supply chain management.docx

Procurement 5 creating a subsidiary to equity sharing

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PROCUREMENT 5 creating a subsidiary, to equity-sharing joint ventures or entering into cooperative arrangements. It is essential for procurement officials to use the right sourcing business model that fits each buyer-seller situation. The process through which the government agencies purchase goods and services from the private sector is called public procurement ( Jacobs, Chase, & Lummus, 2014). The process occurs at the national and the regional level. The process will usually be subject to specific rules and policies covering how the relevant decisions are made. The relevant government officials follow a certain system for procurement. The system covers the method they use in making adverts for suppliers, the platforms on which they select their supplier and the process in which they estimate, evaluate and enforce the requirements given to the supplier. The primary objectives of this system will be to have a competitive advantage among suppliers and to minimize the risk of corruption. Conclusion In conclusion, a procurement process ensures that the company’s purchasing is competitive, fair and provides the best possible prices available in the market. Because of the efficiencies geared through a formal procurement process, procurement is an important systems component in a company’s overall management structure. Some problems on a company’s cash flow and balance sheet can be traced to problems with procurement, including holding supplies and inventory too long and having the terms of payables for supplies not matched to their respective receivables.
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PROCUREMENT 6 References Christopher, M. (2016). Logistics & supply chain management . Pearson UK. Flynn, A., & Davis, P. (2015). The rhetoric and reality of SME-friendly procurement. Public Money & Management , 35 (2), 111-118. Hugos, M. H. (2018). Essentials of supply chain management . John Wiley & Sons. Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin. Reis, P. R., & Cabral, S. (2015). Public procurement strategy: the impacts of a preference program for small and micro businesses. Public Money & Management , 35 (2), 103-110. Walsh, K. J. (2016). Shelter Procurement Strategies for Humanitarian Organizations: Global vs. Local (Doctoral dissertation). Witjes, S., & Lozano, R. (2016). Proposing a framework linking sustainable public procurement and sustainable business models. Resources, Conservation and Recycling , 112 , 37-44.
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