Effective Supplier Selection and Procurement

This assignment delves into the crucial aspects of supplier selection and procurement within manufacturing organizations. It emphasizes the importance of robust supplier selection processes to ensure product quality, cost efficiency, and environmental sustainability. The document analyzes various strategies employed by firms to achieve effective procurement, including green purchasing practices and measures to minimize environmental impact.

Procurement & Inventory
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body...............................................................................................................................1
a) Describe the supplier selection process undertaken by the cited firm to support their
business...................................................................................................................................1
b) What procurement strategies will be used by Usaha Tegas to place in the cost effectiveness
and management competitively..............................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Procurement and effective handling of the inventory is very vital and crucial for a
business firm. The process of procuring or acquisition will help the company or a business
organisation to have a better stability and productivity in the market. On the other hand, the
better handling of the inventory will help the business organisation to manage its operations in a
significant and effective manner (Kotloff. And et.al., 2015). This report will lay an emphasis on
the different sort of business strategies that will be undertaken in consideration by Usaha Tegas
Sdn Bhd (UTSB). It is a well known Malaysia based copper wire manufacturing firm that
provides the product for the domestic as well as industrial purposes on local and international
level. The report will lay focus on the supplier selection criteria and various sort of procurement
strategies that are been undertaken in consideration by the cited manufacturing firm to sustain in
competitive industry.
Main body
a) Describe the supplier selection process undertaken by the cited firm to support their business.
The effective selection of a good supplier is very necessary and crucial for a business
organisation. The supplier will provide the company with either the raw material or the finished
goods that will catalyse the business operations of the cited business firm. The UTSB will see
through the handling of the different business operations which is very important for the growth
and development of the business firm in an effective and significant manner. The cited firm will
follow a wide variety of supplier selection process or criteria to handle a wide range of its
business operations. Other than this, it will help the business entity to meet the needs and
demands of its stakeholders and customers in a very effective way (Xiao, Yang and Zhang,
2015). The effective handling of the supplier selection process will involve the following
measures, which will be followed by cited manufacturing firm to maintain its inventory or
logistics are as follows:
 Cost: This is the most crucial and vital factor that is required to be taken in the
consideration by the cited business firm. The supplier who will be providing the good
quality raw material or goods at the nominal or reasonable cost will be the first priority of
a business organisation. The supplier will look after to keep the process of the products
and services at a very minimum cost that will help in effective rise in the operational
capacity of the organisation (Wild, 2017). The lower cost of the raw material that is been
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offered by the supplier will help the firm to gain a cost efficiency and handle the business
operations in a better and significant manner.
 Quality and safety: The organisation will also look after the effective handling of the
quality standards and the safety measures that are been taken in the effective
considerations by the firm that will lay a very crucial impact on the overall functionality
of the cited business firm. Besides this, the firm will also look after the measures that will
help the supplier to provide the raw material for copper wires in a safe and significant
manner. The quality is the most important part for the organisation that is needed to be
taken in consideration as high quality of raw material from the supplier will help in
developing and manufacturing of good quality of product, which will help the cited
business firm to gain a better trust level of its customers and generate a good amount of
revenue (Yan, Chien and Yang, 2016).
 Delivery: The delivering of the various sort of raw material will help the firm to carry out
the manufacturing process in a very effective manner. Other than this, the timely delivery
of the raw material will lay a very deep and significant impact on overall manufacturing
and development process. Other than this, the delivery of the copper goods in a usable
and good state will be also an important factor that is required to be taken in effective
thought process by the manufacturing business organisation.
 Social responsibility: UTSB will see through the better handling of the manufacturing
process that will help the firm to carry out the business operations in a better way.
Besides this, effective manufacturing process measures like recycling the old wires and
copper goods will not only help the company to gain a cost effectiveness but also support
the companies measures to fulfil its corporate social responsibility by reducing the
pollution and saving the non renewable power resources, utilized in the manufacturing
process (Wang and et.al., 2016. ).
 Convenience: The cited business firm will look after the effective handling of the high
convenience and simplicity of the processing and utilization of the manufacturing
process. The lower level of complexity faced by firm in using the raw material provided,
higher is the priority gained by supplier. The simplicity of unloading, utilising and
manufacturing the raw material will lay an impact on the overall functionality of the
organisation.
