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The Role of Purchasing in Supply Chain ManagementResearch Paper OutlineHabib KonateERAULGMT 536 – Purchasing for Logistics and Supply Chain Management20150711Table of Contents TOC \o "1-3" \h \z \u Abstract PAGEREF _Toc426443523 \h 3Purchasing objectives PAGEREF _Toc426443524 \h 5Strategic supply management roles and responsibilities PAGEREF _Toc426443525 \h 6Approval, contract and purchase order operation PAGEREF _Toc426443526 \h 9Types of purchases PAGEREF _Toc426443527 \h 11Purchasing policies and procedures PAGEREF _Toc426443528 \h 12Policy overview PAGEREF _Toc426443529 \h 12Purchasing policies PAGEREF _Toc426443530 \h 12Good practice Example: Best practices in diverse supplier development PAGEREF _Toc426443531 \h 13Purchasing procedures PAGEREF _Toc426443532 \h 14Supply management integration for competitive advantage PAGEREF _Toc426443533 \h 15Internal and external integration PAGEREF _Toc426443534 \h 15The critical role of cross-functional sourcing teams PAGEREF _Toc426443535 \h 16Integrating supply management, engineering and suppliers to develop new products and services…………………………………………………………………………………………… PAGEREF _Toc426443536 \h 16Purchasing and supply management organization PAGEREF _Toc426443537 \h 17P/SM organizational structure PAGEREF _Toc426443538 \h 17Location of authority centralized or decentralized PAGEREF _Toc426443539 \h 17Conclusions PAGEREF _Toc426443540 \h 17References PAGEREF _Toc426443541 \h 19AbstractThis report aims to identify the role of purchasing for enhancing the supply chain management effectiveness in organization. It has taken in to consideration the purchasing role, purchasing process, purchasing policy and procedure, supply management integration for competitive advantages, and purchasing and supply chain management organization components and analyses thoroughly these elements to find out the role of purchasing in supply chain management. The conclusion drawn from the research reveals that purchasing plays a very crucial role in enhancing the effectiveness of supply chain management and overall productivity of organization. Though, our research question is to find how the purchasing role can be made effective in supply chain management. For this the analysis reveals that supply chain management and purchasing helps organization to track organizational abilities and combine the capabilities of suppliers, customers, and development partners as well as other network actors. The business network that operates at a global level seeks that there should be development of marketing and purchasing capabilities of a company to meet future challenges and for change management (Pekkarinen, Holma, Kowalkowski, & Santema, 2013). Further the role of purchasing function can be understood with this fact that performance of any company is determined by the efficiency and effectiveness of purchasing activities and operations of company’s suppliers (CSCMP CSCMP&Tate Wendy, 2014). Also the purchasing managers along with supply managers are assumed to play a more strategic role such as outsourcing and increasing specialization demand that there should be a closer look towards the purchasing process and resources and capabilities of suppliers (Handfield, 2006).The role of purchasing is also important in terms of growing service sector economy where the need for better serving to customer has become prominent. The needs of different services by the organization show their dependency on good quality suppliers for technical advancement and innovation and this brings in the importance of purchasing in supply chain. There is a need to monitor the supplier performance and satisfaction of customers for outsourced services and that is a great challenge for the purchasing managers. The purchasing role in public organization is equally crucial as the public sector procurement demands that there should be cost reduction and the providing more to the tax payers. Here the relationship management with key suppliers is an important aspect for the business and this also reflects the importance of purchasing. The legal repercussions are also considered for purchasing the products for public organization and selecting suppliers is a critical question for purchasing managers (Ashfield Council, 2000).Purchasing objectivesAccording to Handfield (2011), there are six purchasing objectives:to support operational requirement;to obtains products from the right source;to consider manufacturing requirements, physical distribution centers, research and development, transportation and other services and information technology;to manage the supply base and procurement process with efficiency and effectively;to consider the competitiveness of current suppliers, identification of new suppliers and develop relations with them, and improvement and development of those suppliers who are non-competitive;to manage the internal operation with procurement staff management.The first objective requires the understanding the business requirements. The purchasing must be aligned with business requirements. The purchasing has objective of getting products at right price. This is most important for companies to provide products at competitive prices and earn better margins. According to the second objective the source must be trustworthy and reliable in terms of delivering products and services at right time. Purchasing has objective to purchase products with right specification that fulfils the user needs and it helps the organization to provide customized solution and products to customers. The purchasing objective is to purchase products in right quantity so that