Operation Management Report: Challenges for Purchase Managers

This report delves into the critical challenges faced by purchase managers in the realm of operation management, with a specific focus on risk management within the supply chain. The introduction highlights the pivotal role of purchase managers in addressing daily issues that directly impact business operations. The report then identifies and analyzes the primary challenge: managing risk in a fluctuating external market, influenced by consumer demand, political agendas, and multinational procurement. The analysis underscores the complexities of risk management, emphasizing the need for continuous monitoring and pre-screening of suppliers. The report recommends the development of a comprehensive risk management plan and the implementation of logistic software to enhance efficiency. The conclusion reinforces the significance of the purchase manager's role in company growth and success, emphasizing the necessity of proactive risk management and technological support. The report concludes by summarizing key points and provides references to support the analysis. This document is available on Desklib, a platform offering a wide range of AI-based study tools for students, including past papers and solved assignments.

Running Head: OPERATION MANAGEMENT 0
Operation Management
(Student Name)

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Table of Contents
Introduction......................................................................................................................................2
Challenge faced by Purchase Manager............................................................................................2
Analysis of Issue..............................................................................................................................2
Way to Improve...............................................................................................................................2
Conclusion.......................................................................................................................................3
References........................................................................................................................................4

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Introduction
Purchase manager in supply chain faces daily challenges that are required to put direct
attention as well as rapid response. Such issues can have huge impact over the company as the
supply chain is the backbone of business operations (Moretto et al., 2019).
In the following part there will be detailed analysis of the major challenge that is faced by
purchase manager while managing the supply chain.
Challenge faced by Purchase Manager
The major challenge that is faced by purchase manager in the supply chain is managing
the risk.
Since market changes are ongoing, the activities will be influenced by a variety of sources, such
as consumer demand, political agendas, and multinational procurement (Busse, Meinlschmidt &
Foerstl, 2017).
Analysis of Issue
Managing risk is one of the difficult tasks for the purchase manager to do due to the main
reason the external market is fluctuating at regular basis. Risk is always a major focus of
procurement with an emphasis on the financial status of manufacturers, accompanied by health
and safety standards and industrial activity. It's not necessary to reach the level 1 supplier
anymore. The regulation of the approach with tier-two service providers must be underlined and
the required responsibilities assigned to subcontractors must be assured. Furthermore, the
implementation of a comprehensive risk approach to mitigate overall risk, mitigation activities

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and risk management is being one of the main challenges. Therefore, the group executives with a
keen understanding of potential product risk management will be the emergency rangers for
acquisition specialists to do this. It is required for the purchase manage important pre-screening
services are before they are on board to be tracked continuously (Tran, Childerhouse & Deakins,
2016).
Way to Improve
According to the analysis of the issue that is faced by purchase manager, I would like to
recommend that the risk management plan must be prepared by the team members on who the
company will be able to cope up from the disruption during the course of operations.
Furthermore,, by hiring Logistic Software Development Company, they can able to manage
such issues in more effective manner with less efforts on their hand. After all, management of
logistic is one of the important things for the entire operation (Swain & Cao, 2017).
Such change will help the organization to grow in the international market in more
effective manner. The purchase manager of the company can able to manage the risk in an
efficient manner that will provide an opportunity to the company to enhance their level of
revenue as well as to expand its business in international market to the certain extent
Conclusion
From the above analysis it can be concluded that purchase manager play a vital role in the
growth as well as success of the company. Due to increase in the fluctuation of supply
management and external environment create an issue for the purchase manager to manage the
risk of the company at certain extent. Therefore, the company is required to focus over the risk

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management plan as well as to provide logistic software to the purchase manager that can help
them to grow in the market in an effective and efficient manner.

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References
Busse, C., Meinlschmidt, J., & Foerstl, K. (2017). Managing information processing needs in
global supply chains: A prerequisite to sustainable supply chain management. Journal of
Supply Chain Management, 53(1), 87-113.
Moretto, A., Grassi, L., Caniato, F., Giorgino, M., & Ronchi, S. (2019). Supply chain finance:
From traditional to supply chain credit rating. Journal of Purchasing and Supply
Management, 25(2), 197-217.
Swain, A. K., & Cao, R. Q. (2017). Using sentiment analysis to improve supply chain
intelligence. Information Systems Frontiers, 1-16.
Tran, T. T. H., Childerhouse, P., & Deakins, E. (2016). Supply chain information sharing:
challenges and risk mitigation strategies. Journal of Manufacturing Technology
Management, 10(2), 52-89.