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 Risk: It is the most crucial factor that is been taken in consideration by the cited business
firm. The high level of risk factor associated with a supplier will lay a very deep and
significant impact on overall manufacturing process of the copper wires by cited business
entity. The organisation has to look and consider various risk factors that are been related
to the copper wire manufacturing process which will help in avoiding any sort of negative
impact on cited business firm (Stadtler, 2015).
b) What procurement strategies will be used by Usaha Tegas to place in the cost effectiveness
and management competitively.
The effective procurement or acquisition process is required to be taken in the effective
handling of the different sort of the business operations that will lay a very deep and significant
impact on the operations of the cited manufacturing firms. The process of procurement will help
the cited business entity to increase its operational efficiency and handle a wide range of
business operations in a better and significant way. The procurement process in a firm will
involve the deep analysis of the conditions and creation of effective contract that will help in
bridging the gap between various departments or collaborating firms. This approach will also
help in improving the overall efficiency of business firms by building a very close and
interactive relation with its suppliers. Some major procurement strategies that are been taken in
consideration by the firm is as follows:
 Leverage technology: This strategic approach helps in the better handling of the
different sort of high level of technical approaches which will support the execution of
their business operations. The manufacturing firm will look after better management of
its business operations to meet the needs and demands of its customers. The adoption of
the latest technology like cloud storage or advance ERP or supplier management system
will help the business firm to improve the inventory handling of the firm. The
implementation of right strategy will have a positive impact on the business operations of
the company. Other than this, it will also help the firm to face the production related
challenges (Jacobs, Chase and Lummus, 2014.).
 Building and maintaining strategic partnership: For the better procurement process,
UTSB has to look after effective handling of different business operations that will help
the firm to handle a wide range of business operations. The development of the better
partnership will help the firm to save the vital time and resources that is been owned by
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the business firm. It helps cited business firm to have a better cost effectiveness and
reduce the unnecessary business expenses. The stronger relationship will also help the
firm to have a better negotiation and bargaining power of the firms.
 Total quality management: This strategy will help the firm to maintain the quality
standards of the firm and practice the high quality measures that are been taken in
consideration by the firm. It will help the firm to improve the product quality and meet
the expectations of its customers in a better way (Stadtler, 2015).
 Green purchasing: It is one of the most commonly used and effective strategy that is
been used by the government and the business organisation to cut cost the expenses of the
operations and meet the CSR or social obligations that are been set in the society. It will
help the company to prevent any sort of adverse impact on the environment and help the
manufacturing firm to minimize the cost and maximize product quality.
CONCLUSION
Thus, it can be concluded that the business organisation will have to look after the better
supplier selection and procurement process that will help the business firm to handle the business
operations in a better way. The different measures that are been undertaken by manufacturing
firm for effective supplier selection and carrying out the execution and implementation of
different strategies to have an effective procurement process. This measures will help the firm to
meet the needs and demands of the user and cited business firm in a very effective and
significant manner. Besides this, it will help the firm to maintain the environmental wellness and
avoid negative impact on environment.
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REFERENCES
Book and journals
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Kotloff, R.M. And et.al., 2015. Management of the potential organ donor in the ICU: society of
critical care medicine/American college of chest physicians/association of organ
procurement organizations consensus statement. Critical care medicine. 43(6). pp.1291-
1325.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.
Wang, G. and et.al., 2016. Big data analytics in logistics and supply chain management: Certain
investigations for research and applications. International Journal of Production
Economics. 176. pp.98-110.
Wild, T., 2017. Best practice in inventory management. Routledge.
Xiao, G., Yang, N. and Zhang, R., 2015. Dynamic pricing and inventory management under
fluctuating procurement costs. Manufacturing & Service Operations Management. 17(3).
pp.321-334.
Yan, M.R., Chien, K.M. and Yang, T.N., 2016. Green component procurement collaboration for
improving supply chain management in the high technology industries: A case study
from the systems perspective. Sustainability. 8(2). pp.105.
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