production or services delivery cannot be hampered. Another objective is to deliver the product at right time for customers.The third objective is to purchase products and services to right internal customers and this internal customer of purchasing considers manufacturing requirements, physical distribution centres, research and development, transportation and other services and information technology. All these objectives are taken in to consideration for supporting operational requirement. For the forth purchasing objective, certain steps must be taken in to consideration such as identifying the opportunities that includes evaluation and selection of suppliers, standard procurement processes, involvement of engineering and other fictional in puts, sourcing team use, and involvement of sales personal to create contractual agreement with involvement of procurement team. Along with those, review of specification, review of requirement, suggestion of alternative standardized materials and periodic review of requisition must also be considered. Purchasing has objective of acting as a primary contact with suppliers, and finding the method for contract creation. For managing the supply base, purchasing department considers the competitiveness of current suppliers, identification of new suppliers and develop relations with them, and improvement and development of those suppliers who are non-competitive.Purchasing has objective of managing the internal operation with procurement staff management, development and maintenance of processes and policies, introduction of feasible technologies and systems and their leveraging, development of plans and measures, to provide procurement leadership, and professional training and development opportunities to employees. Purchasing has another objective that is to develop a strong relationship with other groups and to support organizational objectives and goals as well.Strategic supply management roles and responsibilitiesSupply chain management has a strategic role to play in the organization. It is pivotal because it takes care of the customers’ demands and provides these specifications to the suppliers to improvement in the services and products. The strategic role of supply chain management is in removing costs of supply, increasing quality of products and interfaces with the suppliers’ suppliers to improve the strives of suppliers to the company. It is more important in this regard that many companies are still not considering tapping the suppliers’ suppliers to improve the quality and delivery of products and services (Gimenez, Ventura, 2003).The role of supply chain management can be understood with this fact that it assists in sharing the risk with suppliers and thus mitigates the risks. This process involves that risk can be moved to those suppliers who are able to manage them. It is also ensured that the critical products and services must be supplied and supply chains are managed accordingly. Supply chains management strategic role is to manage the benefits as well that not all organizations are comfortable with. The responsibility for supply chain management should be played by the supply and management professionals and they should be held accountable for the development of supply chain management. The upstream supply chain is complex and there are many complex networks that need to be managed. The supply chain management is fulcrum of the business because it involves the responsibility for the end customers and because of that role requires objectivity, open mind as well as ability to collaborate with all the stakeholders (Pekkarinen, Holma, Kowalkowski, Santema, 2013).For managing supply chain accounts, sales, marketing, finance, production, and other departments coordination is required. For effective management of supply chain manager should have the relationship management skills. Customer relationship management and supplier relationship management is fundamental for a successful supply chain management. One of the key competencies is having an interpersonal skill that is an ability to communicate, influence, manage, coordinate, facilitate and persuade people. The ability to challenge the existing process, procedures, and policies is a competence of people who manage supply chain management and that can improve the performance of supply chain. So the purchasing and supply chain professionals must have these skills and competency to develop and promote supply chain (IBM Knowledge Center, 2014). Improving the procure to pay processHandfield (2006) illustrates five steps for improving the pay process:Provide standard and robust processes and training.Improve onsite relationship managers.Create simple online portals for minimizing the human intervention.Improve forecasting.Reduce the complexity in buying channels and catalogues.Detailed analysis shows that for step 1 the roles and duties of many people involved in process must be defined clearly. Training should describe how requests and invoices are processed and reasons about the avoiding the deviation from the standard process should be explained. This can ensure people to become more compliant and to understand the rationale and need for compliance. The process should also be simplified. If there is no requirement for specific channel it should be eliminated. The managers should be available to manage invoices, entry of services and other things. It is identified that many maintenance and project managers do not have time or patience to ensure that entries are put correctly in P2P system so there should be onsite relationship managers. These managers can work as liaison between suppliers and