purchasing Cost..............................................................................................6
Goals and Objectives of organization.....................................................................................6
Tools and Techniques.............................................................................................................6
Cost Analysis......................................................................................................................6
Inventory Analysis..............................................................................................................6
Best use of Supplier Analysis.............................................................................................7
Delivery Time Analysis......................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8

Running head: PURCHASING MANAGEMENT
Introduction
Purchasing management can be defined as the management of the purchasing process
and related functions in the organization. The organization can frame and operate the
purchasing department with the help of one or more employees in order to ensure the timely
receiving the goods, manage suppliers and controlling inventory cost to increase the
profitability of the organization (Procurement Analysis – Saving Purchasing Costs, 2017).
This report defines the important aspects, which are required to be considered by the
purchasing department of 3M Singapore Pte Ltd., a subsidiary firm of 3M Company, at the
time of making the purchase of raw materials. It includes management and selection of
suppliers, use of information and communication technology to improve the purchasing
operations and tools that can be used to analyze the purchasing cost of the company in an
appropriate manner.
Overview of the Company
3M Singapore Pte Ltd. is engaged in the marketing of abrasives, industrial tapes and
adhesives, security and safety solutions, flexible circuits, commercial graphics, RFID
solutions, homecare products, stationery products, reflective films and healthcare solutions
manufactured by 3M Company in Brunei, Singapore, Bangladesh, Nepal, and Myanmar. It
also produces sintered abrasives, electronic adhesives, and flexible circuits for its consumers
in the United States, Europe, and Asia. In addition to this, the company also facilitates
material analysis and predictive services to a number of industries and manufactures for the
film based products that are majorly used in electronic, automotive and commercial
applications.
It serves shipbuilding, oil and gas, electronics, construction, semiconductor,
automotive market, healthcare, consumer markets, and aerospace. 3M Singapore Pte Ltd. was
incorporated in 1966 and is located in Singapore. It operated as a subsidiary firm of 3M
Company (Company Overview of 3M Singapore Pte Ltd, 2018).
Supplier Selection Criteria
A cross-cultural group of representatives of the company should define supplier
selection criteria for a particular service or product. In a manufacturing company like 3M
Singapore Pte Ltd., such group of members may include representatives from production,