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The Role of Purchasing in Supply Chain ManagementResearch PaperStudent’s NameUniversity AffiliationTable of Contents TOC \o "1-3" \h \z \u Abstract PAGEREF _Toc431678037 \h 3Objectives of purchasing PAGEREF _Toc431678038 \h 4Roles and Responsibilities of strategic supply management PAGEREF _Toc431678039 \h 5Improvement of procure to pay process procedure PAGEREF _Toc431678040 \h 6The approval, contract and purchase order operation PAGEREF _Toc431678041 \h 7Types of purchases PAGEREF _Toc431678042 \h 9Purchasing policies and procedures PAGEREF _Toc431678043 \h 9Overview of purchasing policy PAGEREF _Toc431678044 \h 9Accountability and auditability PAGEREF _Toc431678045 \h 10Legality PAGEREF _Toc431678046 \h 10Integration of supply for competitive advantage PAGEREF _Toc431678047 \h 10Internal and external integration of supply PAGEREF _Toc431678048 \h 10Purchasing and supply chain management organization PAGEREF _Toc431678049 \h 11Structure PAGEREF _Toc431678050 \h 11Conclusion PAGEREF _Toc431678051 \h 12References PAGEREF _Toc431678052 \h 14AbstractThe research paper below focusses on the role played by purchasing in in the enhancement of the organization’s activities in relation to supply chain management. The paper has discussed fully the branches that can be identified from the purchasing, these include the objectives and objectives of purchasing, the role of strategic supply management, the purchase order operation, and review of the policies. The structure of purchasing and supply management has also been discussed in the paper. From the paper we have been able to see that purchasing plays a great role in an organization. The roles vary from the roles to the consumers and to all the stake holders like the management, employees and suppliers. We have seen also that the quality of products depend largely on the materials purchased for use in the production process hence purchasing has influence on the image of the organization. Objectives of purchasingOrganizations consider purchasing as a key function in enhancement of the organization and hence put aside a department that looks into the issues of purchasing. The organizations then goes ahead and lay down the objectives of purchasing so as to ensure that the functions of the purchasing department are justified. The objectives of purchasing should however be in line with the overall objectives of the whole organization. According to Cristina and Edite (2005) purchasing has several objectives that are found in most organizations.These objectives includeMaintaining continuity of supplyMaintain standards qualityAvoidance of duplication, waste and obsolescenceMaintenance of organization’s competitive positionMaintenance of the good image of the organization Developing alternative sources of supply. One of the objective of purchasing is to ensure that there is continuous supply, it makes sure that the materials are always available for the maintenance of production schedule and hence avoid the disruption in the production process. For the company to maintain the standards of the qualities in the goods they produce the purchasing should ensure that the materials purchased are of good quality so as to ensure that the products are not defective and in accordance with the goals of the organization. The purchasing also ensure that the goods purchased are not duplicated which may lead to waste of some materials and other expiring before they are used in the production process. The purchasing therefore checks the materials available and makes purchases as the need arises.Purchasing is made by the purchasing department and this department should always ensure that they examine the products that are coming for use in the production process. This is to ensure that the goods produced are of good standards as compared to the competitors and to ensure that the trust of the customers remain they should maintain the quality of products by having the right materials for production. The good image of the organization is highly depended on the image that is portrait by the agents that come in contact with the suppliers. The good image will translate in earning the trust of the suppliers and hence may lead to the discovery of better ideas or lowering of the cost of purchases is not improving the products. The bargaining power of an organization is increased when the organization has enough information on the market that is in. The alternative sources of supply give the organization a chance to minimize the cost that they incur in purchasing the materials. Roles and Responsibilities of strategic supply managementWhen an organization is created there are set goals and vision that are put forward and needs to be attained at a given period of time. The step by step layout of how to attain the goals in the supply process by the organization either short term or long term are put in place by the strategic supply management. The strategic supply management helps the business in the exploitation of the changes that occur in business environment (Andy et al, 2003). There is continuous change in the business industry and the organizations must be on the look so that they go with the changes occurring for them to survive and also succeed in their endeavors. There is always increase in the demands of customers and hence organizations should be willing and able to align their supply capabilities with the demands. The strategic supply management acts in place of the organization to ensure that the organization is serving the customer needs fully (Debora, 2015).For companies to face the geospatial and economic shift safely the strategic supply management should ensure that the economy of the world is well understood and should always be predicted so as to shift the suppliers on the favorable site. The management examines again and again the supply chain that is used in the company and ensure that it is in line with the present time. Generally the strategic supply management examines the changes that occur at all in instances of the business to ensure that the effects in the supplier chain are not affected. If the chains are affected then the management recommends to the organization on the ways to ensure that the organization remains in the market and its reputation is intact. The management can do this by identifying opportunities that help in cutting down the cost and ensuring that there is an increase in