Concepts and Techniques of Management of Purchasing Function

Introduction

This assignment will encourage you to explore the major principles, concepts and techniques which are inherent in the management of the purchasing function in modern, efficient organisations. Learning outcomes on successful completion of this assignment you will be able to:

1 Explain how the purchasing function contributes to the achievement of an organisation's objectives

2 Use appropriate information sources and criteria to evaluate and select suppliers

3 Explain how an organisation ensures that the regular quantities and quality of goods (inventory) and services are purchased

4 Explain the role of the major national and transnational organisations and agencies which influence international purchasing.

Assignment

Focusing on a work role, previous work experience or a voluntary work position, using examples from your own workplace experiences where possible, and drawing on your studies of this subject, please answer ALL four sections below.

Deadline for Submission: Please see your time table

Please answer ALL four sections:

Section 1:

Explain how the purchasing function contributes to the achievement of an organisation's objectives You will need to:

1. identify appropriate structures to manage the purchasing function for a given organisation
2. recommend purchasing systems and related performance measurement and benchmarking systems for an organisation
3. critically evaluate an identified purchasing system and its contribution to organisational objectives
4. suggest ways in which IT can be utilised to enhance the efficiency of supply chain management

Section 2:

Use appropriate information sources and criteria to evaluate and select suppliers You will need to:

1. examine strategies used by organisations to develop and maintain effective supplier relationships
2. devise effective systems for vendor appraisal
3. determine suitable strategies with regard to relationships with suppliers in line with organisational policies
4. recommend make-or-buy decisions in given situations
5. identify and assess techniques for the purchase of capital goods

Section 3:

Explain how an organisation ensures that the regular quantities and quality of goods (inventory) and services are purchased You will need to:

1. describe how negotiations with suppliers are conducted to obtain goods or services at acceptable costs
2. propose channels of distribution for the transport of two different types of goods
3. assess the procedures used by an organisation to ensure the security of goods and safety of organisational personnel
4. describe how negotiations are carried out with external parties to ensure that goods/services are purchased to budget

Section 4:

Explain the role of the major national and transnational organisations and agencies which influence international purchasing

You will need to:

1. assess the influences on purchasing activities of the major national and transnational organisations
2. investigate methods used by two different organisations to develop relationships with foreign supplies
3. explain the role and services provided by specialists in international purchasing
4. assess the advantages and disadvantages of global sourcing strategies
5. describe how corporate social responsibility initiatives have affected purchase-supplier relationships