maintenance organization for ensuring that issues are solved, payments are prompt and processes are improved. The need of simple online portals is felt by many people, that enter information in systems such as sap manually. There are modules of purchasing and plant maintenance in ERP system. But they require customization that is a difficult issue to handle. If customization is possible, these modules should be used. There is a need to improve forecasting so that maintenance needs can be met. Many scheduled maintenance activities can be used for this purpose and these must be planned as well as communicated to suppliers. More often, data entered in to the system is incorrect and this happens due to lack of forecasting and planning and these matters must be taken in to consideration for designing a new P2P system.There should be reduction in complexity in buying channels and catalogues for streamlining the procurement process. There should be reduction in complexity in interface and channels of buying. The channels for procurement must not be many. There should be significant management support for streamlining the process of buying. There are also several steps and suggestions that certainly improve the P2P system in organization. Executives should take these steps to implement their initiatives. First of all, executives must secure the commitment and support of top management to initiate new P2P process, and have budget for it. Then, they should develop the key deliverables and benefits that are possible due to improvement in P2P Cycle. For a better P2P executives should map the existing problems and processes with cycle of P2P and identify the reasons of breakdown. They also should understand the needs of user groups as there are many people involved such as people from maintenance, project management, planning, suppliers and others and they can have the specific issues that must be addressed. There should be specific issues with many sites that also need to be taken care of while designing the new system (Karani, J., 2011). Key subjects matter experts must be brought together from every business unit and suppliers should also be invited to participate in the meetings to provide their valuable feedback for improving P2P cycle. The existing technologies such as SAP must be customized and aligned towards the business requirements and goals. After the work shop following, new process should be defined and pilot using a planned technology should be started. Training and deployment of other users should take place after previous step mentioned. The last step is monitoring, evaluation and improvement of the system. For this purpose it should be ensured that all catalogues are up to date, and there are periodic meetings with the suppliers and user groups (Interagency Procurement Working Group, 2006).Approval, contract and purchase order operationReview of contract is a necessary step in contracting. This is an independent advice that the acceptability of the procurement process will be undertaken or not. The approval of the contract must follow the next factors:There should be clear specification in terms of quality and quantity of goods from the suppliers. The contract offer should follow the fair, transparent and reasonable process. The approval should be done on this basis that offers of supplier adequately fulfil the business requirements of the company.The procuring authority has to check that the price quoted is justified in relation with quality of products. The process of identification of suppliers and selection of them should be done by researching their availability through internet, trade publication, and yellow pages. The list of potential suppliers should be developed after that (Handfield, 2011).For selecting the suppliers and forming contract with them, it is necessary to know their business competency, their primary customers, their financial abilities, their available facilities, their interest in serving company’s interests, and their state of art technology. After selection of suppliers, request for proposal than should be communicated to suppliers. The request for proposal must provide sufficient time for suppliers to respond. The bid should be that evaluated to select the most attractive proposal from the suppliers. In the purchase operation, it is essential to have good negotiation skills and purchase managers must do their homework, have clear understanding of company’s requirements and objectives, able to devise strategies, able to implement business goals, should know that where they can compromise and where not in negotiation, should have technical. Financial and legal competency and are able to make an effort to understand the strategy of suppliers and can determine that what supplier can gain from the negotiation process (Handfield, 2011). In addition, the contract signed by company senior officers and suppliers must have sound mind to negotiate on contract. There should be no deliberate hiding of facts and the persons involved in contract must agree upon the contract terms. If the misunderstanding is found in the contract in terms of nature or terms of contract, or about the identity of person or inability to understand the subject matter of contract, it cannot be justified as a contract. Free consent is important, That’s why it shouldn’t contain representation, fraud, mistake and undue influence. The contract object also must be lawful means there must not be any terms with suppliers that violates the laws otherwise the contract will be void (Europian Bank for Reconstruction and Development, 2014).. Types of purchasesThe different types of purchases are illustrated on the figure below.Raw materials that have lack of processing for making new products are one kind of purchase and this category involves purchasing of petroleum, zinc, lumber, coal, silver and gold. The next purchasing types are semi-finished products and components that are purchased from suppliers to make final products and the examples are assemblies, sub-assemblies, systems and sub systems.Figure. 