the produce by ensuring that redundancies are reduced or eliminated fully and also waste should be reduced (Andy, 2003). Strategic supply management also has the responsibility of leveraging the clients to use the technology that is available to increase efficiency and reduce the cost and the resources from the clients are also leveraged. Improvement of procure to pay process procedureMerchants in any business setting face possibilities of losing their money in the business due to the abandonment of goods. The reason for the abandonment may be avoided by following the following steps of improving pay process (Tobias, 2014);Have a variety of essentials- customers in any market setting have an expectation of having a variety of methods for payment to match the several variety of goods that are available. The variety of methods also gives the customers a chance to make a choice basing on their own taste and preference.Mind your language- the language that one uses may not only be a barrier but may also cause problems in the market since it may lead to misunderstanding in the process of payment. For instance the use of credit cards is accepted globally in the world but not every country accepts the use of this method. The cultural differences of people or a country has significant importance in the process of transaction hence should always be taken into consideration.Safety and security- every customer wants to have assurance that the money that they are spending will be put in good use and not lead to any problems. The lack of security in the payment methods in the organization causes suspicion and hence leads to the loss of customers.The approval, contract and purchase order operationWhen one is having a contract with the business the review process is always a necessary step ant it should have the following factors according to Susan and Penny (2004);The agreement should be between two parties and both of them should be at the right state of their minds while the review in being done. One of the party will be provider of the goods and services while the other party accepts the goods or service for an agreed amount that is to be paid by the consumer of the goods.The contract must be checked to ensure that it is a legally enforceable. The conditions must be enforceable in the law of the country. One must also look into the purpose of the contract to ensure that it is legal and the consultants should be registered with their respective bodies. Lack of registration of the consultants implies that one is undertaking an illegal contract and therefore should be done away with during the review.The parties should also be mentally competent and should by all means not be impaired by either intoxication or insanity. The respective organizations should authorize the consultants with the mandate of signing the contract on behalf of the organization.The specific objectives of the contract should be outlined touching on the quality and quantity of goods that will be received from the supplier and should be free and fair to both the supplier and the organization purchasing the goods.Organizations should always be advised to avoid entering into agreements without a written business agreement. The organization may not be able to claim anything from the other party if there was no written contract. The process of selecting the best person in a contract requires in-depth research on the available suppliers, one should understand the competence of the supplier, and the customers that they have been serving can also be contacted and asked about the services that they have been receiving from the supplier. In the selection process also one should consider the goals that the suppliers have and the strategies on achieving the goals. Look into the ways in which the company has attained its goals and make the right decision on the choice of the supplier for the organization. The legal competence as well as financial competence should also be looked into before going into business with a supplier. The contract also cannot be justified as a legal contract if the signatories are with a problem like in the case where they do not have a sound mind.Types of purchasesPurchases can be categorized into several types depending on the progress in the production of the final product. The several categories include; raw material purchase, semi-finished products and components purchase, finished products purchase, Maintenance purchase \, production and support purchase, services purchase, capital and equipment purchase and transportation and buying of another party.The purchase of raw materials do not require any detailed information since the goods are bought with an intention of using them in the production industry like the purchase of timber for the paper industry. The semi-finished goods are bought and taken to the organization for finishing and branding with the organization logo and information. Finished products are bought to the cases where the organization acts as a middle organization between the producers and consumers hence ensure the supply of goods for the consumers at all time. The items that support in production such as machines may be [purchased by the organization for the replacement of another machine or in the case where the organization has expanded and hence in need for bigger equipment for production.Purchasing policies and proceduresOverview of purchasing policyThe purchasing policy is found in an organization for a number of reasons. The reasons for the policy existence is well interconnected with one another. According to CIPS group (2013) for a given organization there stakeholders have an obligation to ensure that purchasing policy is legal, auditable and accountable, responsible both ethically and environmentally. The policy should also be economically effective.Accountability and auditabilityThe organization should at all times maintain a system. The system should be either electronic or manual provided it records all the transactions above the petty cash and the minor expenses which are allowable. The record should identify and provide the justification for the origin of the requirement, the purpose of the requisition made, the source of supply, the supplier’s contract and the route to be followed in the process of payment, showing who, when and where the payment will be made.LegalityThe process of purchasing a good or service should be in respect to the laws of the country, and