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Report on Purchasing Management

   

Added on  2020-03-23

9 Pages2724 Words68 Views
Running Head: PURCHASING MANAGEMENT 1Purchasing managementNameInstitutionDate

PURCHASING MANAGEMENT 2 Purchasing ManagementIntroductionThe main purpose of this report is to analyze the effectiveness of purchasing managementaspects in purchasing management operations in the company or business organization. These aspects include supplier selection criteria and issues relating to it, ICT aspect for purchasing operations and purchasing cost analysis in an organization. There are various types of these aspects in the business market operations but not all effectively lead to success, as a result the report objective is to recommend the best criteria that can be used in the organization to enhance success. The company to be used in this case is Coca-Cola Corporation which is a global company (Mukhopadhyay, et al, 2016).Coca-Cola is a beverage corporation that is globally represented with more than 500 types of beverage drinks that are non-alcoholic. The company was invented in the year 1886 in Atlanta Georgia by John Pemberton. It has various sectors that function to enhancing its success in the world of purchasing, production, marketing, and distribution. Among the various drinks offered by the company to its customers are coffee, soft drinks, energy drinks, water, juices among many others. The main objective of Coca-Cola Company is to be the best serving outlet to provide best beverage products and services to its customers (Giannoumis, 2015).Managing directors in over 200 countries worldwide have the roles to ensuring smooth management activities in line with the company’s strategies and objectives in the beverage market. Purchasing managers in all the companies’ outlets are well trained to ensure a smooth and fair supplier selection criteria, with distinct ICT purchasing method that ensures all purchasing goals are met. To enhance purchasing of the company’s product, the company has seta strong digital platform where all their customers are able to give their views about the company’s product. The target market is all age groups the company is doing well inline of marketing and distribution (Weele, 2010).Supplier selection criteria and issues of Coca-Cola CompanyThis is a process by which logistic supplier selection management is enhanced or carried out in the company. Being a global company, Coca-Cola has set supplier guiding principles that any individual looking for a contract to supply raw material relevant to its production activities, should strictly adhere to the set principles. These principles give a simple outline of the

PURCHASING MANAGEMENT 3company’s values and what they expect from their suppliers. The set values are lined with humanrights policies important in ensuring that all involved are respected as they also respect the company. Since the company SGP (Supplier Guiding Principles) were established, collaboration with the supplier partners has enhanced success in workplace rights assessments. The main goal for the companies SGP is to ensure that all the suppliers’ requirements are maid according to lawand the set strategies and objectives. Suppliers should supply only what they are expected to by the company and also in the right required position (Dejian, 2015). Social responsibility criteria are what the company uses to select its suppliers. Being a global company with various local outlets in the world, the need to acquire adequate raw materialis on a higher level. This is important in ensuring that the set supply and production goals are met. Both local and international suppliers offer their services to the company (Sekaran & Bougie, 2016). It’s formed on the basis of fairness and acquisition of human rights both at workplaces and outside. An assessment of the appealing suppliers is done by the supplier selection manager and his or her team following the SGP as required. Only those that meet the requirements are lucky to offer their supplying services to the company. If any of the chosen suppliers fail to implement the set principles, the supplier authority is expected to take corrective measures or actions. In the same way that the company signs a contract with the supplier, it has aright to terminate the contract if the supplier cannot uphold the supplier guide principles.RecommendationCoca-Cola is a corporation that is formed on the provision of services to its customers. With more than one billion customers in the whole world, the products and services required are extremely many. To ensure this products and services are always present for their customers, the company should adopt delivery supplier selection criteria. This is a method where only those thathave been identified to deliver are chosen to sign the supplying contract with the company. This is important to ensure that any required amount of supply into the company is readily available atall times. The company’s supplying selection management should ensure that the rate and procedures at which they choose their suppliers is the same as the rate of production and servicesdelivered to their customers. This is important to help ensure there are a steady supply and distribution of the company’s product without wastage. It also enhances customer’s loyalty to thecompany’s services as they are aware they can always get their services as they need it and at any time.

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