Description
Use at least one project you have been a team member of, or a project manager for, as an example to contextualize the research topics below:
- Define the importance of purchasing and supply management and how this relates to selecting a qualified supplier.
- Discuss how to select strategies for negotiating prices.
- Assemble the steps of the creation of a project supply, service, and material budget from detailed requirements. Illustrate the benefits and costs of outsourcing, and the growth pattern of outsourcing.
- Evaluation of the various organizations that are benchmarks in purchasing and supply management, and their best practices. Provide specific examples of companies who show market leadership in purchasing and supply management.
Explanation & Answer
Attached.
Running head: PURCHASING AND SUPPLY MANAGEMENT
Purchasing and supply management
Student’s name
University affiliation
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PURCHASING AND SUPPLY MANAGEMENT
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Purchasing and supply management
Introduction
Purchasing and supply management is an essential attribute of business as it acts as the
main artery in the whole process. Purchasing and supply is a process that involves several
activities aimed at ensuring that goods and services reach the desired destination on time. The
activities are coordinated in such a manner that they get to form a chain that is well organized
from the point of manufacturing to when the finished product reaches the consumer. The reason
as to why the whole process is essential in an organization is that it incorporates and ensures that
the prices for the entire process are minimized. Purchasing involves the point at which a manager
will get to outsource for several suppliers of the raw material that they need and later chose the
one that is profitable to their organization. Raw materials are then transported to the industry
where finished products are produced and packed according to the customer’s preference. The
management will then choose a viable mode of transportation that will ensure that the goods get
to reach the consumers.
Importance of purchasing and supply management
Several activities and processes take place in a business venture that is aimed at ensuring
that the set goals and targets are met according to the game plans. All these processes are
designed in such a manner that they will perform a certain specified function in the organization
that is not done by any other process. Taking the example of purchasing and supply
management, it is a process that ensures that it purchases and supplies goods and services to the
organization and at the same time transports the organization's products to their clients (Johnson,
Leenders & Flynn, 2010). The whole process plays a vital role in ensuring that the goals and set
PURCHASING AND SUPPLY MANAGEMENT
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targets of the organization are achieved. There are several of them represented by the process in
ensuring that the organization gets to choose the best supplier.
First, purchase and supply management is critical as it helps in reducing the cost of
operation of the organization. Most businesses are always aimed at ensuring that their operating
costs are reduced so that to maximize their revenue and thus profit. Service charge arises from all
the activities that are done to make sure that the set target is achieved. To achieve results,
resources are used which are funded by the organization. There are times when the operation cost
proves to be high thus making the organization not to be in the position to balance. It is at this
point that purchasing and supply management comes in handy. Purchase and supply
management will be...
