Reference no: EM13792764

Question 1:

Ross Wood. Please respond to the following:

• Describe and explain the pros and cons of subcontracting logistics for a building or moving enterprise.
• Provide recommendations to Claude Dakin in Case 16-1.
• Explain, in addition to Ross Wood's reason, why taking over the responsibility for accounts payable might be the only way.
• Describe an alternative way and provide a rationale.

Question 2:

- Managing a logistical subcontract could be complex because of the lack of day to day oversight (CON).  However, with the responsibility being outsourced, internal resources can be focused elsewhere within the organization (PRO).  For example, the subcontract administrator would be able to take on other tasks within the organization since the responsibility for the subcontracted work is now the responsibility of the subcontractor.

- I would recommend that Claude Dakin prepare current accounts payable information in preparation of transitioning to the supply management division; as this could be worked into the plans Ross Wood has in place.  Since he will be subcontracting out a portion of the divisions work, his plans could be updated to maintain the necessary personnel to handle accounts payable.  This would work right into the plan of reducing headcount, while proving the process through centralizing the supply function.

- With the organization moving towards a centralized supply function, moving accounts payable to the supply management division is a logical step to further company improvements in that the benefits of doing so will allow for reduced transaction costs and headcount, and ensure that payments for suppliers are made timely.

- An alternative would be to keep the accounts payable function in the accounting office while maintaining the headcount.  If other divisions are reducing the headcount, as well as other functions being subcontracted out, then accounting department can reorganize and train to learn a more efficient way of handing the accounts payable function. 

Question 3:

Trends. Please respond to the following:

• In addition to joining a professional organization, discuss other actions you could take to keep yourself informed of the changes in the field of purchasing and supply management. Provide at least three (3) actions.
• Speculate on the future trends that will impact purchasing and supply management in the year 2020. 

Question 4:

      In addition to joining a professional organization, discuss other actions you could take to keep yourself informed of the changes in the field of purchasing and supply management. Provide at least three (3) actions.

• Speculate on the future trends that will impact purchasing and supply management in the year 2020.

In order to stay up to date in the field of purchasing and supply chain I highly recommend interaction with other professionals in the field. They have the day to day updates we normally hear about on business reviews. One can benefit greately by meeting other buyers, logistics managers, etc. Another way to stay ahead of the game of course is by reading business journals and staying informed on the market changes. You can read the newspapers or sign up to industry specific blogs or websites. Finally, a great way to stay informed in the field of purchasing is by sharing opinions with your coworkers (if you are a buyer), if not just ask any of the buyers in your company,. They will be glad (if they have time, usually very busy individuals) to give you a rundown of what the latest is on the company's supply chain strategy.  

By 2020 I see many changes in the purchasing strategies. Automation will be the key to perfecting supply chain solutions and what might be actually interesting to some of us buyers is that the administrative role of purchasing could become more and more an analytical role, rather than a business-supplier relationship function. I've included a link to a site which proposes a future for procurement.