Purchasing Management Report: Singapore Telecommunications Analysis

This report provides a detailed analysis of purchasing management within the context of Singapore Telecommunications Ltd., a major telecommunications company. The report explores crucial aspects of purchasing management, including supplier selection criteria, the integration of Information and Communication Technology (ICT) in purchasing operations, and a thorough examination of purchasing cost analysis. It discusses the importance of supplier selection based on cost, quality, delivery, and risk, highlighting issues such as product quality, timely delivery, and proper invoicing. The report also emphasizes the advantages of ICT in purchasing, such as improved information availability, enhanced operational performance, and better supplier control. Furthermore, it analyzes purchasing cost analysis, categorizing purchases and detailing methods like competitive bidding and total cost modeling to optimize costs and improve profitability. The conclusion underscores the benefits of effective purchasing management and ICT integration for enhancing organizational efficiency and achieving higher profitability.

Running head: MANAGEMENT
Purchasing Management
Name of the Student
Name of the University
Author’s Note

1
MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Supplier Selection criteria and issues.........................................................................................2
ICT for purchasing operations...................................................................................................4
Purchasing cost analysis.............................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

2
MANAGEMENT
Introduction
Purchasing management is a special kind of management utilizing by any
organization for earning more profit in the process of saving money. Fundamentally, this
management is measured as an important function especially for wholesale distribution as
well as any manufacturing organization (Abdel-Basset et al., 2018). In addition to this, this
purchasing management is considered as the profitable function for the organizations due to
earning of higher range of profit by utilizing this. According to the context, the purchasing
management is implemented in the organization of Singapore telecommunications Ltd. This
organization operates as the largest telecommunications organization in all over Asia (Ariza-
Montes & Lucia-Casademunt, 2014). The main goal of this organization is to provide
telecommunications services regarding mobiles as well as internet and also TV solutions to
the wide range of the customers. Within this report, it has to explain the suppliers’ selection
criteria, involvement of ICT and also purchase cost analysis.
Supplier Selection criteria and issues
Depending on the background of this report, the selected organization is Singapore
telecommunications Ltd. which sustains in the field of telecommunications. The main aim of
this company is to provide the telecommunication services to huge range of customers by
applying mobile networks or internet services.
The primary goal of the purchasing management is to purchase the products in a
lower cost for earning higher profit and also improving the product quality (Beikkhakhian et
al., 2015). With the medium of higher level of profit, it is necessary to fulfil the business
requirements. Similarly, keeping with the equality of purchasing management, this
telecommunication company has its aim regarding purchasing products with lower costs and
also improves the productivity and also receives higher profit (Chiu et al., 2014). To keep the

3
MANAGEMENT
synchronization with the purchase management, it must be followed by this organization to
maintain such suppliers’ selection criteria. Apart from that, this company offers the services
by segmenting it into three categories like Group consumer as well as Group enterprise and
also Group digital life (Delafrooz, Taleghani & Nouri, 2014). To deliver innovative
telecommunication based services to all consumers, it has to maintain the suppliers’ selection
criteria in accordance with cost, quality as well as delivery or services and also risks.
In that case, according to analysis of markets, in the telecommunications fields,
revenue is an important factor which is affected by increasing the competition. For that, to
achieve the higher level of profits, it recommends to the company for using the cost related
and also quality related suppliers’ selection criteria (El Mokadem, 2017). Because to sustain
within the competitive market, it has to maintain the purchasing of raw materials at a lower
cost and improves the product quality for achieving the customers’ satisfaction. However,
based on market analysis, TPG considering a telecommunications based company taking a
competition with STEL by threatening with the attributes of telecommunications.
Depending on the suppliers’ selection criteria, it has been detected such issues within
this organization. The suppliers related issues generally develop due to product quality or cost
of timeframe. Sometimes, the suppliers do not provide the high quality based products
instead of taking higher amount of money and as a result it is almost impossible for the
organization to achieve the customers’ satisfaction. Another issues be like that the suppliers
do not supply the raw materials within the proper allocating timeframe (Hong , Misra &
Vilcassim, 2016). Therefore the company has faced a lot of issues regarding delivery process.
Apart from that, it has to analyse that the proper invoicing system is maintained by the
suppliers for making a correct contracting with the organization. To avoid these issues, it has
to recommend to the organizations for proper judging the suppliers before making any
contract with them and this decision helps to enhance the profitability for the organization.

4
MANAGEMENT
ICT for purchasing operations
Being a telecommunication based company, the actual goal of this organization is
provide the telecommunications based services to a wide range of customers including all
over in Asia. Within Asia, this company is considered as the largest communication company
and moreover, the one and only intention of this company is to earn more profits by
delivering the satisfied services. Moreover, by maintaining the purchase management, it is
necessary for the organization to improve the product quality for increasing the customers’
satisfaction by earning more profits.
The information and communication technology is considered as extensional factor of
the information technology which is actually required for the enterprise software as well as
middleware and also telecommunication services. This technology provides the accessibility
of the information throughout the telecommunications. The accessibility of this application
has implement with the medium of internet as well as wireless networks and also
communication mediums.
The involvement of the information and communication technology delivers lots of
advantages to the organization regarding the purchasing management. Various advantages
like material requirements as well as enterprise resources planning help to allow the fluid
availability as well as integration of the information within the organization. By
implementing the EDI, it helps to improve the operational performance and also reduces the
supervision of suppliers. On the other side, the ICT application helps to occur the
transactional e- procurement related applications which leads the improvement of
organizational efficiency (Joshi & Rahman, 2015). Moreover, with the help of this
application, it induces such communication tools for monitoring the suppliers to enable the
contacts with the suppliers and it helps to reduce the supply issues or supply related failures.
However, this ICT application provides the better quality based supplier control as well as

