Purchasing Management Assignment

   

Added on  2019-10-30

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Running head: PURCHASING MANAGEMENT 1Purchasing management Student’s nameUniversity affiliation
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PURCHASING MANAGEMENT2Purchasing managementIntroductionAs a manager in the purchasing management department, one of my roles is to ensure that all the inventories, goods and supplies that are needed in the process of operating business are ordered as required and maintained in stock. A purchasing manager is bestowed with the responsibility of taking control of the costs of all the goods that order, control over the levels of inventory and also ensuring a good relationship with the suppliers (Davies, 2013). This paper intends to analyze the effectiveness of the supplier selection criteria and the related issues, the purchasing costs and also ICT for purchasing operations and management. Apple Inc. refers to a multinational technology Company that is situated in America with its headquarters in Cupertino, California. This company is involved in the designing, development and the sale of computer software, consumer electronics, and other online services. Some of the hardware products that are offered by the company include; Mac personal computer,iPhone smartphone, iPad, iPod, Apple watch, Apple TV digital player and smart speaker referredto as HomePod. Some of the consumer software products that the company offers include; iTunes media player, Safari web browser, macOS and iOS and iLife and iWork which are creativity and productivity suites (Grady, 2009). The main competitors of Apple Company are Samsung, Google, and Microsoft. To reach its market, the company has a wide range of suppliers who employ millions of people to ensure ease in accessibility of their products globally. The main organizational goals of Apple Inc. are leveraging its ability to design and develop, take responsibility in environmental protection, enhancement and expansion and lastly offering support to the community. To achieve these goals, one of the strategies that the
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PURCHASING MANAGEMENT3company has undertaken is being involved in community activities and the creation of employment. The other strategy is encouraging innovation and eliminating any of the toxic products in their production process. The third strategy that the company has adopted is offering superior innovation as well as integration so that it can be in a position to design and also develop new and unique products. Suppliers’ selection criteria and issuesThe three purchasing goals and needs of the Apple Company include; cost leadership, growth and the creation of a sustainable advantage. For the cost leadership to be achieved in the organization, the procurement process must be rigorous across the value chain. The creation of growth as the second goal of the company can be achieved by the strategy of marketing embraced so that it can be easy to drive products differentiation, ensure a faster and a better innovation in products and also market entry. There is thus a need for the company to work hand in hand with the suppliers through collaboration so that they can offer ideas for the creation of new and improved products as well as services. The other need of the company is to have a clear understanding of the procurement portfolios so that the company can be in a position attain a sustainable advantage. The company needs to design unique strategies so that it can be in a position to compete effectively in the market due to its competitive advantages (Kahraman, & Öztayşi, 2014). To choose the right supplier requires more than scanning the price lists. The choice of thebest supplier depends on factors such as reliability, money, service, and quality. A strategic approach should thus be adopted while choosing the suppliers. The first step in the criteria that I would recommend for selecting suppliers is thinking strategically in the process of selecting the
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PURCHASING MANAGEMENT4suppliers denotes that the best suppliers are those who provide products that meet or even exceeds the need of the organization. Thus, Apple should make sure that the supplier selected meets the organizational needs. The next step that I would recommend is the determination of what an organization is looking for in a supplier. Apple should ensure that it chooses suppliers who are reliable, delivers consistently quality products, have clear communication and a strong service, have financial security, those who are ready for a partnership approach and also the company should take into account the value for money (Kotzab, Pannek, & Thoben, 2015). The third step is the identification of the potential suppliers. This can be achieved through the use of some sources such as recommendations, trade associations, exhibitions, directories, trade press and business advisors. The fourth step in the selection of the suppliers is shortlisting the suppliers. This is done after getting a clear picture of the kind of a supplier that an organization wants to have. In this, the procurement manager should consider factors such as whether the suppliers can deliver, the financial security of the supplier, the time they have been in operation or whether they are in any other approved list of suppliers.The other step in the criteria for selecting the suppliers is choosing a supplier. After shortlisting the potential suppliers, the organization should consider approaching them and asking them for a written quotation and a sample. This is very imperative in that it assists the organization to get a clear picture of that which it needs, how often they will need it n and the level of the business that they need to place it (Monczka, Handfield, Giunipero, & Giunipero, 2015). They should thus get the quotation and do a comparison of the quotation for all the potential suppliers regarding the factors that matter most to the organization. Even though the price is an important factor, it should not be the only one to consider since lower prices may not
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