1 Types of purchasesSource: CSCMP & Tate, 2014.The finished products do not require the major processing and these are furniture, carts, cars and computers. The maintenance, and repair items are the next purchase type that assists organization to make products and these are spare parts, office and cleaning supplies. The production support items are the next purchase type that is inserts, bags, tape and shrink wrap. The services are a kind of purchase that is required to support the business facility and the examples are customer support, legal, facilities and temporary labour. The purchase of capital equipment are the assets intended for use for more than a year and the examples of this kind of purchase are machinery, computer system as well as material handling equipment. The last purchase type is transportation and third party buying that is a specialized service type for managing the inbound and outbound flows of materials and the examples are ocean, truck, rail, multi model and 3PL. Purchasing policies and proceduresPolicy overviewThe policy overview should consider the organizational and governmental rules, and procedures of purchasing policy for better implementation of purchasing policies. Purchasing policiesMission statement. The mission statement should reflect that organization wants to procure highest possible quality of goods and services at lowest cost. For this purpose, necessary training about the requirements of purchasing process must be provided to concerned persons. There should be assistance in problem identification and findings of best solution with consideration of budgetary constraints (Ashfield Council, 2000). The purchasing policies rules and guidelines. According to Laserna (2012), the authorization limits must be placed to the respective persons who are liable for purchasing. There should be ethical practices in purchasing and there should be no undue advantage offered to any supplier. The purchasing system should be such that it provides best value for money. The procedures for purchasing must withstand public scrutiny. Author emphasizes importance of the providing an open competition to suppliers. The buyer must not give preferences to particular suppliers who purchase anything from company. Also buyer should not expect suppliers to purchase its products as a precondition for securing purchase contract. Unauthorized visits of suppliers or their contacting non purchasing personal must not take place for a fair purchasing procedure. There also should be a policy that business transactions should be prohibited with those suppliers who have employed the former employee of organization because of these former employee familiarity with the inside or confidential information about the company. The purchasing policies must support and develop the local sources of supply for fulfilling social obligation and minority business objectives. The purchasing policy must consider the environmental issue such as using the recycled materials and it should comply with local, state and national regulations. The purchasing policy should also mention how to properly dispose the hazardous materials. It is important for the purchasing policy to include the transparency and integrity factor and should support and develop those suppliers working to improve delivery, quality and minimize cost. Purchasing policies should provide an open communication base with suppliers. The purchasing procedure must comply with organization polices and must consider the sustainable management of environment. Purchasing policies must define service level as well as standard and quality of goods. Good practice Example: Best practices in diverse supplier developmentThe best practices in diverse supplier development are illustrated here.There should be sample support of the executive leadership that is helpful in setting the supplier diversity expectation. The executive leadership assists in making departmental manager more responsible to purchase by requesting them to submit spend report and evaluating them for their performance. There should be a higher level committee to monitor the purchasing activities (Ethical trading initiative, 2010). For promoting the diversity in supplier network, electronic procurement system must be used for ensuring transparency and accurate tracking of procurement and, as well as helping vendor for online registration and managing vendor directory. The electronic procurement system can send the notification to local and diverse businesses and that can also assists in promotion of diverse supplier management (Lorentz, Helen, 2009). There should be decentralized purchasing system to promote the supplier diversity. The training and motivation to staff must be offered so that they can be familiar with the various features of suppliers’ diversity. The supplier diversity demands positive relations and motivation so there should be awards and positive public relations with the suppliers and sanctions should not be imposed much. Organizations should encourage partnership with the suppliers to promote supplier diversity management and there should be strong relationship with the suppliers. There should be strategic usage of under threshold contracts to promote the supplier diversity. The