follow all the relevant laws including not only the laws which govern the process of buying and selling. It also involve the laws on taxations and the department of purchasing should not be part of the team that evade tax and hence should always pay the custom duties. The department should also take part in the process of protecting the environment and providing employment to the people around and report any case of corruption. Integration of supply for competitive advantageInternal and external integration of supplyThe internal integration of the supply of products in an organization involves the process of bringing together of all the departments in the organizations to ensure the increase in the sales and reduce the cost. The sakes department can work well with the advertisement department by advising the department on the products that are facing more challenge and needs to be brought to the customer’s attentions to ensure its survival in the market. Also the department can be integrated with the purchase department to ensure that the goods produced are of the quality that is required by the customers at all times (Monczka et al, 2005).The external integration on the other hand brings the organization in order with the external world and hence can cope with the changes as they get the information. The management skills from another organization can also be borrowed by the organization and tried if it helps in the reduction of time and cost with increase in the efficiency. The skills help in the process of ensuring that the organization acts ethically and effectively in the legal sides also help in the communication process and the integration assists in the communication of the departments. To achieve integration the organization by ensuring that there is cross functional actions between the teams. The organization can also achieve integration by using the information systems to ensure that the work done is efficient. The performance should also be put in line with the objectives and the measures aligned with the goals for easy achievement. A council for the suppliers and buyer should also be formed to help in the process of integration. The councilshelp in ensuring that the needs of their respective organizationsare dealt with by the other party without fail. The council can also act as a steering committee that help in showing the organization the right way and strategies to be followed to increase production. The business can exponentially by ensuring that there are several communication flows between the departments andrespective stakeholders or external organization (Monczka et al, 2005).Purchasing and supply chain management organizationStructureIn the purchasing and supply chain management organization there are some component that are constituted. These factors include planning and controlling, having a complete work structure, organization structure, the flow of product structure, information flow structure and many more structures. The purchasing and supply structure acts as the overall structure that works for the organization as a whole involving the activities (Elva et al, 2012). The levels can be as shown below;333375018542000117157527114400206692523495Integration of materials/ production process00Integration of materials/ production process383857513970Assembling and branding 00Assembling and branding -5715033020Purchase of raw materials00Purchase of raw materials466725031940500SUPPLY 40386007620Distribution to consumers00Distribution to consumersIn the structure we can see that after the materials are purchased by the purchasing department the materials are passed to the production department and the materials are used in the production of a given product then taken to another department for assembling and putting the brand names. Then the produce is taken to the consumers by the supplies departments and also the sales department takes part during the sales in relation to the finance department.ConclusionThe role of purchasing is supply chain management needs to be studied deeply in order to have a good understanding on the functions of the purchasing. As we have seen in the strategic roles of purchasing it implies that there has been a magnificent increase in the roles played by purchasing. Purchasing helps organizations understand the improvements that come to them and the productivity and the ways of ensuring that the consumers, employees and management are satisfied. Several factors help in ensuring that the policies and ethical issues are followed when purchasing is being made and therefore the department is also governed by law and orderThe delivery of products in the right time and also delivery of quality products at a low cost has been the main evidence of the consumer satisfaction and purchasing plays a part in the process. The department of purchasing after they come together with the suppliers of the materials and hence may end up creating a good understanding with them. The result of good relation between the supplier and the personnel from the purchasing department may help the personnel get some ideas that are applied in the production. The understanding also has assured the organization in the understanding of their competitors since the same supplier may be serving the two and any understanding with the supplier can help them get a tip about the operation of the other organization. The purchasing department plays a great role therefore in assuring the development of the organization and hence an advanced study should be done. ReferencesAndy, E. & Rolf, S. (2003). Strategic Supply Management: A Growing Source of Competitive Differentiation: A. T. Kearney Inc.Cristina, S, R. &Edite, M, G. (2005). The Dimensions of Purchasing Competence: A Synthesis From Literature: Portugal.CIPS. (2013). Purchasing Policy and Procedures: Houston.Debora, R, W. (2015). Magic Quadrant for Strategic Sourcing Application Suites: Gartner Inc.Elva, S. & Jonas, H. (2012).Purchasing organizational structure and competence levelEffects on a category management project in a publiclyOwned Supply Company.Monczka, H. &Giunipro, P. (2005). Supply Management Integration for Competitive Advantage: CENGAGE LEARNING. Chapter 4.Tobias, S. (2014). Simple steps to improve your payment process: Ecommerce: PPRO Group.Susan, C. & Penny, C. (2004). Guide to reviewing Business Agreements and Contracts at Yale and other reference information: Yale University.
LGMT 683 RESEARCH PAPER

