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Procurement and Supply Function : Assignment

   

Added on  2020-01-07

15 Pages5225 Words190 Views
Procurement and SupplyFunction

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1a) Opportunities for the procurement and supply function to create savings or efficiencies orother sources of added value..................................................................................................1b) Improving the profile of function.......................................................................................3c) Creating collaboration with stakeholders to increase early engagement in the procurementprocess....................................................................................................................................4d) Need for organisational policies and procedures to implement effective procurement andsupply.....................................................................................................................................5TASK 2............................................................................................................................................6a) Research the market of chosen category and review its size, scope and extent ofcompetition.............................................................................................................................6b) Summarise the demand and supply factors that impact on the chosen category ofprocurement............................................................................................................................7c) Current pricing mechanism applied to the category and assess the factors that impact on thepricing of the category............................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11

INTRODUCTIONIn the current era of globalization, procurement and supply chain play a significant role inthe growth and success of firm. Supply chain can be termed as a flow of goods and serviceswithin and outside the enterprise. While, procurement can be stated as a business managementfunction that makes sure regarding identification, sourcing, accessing and management of theexternal resources that the firm needs or may need to fulfil its strategic objectives (Bose and Pal,2012). However, procurement applies the science and art of using external resources and supplychain management through a body of knowledge interpreted by competent practices of themanagement. However, one of the main difficulties faced by businesses in defining with the termprocurement is that it does not deal with a single action of process. It covers the complete rangeof events from the identification of a need for a product or service to its disposal or cessation(Khan, Christopher and Burnes, 2008). Procurement involves activities and events before andafter the signing of contract as well as general management activities linked with the business. Inthe present study, Sainsbury supermarket, a retail organization has been undertaken which is thesecond largest chain in the UK. It is essential for the company to maintain its procurement inorder to gain benefits and attain lower costs, improve quality, reduce risk and add greater value. TASK 1a) Opportunities for the procurement and supply function to create savings or efficiencies orother sources of added valueIt can be assessed that procurement and supply function delivers a range of benefits thatnot only seek to reduce the costs but also to ensure effective supply. Furthermore, it also supportsstrategic organizational objectives such as market expansion and product innovation so thatSainsbury can gain benefits from procurement (Molino, 2013). These are as follows-Security of supplyLowering the costs-Reducing the riskImproving qualityAdding greater valueIncreasing efficiency Product innovation 1

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