subcontracting and 2ndshould be taken into consideration for supplier diversity. The barriers related with financing, loan guarantee and bonding must be eliminated. Comprehensive internal and external communication must be established. There should be supplier diversity development process established that should include executive relationship and one to one coaching. Tracking, goal setting and reporting must be established related with supplier diversity and continuous improvement plan must be implemented (Handfield, 2006). Purchasing procedures. On the figure 2 there are six steps that illustrate the purchasing procedures. Figure 2. Purchasing proceduresSources: Laserna, (2012), Ministry of Finance Government in India (2006).First step of procurement process is to identify opportunities for fulfilling the business need. In that material requirement such as equipment, raw materials, components or finished products should be determined. If there is service requirement that transportation carriers, hazardous waste handle by people, computer programmers and maintain service providers should be taken in to consideration.The second step includes the purchase requisitions and contains the description of material required, data and quantity required, estimated unit cost, operating account that has to charged, requisition date, required date, and authorized signature. The third step is to undertake the strategic analysis that considers the suppliers and internal customers for analysis of process to understand that where opportunities are present for value delivery and elimination of waste. The list of potential suppliers must be evaluated. For supplier’s assessment, their equipment and facilities must be checked that whether they are up to date and can be expanded in the future. The processes such as process cycle time, quality control program, working conditions and other must be taken in to consideration. The suppliers’ management capabilities such as project management skills, long term strategic vision, and their view point for the company, their leadership and other factors must be analyzed. Their information system are up to date or not and what kind of training is required should be checked. The supplier evaluation criteria should check the planning and control system of suppliers, their environmental regulation compliance and their products and services price, quality, service and delivery must be analyzed. After that a weighted point methods should be used to rank suppliers. Then is the tender invitation to selected suppliers and issuance of tender document should be administered. Tender receiving and awarding the contract to the suppliers is the next step. The last step is to administer the contract with suppliers. Supply management integration for competitive advantageInternal and external integrationThe internal integration is among the various departments of the company internally to enhance the competitiveness. The internal integration should be among the material department, production department and distribution department for creation of value network. It is found that internal integration can help company to realise a better performance. It can help in achieving costs, management of stock outs and reduction in lead time that ultimately enhances the performance of company and satisfaction of customers. Similarly, external integration that considers the suppliers, internal supply chain and customers (Gimenez, Ventura, 2003) is beneficial in achieving the timely delivery of products, lead time reduction, cost control and quality improvement. The critical role of cross-functional sourcing teamsThe critical role of cross functional team is crucial for the supply chain management. The cross functional team is created by the executive vice president and it is formed for a specific business need. It is made to deliver specific business outcomes and it consists of many functional representative and the cross functional team aligns towards the organizational goals than the departmental goals thus reducing the tension and conflict between the departmental managers and enhances coordination and cooperation. Here the functional team members work with collaboration. This smoothens the process of supply chain and delivers well for company because it consists of experts that address the complex issues of organization (Handfield, 2005).Integrating supply management, engineering and suppliers to develop new products and servicesThe integration of supply management, engineering people and suppliers can help to deliver new products and services as the internal integration, external integration, cross functional team and support of engineering department can eliminate the processes barriers and smoothens the process for delivery of products. It provides technical assistance for supply chain management and software such as SAP can be customized according to needs of supply chain management (IBM Knowledge Center, 2014).Purchasing and supply management organizationP/SM organizational structureThe supply chain organizational structure involves the horizontal and vertical differentiation. The horizontal differentiation takes care of separating the workers by task and they have different tasks assigned such as acquisition of raw materials, or finished goods and services items. The vertical differentiation provides workers different ranking on the basis of seniority and experience (IBM Knowledge Center, 2014) it should be more flexible and should assign tasks on the basis of competency of people. The ideal supply chain structure should be integrated supply chain to help company to take formal control on its