LGMT 683 RESEARCH PAPER

Question # 00148842 Posted By: Sirkonate Updated on: 12/09/2015 10:23 PM Due on: 12/12/2015
Subject Business Topic International Business Tutorials:
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I) RESEARCH PAPER SUBMISSION: THE UPLOADED RESEARCH PAPER THAT IS UPLOADED WAS WRITTEN IN ONE OF MY PREVIOUS 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 BY REWORDING THE OUTLINE AND CHANGE 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 BY REWORDING THE OUTLINE AND CHANGE THE REFERENCES AS WELL AND KEEP THE SAME TOPIC AND FORMAT. THE PAPER CAN BE REDUCED TO 10 PAGES SINCE I'M FOLLOWING THE INSTRUCTIONS OF MY NEW PROFESSOR.

Research Paper Guidelines

Guidelines for your Research Paper

Each student must prepare a formal 10 page research report paper on a topic of your choice related to global logistics or supply chain management. Your instructor must approve your specific topic within the given time frame. Your final paper is worth 100 points and contributes 20% toward your course grade. Your paper will be evaluated according to the criteria in the rubric linked in the submission activity.

Your paper should include the following:

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  • Demonstrating quality and depth of content
  • Organizing the report properly
  • Following formatting requirements):
    • Times New Roman, 12 pt. Font
    • Double Spaced
    • Use of Page Numbers
    • Title Page
    • Table of Contents
    • Appropriate labels on figures and tables
  • Demonstrating correct grammar and evidence of proof-reading, i.e., no spelling errors
  • Including a variety and documentation of references used; format for references follows APA Guidelines

Below are the due dates for all parts of your research paper:

    • Module 2: Submit topic for approval
    • Module 4: Outline due
    • Module 7: Rough Draft should be complete
    • Module 8: Final Research Paper Submitted (graded, worth 20% of total grade)

Required APA Format for Research Paper

The format for your research paper can be found in the current Publication Manual of the American Psychological Association(APA). Take this opportunity to become familiar with the APA Manual (Links to an external site.)and its format.

Review the grading rubric attached to the Research Paper Submission Activity (8.5) for detailed grading criteria.

Upon submission, your final paper will automatically be evaluated through Turnitin (Links to an external site.), an originality detection tool. Your paper will be checked against a database of millions of written works and provide feedback on originality. You may view your originality report; however, you will not be permitted to submit your paper a second time. Ensure your work is entirely your own and cite your sources!


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