Supply Chain Management and SME Funding
Added on 2020-06-06
7 Pages1720 Words69 Views
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Purchasing/Supply Management
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1SESSION 2......................................................................................................................................2Task 1..........................................................................................................................................2TASK 2.......................................................................................................................................4SESSION 5......................................................................................................................................4Task 1..........................................................................................................................................4Task 2..........................................................................................................................................5CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................5.........................................................................................................................................................5
INTRODUCTIONPurchase and supply management play crucial role in procurement and monitoring ofgoods. It also involve activities like negotiation with suppliers or wholesalers which can help anorganisation in reducing overall cost of production. TASK 1(1) Size of firm – 101800(2) Sector – Computer hardware and software(3) Nature of business – Technical support and Sell Laptop(4) Number of employee in Purchase/supply management – Around 35000(5) Years of commencement of business – 1984(6) Structure of purchase/supply management function – Normally in business oftechnology an organisation first find a supplier so they can make personal computers. After thisthey look for distributors who can take their product in market by finding retailers or resellers. Atthe end goods reach to their final customers. Dell has a simple structure for purchase and supplymanagement, they buy raw material from supplier and process them in finished item. Theydirectly sell their commodities to end users (Barney, 2012). Their are three levels in organisation,first is strategic who main broad policy, second is analytical who examine the whole process andlast is operational who execute decided strategies.(7) P/S management function input in strategic decision – It assist in reducing cost ofoperation by using effective approaches like Just-In-Time. They keep their inventory for 6 daysin warehouse which cut down labour, maintenance other costs. They started avoiding use ofoutdated technology which gave them extra edge on their competitors. They sell their productdirectly to their final customers which is the main reason of high profit margin.(8) Main issue in P/S management function – Their are two main issues, first is thatsupplier do not maintain the quality of raw material which companies need in order to makedesired product. In initial period they deliver goods according to their promise but after aftersometime they start breaking their commitments. Organisation's are failing to find skilledworkers who have deep knowledge of the work. Retention of workers is another issue, anenterprise may give training to new employee but they work in firm for a long time. 1
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