suppliers by mergers and acquisitions, the integration can help company to create an entry barrier for the competitors and to reduce the costs of supply chain. Location of authority centralized or decentralizedThe location of authority should be a fine balance between centralized and decentralized. This can assist organization to promote suppliers diversity and control and monitor the activities of supply chain network. The decentralized location of authority is suggested because it takes care of local needs of departments and there are procurement managers and departments to purchase theirown purchasing (Karani, 2011) and the decentralized purchasing makes the purchasing managers more accountable in purchasing. So there should be an ideal combination of centralized and decentralized purchasing.ConclusionsIn order to understand how the purchasing role can be made effective in supply chain management, it is necessary to conduct a study that that examines all aspects of the role of purchasing in supply chain management. In the new century, purchasing has taken a prominent role and this is reflected by the strategic role purchasing plays. It assures organization for cost mitigation, improvement in productivity and stakeholder’s satisfaction. It helps to support business operation requirement by buying requisite products and services and assists departments for their better functioning. It also assures that products should be sourced at right price and from the competent source with right quantity. As the customer satisfaction and stakeholder’s profits can be ensured with effective and prompt delivery of products and services to customers and the distribution channel has become the very important element for success in market, purchasing department is playing the strategic role in catering the organization business objectives. Purchasing department assists in lean manufacturing and cost cutting and it creates strategic relationship with suppliers for continuous supply of products and services through partnership and merging with suppliers and making them a part of organization. Purchasing assists in manufacturing, physical distribution centers, research and development, information technology implementation, and in transportation and other services. As these departments play very crucial role for success of organization, it reflects the importance of purchasing in organization.ReferencesAshfield Council (May, 2000). Purchasing policy and procedures. Retrieved from http://www.ashfield.nsw .gov.au/files/purchasing_policy_and__procedures.pdfCSCMP CSCMP&Tate Wendy, (2014). The essential concepts of purchasing and supply management. Retrieved from http://www.ftpress.com/articles/article.aspx?p=2165644&seq Num=9Enporion Inc. (March, 2009). White paper: analysis of successful supply chain organization models. Retrieved from http://www.enporion.com/media/whitepapers/Enporion _Supply_Chain_Org_Whitepaper_03032009.pdf Ethical trading initiative (May, 2010). Step-by-step guide to reviewing and improving purchasing practices. Retrieved from http://wiego.org/sites/wiego.org/files/resources/files/ETI-Global-Trade-PP_step_by_step_guide.pdfEuropian Bank for Reconstruction and Development (October, 2014). Procurement policies and rules. Retrieved from http://www.ebrd.com/downloads/research/policies/ppr10.pdfGimenez, C. & Ventura, E. (2003). Supply chain management as a competitive advantage in the Spanish grocery sector. Retrieved from http://www.econ.upf.edu/~ventura/my-public-files/scm-gv.pdfHandfield, R. (2005). The critical role of the cross-functional team. Retrieved from http://scm.ncsu.edu/scm-articles/article/the-critical-role-of-the-cross-functional-teamHandfield, R. (2006). Best practices in the procure to pay cycle: perspectives from suppliers and industry experts. Retrieved from http://www. supplychainredesign.com/publications/practix032006.pdfHandfield, R. (2011). Role of procurement within an organization procurement. Tutorial. Retrieved from http://scm.ncsu.edu/scm-articles/article/role-of-procurement-within-an-organization-procurement-a-tutorialHandfield, R. (2011). The procurement process - creating a sourcing plan: procurement. Tutorial. Retrieved from http://scm.ncsu.edu/scm-articles/article/the-procurement-process-creating-a-sourcing-plan-procurement-a-tutorialIBM Knowledge Center (2014). Supply chain organization structure. Retrieved from http://www.01.ibm.com/support/knowledgecenter/SSZLC2_7.0.0/com.ibm.commerce.admin.business.doc/concepts/cbmsupplychain.htm Interagency Procurement Working Group (2006). UN procurement practitioner's handbook. Retrieved from https://www.ungm.org/Areas/Public/pph/ch03s08.htmlKarani, J. (2011). Centralized vs decentralized procurement: the case study of coca-cola. Retrieved from http://www.cips.org/Documents/Wed%20track%202%20John%20 Karani%20for%20screen.pdfLaserna, K. (2012). Purchasing policy and procedures. Retrieved from http://www. slideshare.net/Kitlaserna/purchasing-policy-and-proceduresLorentz, T., Helen, R. (December, 2009). U.S. countries procurement-based small business development best practices Retrieved from http://www.insightcced.org/uploads/ publications/assets/USCounties-bestpractices-supplierdiversity.pdfMinistry of Finance Government in India (August, 2006). Policies and procedures for purchase of goods Retrieved from http://finmin.nic.in/the_ministry/dept_expenditure/acts_codes/ MPProc4ProGod.pdfPekkarinen, S., Holma, A., Kowalkowski, K., Santema, S. (2013). Supply chain management and purchasing co-chairs. Retrieved from http://imp2013.robinson.gsu.edu/call-for-papers/regular-tracks/supply-chain-management-and-purchasing/
LGMT 682 ASSIGNMENT

LGMT 682 ASSIGNMENT

Question # 00106260 Posted By: Sirkonate Updated on: 09/22/2015 10:30 AM Due on: 09/18/2015
Subject Business Topic International Business Tutorials:
Question
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LGMT 682:

I) 7.2 - Discussion: Module 7
10 10 unread replies. 10 10 replies.

Post your answer to only one of the topics below. Begin your post with the question you are answering and then make your response.

 

    1. Many firms consider procurement to be a more strategic function than in the past. Why?
    2. There has been a lot of news lately about corporate social responsibility, safety, and procurement. Do you expect the trend toward socially responsible procurement to continue? Why or why not? Give one or more examples to support your position.
    3. Using the internet, look up one export management company. What services and proposed benefits do they offer?

Reply to at least two of your classmates on different topics than your original post.

 

CLASSMATES POSTS:

 

TIMOTHY,

  1. There has been a lot of news lately about corporate social responsibility, safety, and procurement. Do you expect the trend toward socially responsible procurement to continue? Why or why not? Give one or more examples to support your position.

Corporate social responsibility (CSR) promotes a vision of business accountability to a wide range of stakeholders, besides shareholders and investors. Key areas of concern are environmental protection and the wellbeing of employees, the community and civil society in general, both now and in the future.

The concept of CSR is underpinned by the idea that corporations can no longer act as isolated economic entities operating in detachment from broader society. Traditional views about competitiveness, survival and profitability are being swept away.

Some of the drivers pushing business towards CSR include:

  1. The shrinking role of government
  2. Demands for greater disclosure
  3. Increased customer interest.
  4. Growing investor pressure.
  5. Competitive labor markets.
  6. Supplier relations.

Some of the positive outcomes that can arise when businesses adopt a policy of social responsibility include:

  1. Company benefits:
  • Improved financial performance;
  • Lower operating costs;
  • Enhanced brand image and reputation;
  • Increased sales and customer loyalty;
  • Greater productivity and quality;
  • More ability to attract and retain employees;
  • Reduced regulatory oversight;
  • Access to capital;
  • Workforce diversity;
  • Product safety and decreased liability.
  1. Benefits to the community and the general public:
  • Charitable contributions;
  • Employee volunteer programs;
  • Corporate involvement in community education, employment and homelessness programs;
  • Product safety and quality.
  1. Environmental benefits:
  • Greater material recyclability;
  • Better product durability and functionality;
  • Greater use of renewable resources;
  • Integration of environmental management tools into business plans, including life-cycle assessment and costing, environmental management standards, and eco-labelling.( Corporate social responsibility, 2015)

I expect the trend for corporate social responsibility to continue and increase. This is not to say there are organizations that will still falter and not do their part. Some of the examples of companies putting the good in their business are:

  • Accessibility Partners works with private and public IT manufacturing companies, federal agencies and other organizations to test and review products that make information technology accessible to individuals with a variety of disabilities. More than 70 percent of the company's employees have disabilities themselves, so the company promotes disability advocacy in all of its operations
  • Cole and Parker donates proceeds from every sock sale to a fund that is used to provide small loans for entrepreneurs in developing countries.
  • Gift of Happiness has put its own spin on this approach, donating 5 percent of every purchase to the listed charity of the customer's choice
  • Headbands of Hope, sells made-in-the-U.S. headbands and donates a dollar of each sale to childhood cancer research through the St. Baldrick's Foundation
  • Mirage Spa and Recreation is able to encourage so many of its customers to take part in the company's philanthropic initiatives: Customers receive 15 percent off their purchase when they bring in food, pet supplies or personal care items for Mirage to donate to a local food pantry.( Fallon, N., 2015)

These are just a few examples of how corporations are involved in their social responsibilities. You have more recognizable programs like Make-a Wish and Habitat for Humanity.

I just wanted to mention there are also examples of companies using CSR’s as a way to gain public trust and present themselves in a way that the public views as acceptable. Corporations can use CSR as a:

  • Public Relations scheme to gain public trust and gain favorable opinions.
  • Way to circumvent governmental regulations
  • Ways to lobby against regulations
  • Self-interest of company and self

In conclusion, whatever your view is, people tend to help the unfortunate and are willing to help that in need. Companies know this and know the downfalls if they are perceived as having a bad record. Yes, CSR can help boost the perception the public has of their organization. For example, look at how the NFL promotes its self and players supporting the united way or attaches itself to programs like domestic violence after the issues of the abuse of several players last year, to overcome the perception of abuse by players. No business wants bad publicity and wants to present itself in the most favorable way to the public. Some CSRs are voluntary and others are dictated by circumstances.

