Purchasing Development Assignment Example | Topics and Well Written Essays - 1500 words

Purchasing Development - Assignment ExampleFor instance, a oecumenic purpose purchasing formation might procure materials the way we want it to but doesnt give us a receipt of each various(prenominal) transaction (assuming we unavoidableness receipts for each and e real transaction). Design systems on the other hand are specifically designed from business to business and take into account all functionalities that are needed for a successful purchasing function. It is necessity that procurement systems be integrated in all processes and segments of an organization. This would save the organization a lot of time and money as whenever anyone would require something, all he needs to do is send a procurement request to the purchasing department rather than waiting for the purchasing department to figure out for itself when inventory count goes down and wait for them to reorder. Sometimes there might be moneymaking(prenominal) issues arising as a result of change in organizational business plans. For instance our organization might aim to cut down on its cost as a way to maximize profits. It might plan to do so by purchasing raw materials and other supplies at a pooh-pooh cost than usual. The procurement system here would need to consider whether switching suppliers to one offering a lower cost would still mean that the supplies are of the same fibre. It would also need to consider whether the supplier would be able to deliver on time and not back out at the very last moment and leave us doomed. Such decisions need to be taken by the procurement department bearing the find that a risk that a new supplier might default at any time James (2009) in his book Buying Complex Systems stresses how it is very necessary to properly define the objectives of the purchasing operations and make sure they support the strategic objectives of the company as a whole. For instance if an organization aims to differentiate its convergence by offering high quality products an d on the other hand the purchasing operation aims to save on money and therefore purchases low quality raw material then then definitely the general aim of delivering high quality products wont be met. The objectives of the purchasing operations need to be in line with the organizations strategy if the organization wants to prosper. Evaluate the current and future effectiveness of an identified purchasing operational system Im going to discuss the purchase operational system of the Aghas Supermarket. The mart is located in the posh locality of Clifton and caters to thousands of people on a daily basis. The store is divided into many sections like crockery and cutlery, food items, vegetables etc. The purchase manager is responsible for making purchases on an overall basis. The purchase manager has a team of people, each of whom is sent out by him to different sections of the market to see the parenthood requirements. The team surveys the section heads every(prenominal) second day and pens down the stock requirement on a piece of paper. The entire team meets the purchase operations manager the next and makeup to him about the stock requirement. The purchasing manager then places purchase orders and goods are obtained by the company the very next day. The current system isnt high-minded enough to deal with unexpected demand fluctuations. Miscalculations might be made by section heads while ordering stock and in the meanwhile stock outs may be experienced leading to nil sales and loss of