Week 1 Class discussion.docx

Week 1 Class discussion.docx - After reading the notes and...

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Unformatted text preview: After reading the notes and the chapter assignments, what are your thoughts about the purchasing function and the evolution of supply management in the 21st Century? The 21st century has had many factors contribute to the evolution of supply management a few examples are global completion, technology, working closer with suppliers, and education for employees. As the text suggest purchasing practices have evolved from simply reviewing a few suppliers’ bids to more complex and intensive practices. These changes are due to global competition and advances in technology most notably the internet. Buyers are able to do more research on suppliers and read reviews from previous customers. Purchasing agents are also afforded the ability to receive bids from companies all over the world because of advancements in technology. By implementing these new practices they save their companies money with reductions in cost on supplies. Another reason for change is buyers are building a relationship with suppliers that focus more on jointly pulling cost and working together to come up with new ideas. In the past the focus was to demand the cheapest prices possible from suppliers. These are just a few of the changes that has been brought on by the 21 st century, but they are good changes that help more than just the bottom line. Based on your experience or readings, discuss how Supply Management and in particular Supply Chain Management benefits organizations in the public and private sectors. Supply chain management can be the difference between success and failure for a business. The goal of supply chain management is to effectively collaborate with internal and external groups to coordinate activities and material flow across the supply chain from raw material to end user. It also focusses on mitigation and reduction of cost. It does this by establishing value-added measurements. Essentially supply chain management is making sure everyone is working together and getting the materials they need to do their job effectively. When done properly there is no wasted money, time, or materials. What are the salient factors that contribute to the successful implementation of a supply chain management initiative? The four pillars of supply chain excellence are human resources, organizational design, information technology, and measurement. Human resources ensures that the right people are hired, trained, and retained. Organizational design refers to how an organization is structured. Who does what job, how things are communicated, who is in charge, and what are the goals and objectives for that organization. Information technology is software and platforms that help support the supply chain from raw materials to end user. There is planning software which seeks to improve forecast accuracy and execution software that helps manage the physical flow from suppliers down to distribution. Finally there is right measures and measurement systems that helps quantify what creates value and establish goals for the business. Are supply chain management and the establishment of strategic alliance agreements with select suppliers more conducive to private sector organizations? What are your perspectives? Private organizations are better set up to enter strategic alliances with suppliers than public organizations. Public organizations by law cannot restrict access on most procurement activities. They have to allow veteran, small, minority and other business to make bids. Reviewing more bids takes more time, money, and resources slowing down the process, but could also result in receiving a lower bid. Private businesses do not have these restrictions. This allows private businesses to reduce the supplier base and develop mutually beneficial relationships with suppliers that focus more on jointly pulling cost and working together to come up with new ideas. This is advantage for the private sector. ...
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