5
MANAGEMENT
monitoring that facilitates more efficiency in the development of the suppliers’ contribution.
In addition to this, logistics is also an important factor coming from the benefits of this
application and therefore it helps to minimize the coordination related issues. Also, the
integration of ICT application with purchase management helps to enhance the teamwork of
the organization during any development process of any product design.
Purchasing cost analysis
The main attraction of this telecommunication based organization is to provide the
internet as well as network services to a wide range of consumers within Asia. In addition to
this, the organization utilizes the purchase management for gaining more profits by
purchasing raw materials at lower rate of costs (Kar & Pani, 2014). With the help of this
management, it involves to enhance the product quality which is directly associated with the
satisfaction of customers. After that, this management system helps to proceed the proper
suppliers’ selection process for achieving the business targets (Mirabi, Akbariyeh &
Tahmasebifard, 2015). By investigating the market, it has analysed that the revenue is
measured as an important segment for creating a competitive edge. Moreover, with the
development of various technology, the competitions between various telecommunication
based organizations increase. For that, to earn more revenue for achieving the profits is too
tough for all the telecommunication related organization (Nielsen et al. 2014). In that case, it
has to continue the business progress with the utilization of purchase management which is
directly incorporated for gaining a high range of profits.
In this section, the purchasing cost analysis is also considered as a factor which
involves within this purchasing management. The cost analysis is used by this organization
for supporting the importance of the purchasing of products as well as supplier relationship.
According to the product classification, this purchasing management may be categorised into

6
MANAGEMENT
such segments like less impact purchases, leverage purchases as well as strategic purchases.
The purpose of this purchase method is to achieve the good price of products. To support the
less impact purchases, it needs to some following methods such as competitive bidding as
well as comparison with market, utilization of price indexes etc. The leverage purchases are
considered as the purchases by which organization employs a particular quantity of money
which leads to reflect for making competitive impact (Yeh, 2015). Similarly, for supporting
the leverage purchase, it maintains such tools and also techniques including estimation of cost
relationships, value analysis, total cost related modelling as well as cost estimation etc. For
supporting the strategic purchases, it has to maintain such following methods like open books
as well as target cost analysis, competitive assessment and also total cost related modelling
involving total cost along with the supply chain. These methods are utilized for achieving the
benefits regarding both buying as well as supplying organization.
Conclusion
By discussing the above factors of purchasing management, it has explained that
purchase management is specified as a management by which the organization has to earn
more profits by purchasing the raw materials at a lower costs for producing the final products
to satisfy the customers’ related demand. Moreover, this management system helps to
enhance the productivity as well as profitability. According to the context of this report, the
selected organization is Singapore Telecommunication Ltd. that is mainly
telecommunications based company. For increasing the organizational profitability, it has to
integrate the information and communication technology with the purchase management. The
integration of this technology with the purchase management helps to enhance the
organizational efficiency. Moreover, to achieve the high range of organizational profitability,
it has to select the appropriate supplier by implementing the proper suppliers’ selection

7
MANAGEMENT
criteria. At the ending point, it has stated that the purchase management is fundamentally
beneficial for this organization.
References
Abdel-Basset, M., Manogaran, G., Gamal, A., & Smarandache, F. (2018). A hybrid approach
of neutrosophic sets and DEMATEL method for developing supplier selection
criteria. Design Automation for Embedded Systems, 22(3), 257-278.
Ariza-Montes, J. A., & Lucia-Casademunt, A. M. (2014). ICT management in non-profit
organizations. Hershey, PA, IGI Global.
Beikkhakhian, Y., Javanmardi, M., Karbasian, M., & Khayambashi, B. (2015). The
application of ISM model in evaluating agile suppliers selection criteria and ranking
suppliers using fuzzy TOPSIS-AHP methods. Expert systems with
Applications, 42(15-16), 6224-6236.
Chiu, C. M., Wang, E. T., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers'
repeat purchase intentions in B2C e‐commerce: the roles of utilitarian value, hedonic
value and perceived risk. Information Systems Journal, 24(1), 85-114.
Delafrooz, N., Taleghani, M., & Nouri, B. (2014). Effect of green marketing on consumer
purchase behavior. QScience Connect, 2014(1), 5.
El Mokadem, M. (2017). The classification of supplier selection criteria with respect to lean
or agile manufacturing strategies. Journal of Manufacturing Technology
Management.
Hong, S., Misra, K., & Vilcassim, N. J. (2016). The perils of category management: The
effect of product assortment on multicategory purchase incidence. Journal of
Marketing, 80(5), 34-52.

8
MANAGEMENT
Joshi, Y., & Rahman, Z. (2015). Factors affecting green purchase behaviour and future
research directions. International Strategic management review, 3(1-2), 128-143.
Kar, A. K., & Pani, A. K. (2014). Exploring the importance of different supplier selection
criteria. Management Research Review.
Mirabi, V., Akbariyeh, H., & Tahmasebifard, H. (2015). A study of factors affecting on
customers purchase intention. Journal of Multidisciplinary Engineering Science and
Technology (JMEST), 2(1).
Nielsen, I. E., Banaeian, N., Golińska, P., Mobli, H., & Omid, M. (2014). Green supplier
selection criteria: from a literature review to a flexible framework for determination of
suitable criteria. In Logistics operations, supply chain management and
sustainability (pp. 79-99). Springer, Cham.
Yeh, H. (2015). EFFECTS OF ICT'S INNOVATIVE APPLICATIONS ON BRAND
IMAGE AND CUSTOMER'S PURCHASE INTENTION. International Journal of
Organizational Innovation, 7(4).