Supplier Selection and Management
Added on 2020-04-01
11 Pages3327 Words228 Views
|
|
|
Running Head: SUPPLIER MANAGEMENT: A CASE STUDY OF CHALLENGER COMPANY1Supplier Management: A Case study of Challenger Company.Student Name.Institution of affiliationProfessor
SUPPLIER MANAGEMENT: A CASE STUDY OF CHALLENGER COMPANY21.IntroductionThe primary purpose of this essay is to provide a detailed analysis of the threeaspects of purchasing operations and management which include supplier selection andpurchasing system evaluation, use of information and communication technology inconducting purchasing operations and purchasing cost analysis. Purchasing may bedefined as a function of buying goods and services from external sources of a firm. Thewhole process of purchasing is always conducted by the purchasing department of anorganization, (Amidoust, Ahmed, Saghfinia &Bahreininejad, 2012). Purchasingmanagement is a key aspect of an organization. Proper purchasing managementenables enterprises to make informed decisions on whether to buy or make specificcommodities, avoid stock outs, and maintain adequate stock levels, develop goodrelations with the suppliers and ensure that proper records of all transactions are kept,(Lin, 2012).1.1 The selected local retailerBased in Singapore, Challenger has been in operation in IT retail market for over35 years. This company has received distinct reputation as the only homegrownconsumer electronics chain with a large network of about 38 stores located island-wide,(Challenger, 2017). It was established in 1982 and is well known for its strong brandname, strong partnerships with major international brands and attractive.Challenger deals in IT products and accessories entailing brands like HewlettPackard, Valore, Samsung, Acer, Asus, Canon, Toshiba, Nikon, and Olympus,(Challenger, 2017). The company buys these products from trusted suppliers and thenstocks them in its stores, where customers buy them. It also offers services in bulkpurchases, free domestic delivery for purchases worth 1000 dollars and above andpurchases for occasions and special events like door and corporate gifts, (Challenger,2017).Challenger mainly targets smartphone and computer users, who are dedicated toderiving value from their purchases, (Hachi.tech, 2017). These consist of students livingin urban and rural areas and use Laptops, tablets, and smartphones for their studies
SUPPLIER MANAGEMENT: A CASE STUDY OF CHALLENGER COMPANY3and some companies and organizations who buy IT products for office and businesspurposes. The company's main strategy is based on providing high-quality products so thatits clients derive a value for their purchases. The IT Industry faces a stiff competition asthere are several companies providing the same IT products, (Rogers, 2016). Some ofChallenger’s competitors include Best Denki Co Ltd., Pertama Holdings Limited and OASystem Plaza Co. Ltd, among others. To remain competitive, the company hasconcentrated on providing high-quality products and venturing in e-commerce throughits hachi.tech portal as its major, (Hachi.tech, 2017). It has also practiced partnershipsso as to remain strong in the industry. For instance, the company has been workingclosely with Datapipe, so as to provide high-quality technology solutions, (Challenger,2017).Challenger sources for its products from trusted suppliers of reputed companiessuch as Apple, Samsung, Acer, Asus and Toshiba among others. This has enabled it tocontinually win customer trust for its products.2.Criteria for supplier selection.According to Chen & Chao (2012), suppliers are people who provide thecompany with different products. Supplier selection is a complex process which involvesevaluation of supplier attributes, products, and congruence to the organization's values,(Meena & Sermah, 2013). The best suppliers are those who offer goods that match orexceed the requirements of the firm, (Barney, 2012). Therefore, in choosing suppliers,managers must be aware of the specific business needs. Challenger sources its products from different suppliers. It uses multiple sourcingapproaches in obtaining supplies (Challenger, 2017). This has enabled it to escape thedisadvantages of single sourcing, such as high indirect costs and complacency of singlesuppliers. The company is, therefore, able to maintain competition, protect its customersduring shortages, strikes and emergencies and maintain a strong backup source. The company follows the Peter Krailjic’s model in managing its supplies. Itconducts proper classification of its products, proper market analysis to identify itscompetitors and consumer needs, strategic positioning of its products and outlay of
SUPPLIER MANAGEMENT: A CASE STUDY OF CHALLENGER COMPANY4clear action plans which enable it to source trusted suppliers, (Schulze, Seuring &Ewering, 2012). In selecting its suppliers, the company considers the following factors:Competitive pricing: The main aim of Challenger Company is to make profitswhile providing its clients with high-quality products, (Challenger, 2017). Therefore, itmajors on competitive pricing when selecting its suppliers. Normally, the supplier's bidand the company selects the best supplier based on the price range.Product and service quality: The Company sources its products from reputedcompanies with strong brands. These companies include Acer, Samsung, and Appleamong others, (Challenger, 2017). The company, therefore, selects suppliers of highquality and genuine products who would help it maintain its brand reputation. Reliable delivery methods: Challenger Company has a wide range of storeswhere it stocks its IT products such as Phones, laptops, and Computers for itscustomers, (Hachi.tech, 2017). It selects suppliers who are able to safely deliver thesupplies to its respective stores safely without damages or delays as required.Financial stability and credit strength: Most supplies are always delivered incredit. Challenger also sources its IT products in bulk at wholesale prices and then sellsthem back to customers at retail prices, (Challenger, 2017). It buys its products oncredit, and the financial sustainability of its suppliers forms its major consideration.2.1 Criteria to be utilized in supplier selection.Supplier selection criteriaSelected supplier functionsa)Purchasing strategyThe supplier must provide high quality andadequate products that would enable Challenger'scustomers to obtain a value for their purchases.Social of ProcessingIdentify and understand the background and brandreputation of the supplier firm, so as to ensurequality high brands are obtainedOptimisationAligning suppliers base with Challenger’s supplychain goals. Keep seeking appropriate techniquesand alternative strategies. Identify the quality ofproducts offered by the supplier and whether the
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents