HIGHER NATIONAL DIPLOMA
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Assignment

STUDENT NAME | : | | EDEXCEL REGISTRATION NO. | : | |

PROGRAMME | : | HND | SEMESTER | : | 02 | UNIT NO./TITLE | : | 25 / Purchasing Management | ASSIGNMENT NO. | : | 01 of 07 | ASSIGNMENT TITLE | : | Supply Chain Management | UNIT OUTCOMES COVERED | : | | 1. Explain how the purchasing function contributes to the achievement of an organization’sobjectives 2. Use appropriate information sources and criteria to evaluate and select suppliers 3. Explain how an organization ensures that the regular quantities and quality of goods andservices are purchased 4. Explain the role of the major national and transnational organizations which influenceinternational purchasing. |

ASSIGNMENT TYPE | : | Individual | DATE | : | | DUE DATE | : | | DATE SUBMITTED | : | |

Final Grade | |

GRADING OPPORTUNITIES AVAILABLE:
OUTCOMES/GRADE DESCRIPTORS ACHIEVED (please tick when achieved) Outcomes/ Grade Descriptors | P15.1 | P15.2 | P15.3 | P15.4 | P15.5 | P15.6 | | | | | | | |

Outcomes/ Grade Descriptors | M1 | M2 | M3 | D1 | D2 | D3 | | | | | | | |

Assessor Comments: | | | | | | | | | | | | Assessor: | Signature: | Date:_____/_____/ ___________ | | | |

Internal Verifier’s Comments: | | | | | | | | | | | | Internal Verifier: | Signature: | Date:_____/_____/ ___________ | | | |

Plagiarism:While research and discussion are an essential part of an assignment, the deliberate copying of someone else’s work or unacknowledged copying from printed or electronic sources is NOT permitted. You may be subject to disciplinary procedure if you do this. You should sign this sheet to show that you comply with these regulations.

Student’s Signature: Date: _____/_____/ ___________

GRADE DESCRIPTORS - This assignment provides opportunities to achieve a tick in all three merit grade descriptors and all three distinction grade descriptors

Outcomes/Criteria for PASS | Possible evidence | Page No | Feedback | P25.1.1 identify appropriate structures to manage the purchasingfunction for a given organisation | (Task1.2) | | | P25.1.2 recommend purchasing systems and related performancemeasurement and benchmarking systems for an organisation | (Task1.1)(Task1.3) | | | P25.1.3 examine staffing policies used within procurement functionsand systems | (Task 1.4) | | | P25.1.4suggests ways in which IT can be utilized to enhance the efficiency of supply chain management. | (Task1.5) | | | P25.2.1 examine strategies used by organisations to develop andmaintain effective supplier relationships | (Task 2.1) | | | P25.2.2 devise effective systems for vendor appraisal | (Task 2.2) | | | P25.2.3 determine suitable strategies with regard to relationshipswith suppliers in line with organisational policies | (Task 2.2) | | | P25.2.4 recommend make-or-buy decisions | (Task 2.3) | | | P25.2.5identify and assess techniques for the purchase of capital goods. | (Task 2.1) | | | P25.3.1 describe how negotiations with suppliers are conducted to obtain goods or services at acceptable costs | (Task 3.1) | | |

Outcomes/Criteria for PASS | Possible evidence | Page No | Feedback | P25.3.2 propose channels of distribution for the transport of two different types of goods | (Task3.2) | | | P25.3.3assess the procedures used by an organisation to ensure the security of goods and safety of organisational personnel. | (Task3.3) | | | P25.3.4 describe how negotiations are carried out with external parties to ensure that goods/services are purchased to budget | (Task 3.1)(Task 3.3) | | | P25.4.1 assess the influences of purchasing activities of the majornational and transnational organisations | (Task4.1)(Task4.3) | | | P25.4.2 investigate methods used by two different organisations to develop relationships with foreign supplies | (Task 4.2)(Task 4.5) | | | P25.4.3 explain the role and services provided by specialists ininternational purchasing | (Task 4.1) | | | P25.4.4 assess the advantages and disadvantages of global sourcing strategies | (Task 4.5) | | | P25.4.5describe how cooperate social responsibility initiatives have affected purchase-supplier relationships | (Task 4.4) | | |

Outcomes/Criteria for MERIT | Possible Evidence | Page No. | Feedback | M 01 – Identify and apply strategies to find appropriate solutions | * Effective judgments have been made Evidence for the effective judgments made by the student. | | | M 02 – Select/design appropriate methods / techniques | * A range of source of information has been used Proper references have been included in the document. | | | M03 – Present and communicate appropriate findings | * The appropriate structure and approach has been usedDocumentation is well structured , non-overlapping facts and consistent | | |

Outcomes/Criteria for DISTINCTION | Possible Evidence | Page No. | Feedback | D 01 – Use critical reflection to evaluate own work and justify validconclusions | * Self-criticism of approach has taken place Give a brief description of Self-criticism of approach thathas been taken place in the system, * Realistic improvements have been proposedGive a brief description about the improvement that can be made for the system. | | | D 02 – Take responsibility for managing and organising activities | * Activities has been managedAssignment activities have been planned, managed and organized according to a schedule.Eg: Gant Chart | | | D 03 – Demonstrate convergent, lateral and creative thinking | * Innovation and creative thought have been applied Receptiveness to new ideas is evident. Creative thinking | | |

Scenario
Supply Chain Management
Introduction
In today’s competitive environment, a company’s performance does not depend upon its capabilities alone. In the past decades, what had increased was: outsourcing, supply base reduction and consolidation. This has increased the reliance of buyers on their suppliers and has become the popular manufacturing strategy for companies. It is because of the increased dependence, that how main suppliers perform once in terms of quality, delivery, costs and services, affects the buying company’s performance. For instance, part shortages contributed to long production delays for Boeing’s 747 and 737 airplanes and a resulting loss of over $1 billion. Therefore, it is critical for a successful firm to understand a supplier’s capabilities and performance potential.

As the fourth-largest automaker in the world, “Toyota is committed to continuous improvement, looking forward to new tomorrows. Built-in car navigation system is getting more popular all around the world since it can provide a more convenient and safer environment for drivers. The aggregation of mapping data, for the navigation systems from Denso, is now available in almost every Toyota model in the UK.” (www.toyota.co.uk) Toyota’s navigation system supplier: “Denso, a $16.2 billion Japanese corporation, is the fourth largest independent automotive component supplier in the world.

Denso’s vehicle navigation systems perform complex spatial data processing and were used by car manufacturers such as Toyota, Jaguar and Cadillac.” (www.denso.co.uk) Moreover, Toyota is not the only buyer of Denso; but Denso is the only navigation supplier to Toyota. In this assignment, I will use supply chain theory to analyses how Toyota has managed its relationship with Denso and how Toyota can manage its supply chain better.

You are required to provide the following background information about your company in the introduction area.

* Brief introduction to your company * Nature of the Business * Nature of the products * Organizational structure * Customers satisfactions * Any other specific characteristics of the organization.

Clearly state all relevant assumptions regarding the nature of the business and any other information applicable for the selected organizational context and answer the following task.

Task 01 1.1 Develop purchasing systems for standard and non-standard items

1.2 Explain the organizational structure and possible organizational configurations

1.3 Describe how the efficiency of purchasing functions will be analysed in your organization

1.4 Briefly explain the involvement of Human Resource Management in your organization’s purchasing functions

1.5 Briefly explain the utilization of IT in the procurement and supply chain management activities

Task 02
2.1 Describe the different types of sourcing available and strategies formulated to manage them in Your organization.(i.e Consumables, capital goods, goods for resale)

2.2 What are the strategies used by the organization to develop and maintain effective supplier
Relationship and list the ways for vendor appraisals

2.3 What are the issues identified by your organisation when sourcing decisions made?
- Tendering
- Make or buy decision
- Subcontracting or outsourcing

Task 03
3.1Describe how negotiations with suppliers are conducted to obtain goods and services at accepted costs. 3.2What are the channels of distribution for the different types of goods?

3.3 Briefly describe the procedures used by the organization to ensure the security and safety. Task 04
4.1 Does the company’s purchasing activities influenced by national and transnational organizations Briefly explain.

4.2 Investigate the relationship with the foreign suppliers, Compare and contrast the relationships with the foreign suppliers with the competitors

4.3 Explain the role and the service provided by the specialist in international purchasing

4.4Describe how cooperate social responsibility initiatives have affected purchase-supplier relationships.

4.5 Asses the advantage of global sourcing strategy.

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