References:

Corporate Social Responsibility., (2015), International Institute for Sustainable Development. Retrieved from https://www.iisd.org/business/issues/sr.aspx (Links to an external site.)

 

 

JOSHUA,

3. Using the internet, look up one export management company. What services and proposed benefits do they offer?

Amex Inc. is a twenty-five year leader in the field of international sales management, providing leading High Tech manufacturers with a full-service alternative to staffing and managing their own international department. We sell to customers and partners in over 100 countries. The firm's mission is to create and build World Wide, World Class international marketing and distribution channels for innovative technology based companies and their products.

Amex has over twenty years as an experienced export management company (EMC)

Create Markets and Optimize your international sales and Increase revenues with NO investment.

Amex's multi-lingual sales and marketing professionals create and build markets at the firm's headquarters in Minneapolis, MN, on the road, at trade shows or at regional offices in Amsterdam, Paris and London. Amex uses the latest in network and communication technologies to remain in constant touch with partners and customers.

Amex professionals are assigned to one of the firm's independent product groups: Networking, Telecommunications, and Diagnostic Medical Devices.

Our Partners who retain Amex benefit in the following ways:

  • Product introductions are lead by experienced professionals who have completed multiple market and channel introductions of technology based products.
  • Amex's experienced, professional sales force and established distribution network provide Partners with an immediate market presence that otherwise would take years to build.
  • Amex's knowledge and experience streamlines and speeds export licensing and regulatory approvals
  • Amex takes title and assumes the foreign credit risk, eliminating the high cost of managing complex international credit and collections.
  • The firm bears all fixed costs associated with an export operation, including inside and outside staff, international travel and communications.

Reference

http://www.amexinc.com/about.html (Links to an external site.)

 

 

 

PS: YOUR RESPONSE TO CLASSMATES POSTS CAN BE NEGATIVE OR POSITIVE. PLEASE RESPOND TO THEM AS YOU WAS TALKING TO THEM DIRECTLY.

 

 

II)

Submit your responses to the questions below (taken from the textbook's questions for discussion and review).

 

Chapter 6:

      1. Question 2 - Contrast procurement's historical focus to its more strategic orientation today.
      2. Question 3 - Discuss the benefits and potential challenges of using electronic procurement cards.
      3. Question 11 - Define supplier development, and explain why it is becoming more prominent in some organizations.
      4. Question 12 - What are the components of the global sourcing development model presented in this chapter?
      5. Question 14 - Pick, and discuss, two components of the global sourcing development model presented in this chapter.
      6. Question 17 - Name, and give an example of, the five dimensions of socially responsible purchasing.
      7. Question 18 - Discuss some of the ethical issues that are associated with procurement.

Chapter 14:

      1. Question 2 - How might a particular country's government be involved in international trade?
      2. Question 3 - Discuss how a nation's market size might impact international trade and, in turn, international logistics.
      3. Question 6 - What is a certificate of origin, a commercial invoice, and a shipper's export declaration?
      4. Question 10 - What is an NVOCC?
      5. Question 13 - Explain the load center concept. How might load centers affect the dynamics of international transportation?
      6. Question 20 - What is the Logistics Performance Index? How can it be used?

 

 

 

III) RESEARCH PAPER SUBMISSION: THE UPLOADED RESEARCH PAPER THAT IS UPLOADED WAS WRITTEN CLASS SINCE THIS PROFESSOR ALLOWED ME TO UTILIZE THE SAME TOPIC SO I CHOSE TO USE THE SAME RESEARCH PAPER THAT I WROTE FOR MY PREVIOUS CLASS. WHAT I NEED YOU TO DO IS TO CHANGE THE ENTIRE DOCUMENT AND THE REFERENCES AS WELL SINCE THE DOCUMENT WAS SUBMITTED TO TURNITIN, WHICH MEANS SUBMITTING THE SAME THING WILL BE PLAGIARIZING AND I WILL HAVE A ZERO....BUT I DO BELIEVE IT SSHOULDNT BE TO HARD TO CHANGE IT SINCE THE PAPER WAS ALREADY WRITTEN...SO AS A RECAP PLEASE CHANGE THE ENTIRE DOCUMENT WITH THE REFERENCES AS WELL AND KEEP THE SAME TOPIC AND FORMAT. RESEARCH PAPER ATTACHED !!!

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