Cost Strategies for Retail Success
Added on 2020-04-07
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Running Management: PURCHASING MANAGEMENT 1Purchasing ManagementNameInstitution
PURCHASING MANAGEMENT 2IntroductionEvery business activity is a continuous process that requires proper strategy to succeed. In the case of a retail business, the purchasing process is the first and most important activity as it determines the success or failure of other activities later conducted in the business. There are strategies that require a careful consideration when purchasing products to ensure for efficiency and satisfaction on both sides of the business. The paper discusses the supplier management criteria, Cost management and ICT influence on supply. All these strategies requires a special approach as well as more recommendations for future use. Retailing is the closest supplier of goods and services to the consumers in both small and large quantities. Singapore is known for the many retailer businesses dealing with different products for the satisfaction of goods and services of the people around the area. Lucky Plaza, for example, is a retailer on Orchard road which deals with low-priced products for low budget consumers. Unlike other retailers along the same street who deal with luxurious products afforded by the wealthy, Lucky Plaza can cover for almost all consumers in the market due to their fair prices[ CITATION Cho06 \l 1033 ]. Their competition is therefore in the positive direction as the demand for their products increases with the reduced prices. The main items sold here clothing, accessories, used books, chocolate, sweets and many others that come either brand new or used but in good condition. The retailers on the Lucky Plaza Street strive to satisfy for the large market of the local consumers who are the main buyers of their products. They strategize on quality, affordability and excellent customer relations that attract more clients in the outlets[ CITATION Kah03 \l 1033 ]. The future of the business seems promising as they plan on advancing into other streets and capturing a larger market for their products.
PURCHASING MANAGEMENT 3Supplier Management criteriaThere are several attributes that an organization must consider when planning their activities with supplies. The approach is necessary because, through the vendor’s activities, the team determines the quality of products they receive, the prices and eventually the profits they make. Some of the important aspects that every organization should consider include cost, risk, service,delivery, convenience, social responsibility, and agility. All should be under control to ensure that there is a maximum benefit to both parties[ CITATION Bhu02 \l 1033 ]. There are many risks involved in the supply of right from the source to the business which if not well covered might significantly affect the progress of the organization. Some suppliers are based on the natural environment whereby the group is expected to get involved in the extractionof products, especially raw materials. In this kind of setting, some risks involved are accidents and loss of the products of mining[ CITATION Jab09 \l 1033 ]. Other risks are involved during the transportation process regarding accidents that might result in high losses for the business. It is therefore important to consider setting aside funds to cover for the risks in case they occur and most importantly come up with strategies to reduce such occurrences. The service and delivery usually fall under a similar category in that suppliers should offer quality services while delivering their products to their clients. The client here is the business whose primary purpose is to get the products they order in their right quantities, quality and at the right time. The firm should get in touch with a trustworthy supplier who is ready to observe timing and other terms of delivery for a positive impact on the organization[ CITATION Bor091 \l 1033 ]. Regulating the delivery is also an issue that affects the structure in such a way they can
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