...'Procurement is essentially delivering value through relationships' Procurement and Contract Management This article is a literature review on the topic ' Procurement is essentially delivering value through relationships' . Procurement has been always considered to be the least among functions like Marketing, Finance, Human Resource Management etc...even though about 60% of the operating cost is for procurement and in cases like a manufacturing company it is even more. The recent Economic crisis has forced the top management to focus on this aspect of the business more carefully. This review explores the various aspects of procurement, in order to understand the concept of procurement some of the basic concepts like buyer and supplier, business relationships and customer value have been defined. Further I have tried to establish how procurement can add value to a business and to do this I have quoted examples from various business websites and journals. The review is also able to describe how a long term business relationship between the Buyer and Supplier can benefit each other both in terms of growth and financially. Every positive side has a negative side to it, I have been able to show some aspects of the negative side of it. Overall it can be concluded that procurement does deliver value through relationships. Introduction Procurement process is one of the most essential part of a business or a project. Through this process you are exposed to the potential market...
Words: 4513 - Pages: 19
...07133031 qi yang | Literature review Report | Course: Procurement &Contract Management BMGT43670Term: Jan 2012 semesterProfessor: David Staunton Student: Qi yang Student No: 07133031 Date: 20 March 2012 | “I the undersigned confirm that the work submitted here is entirely my own work, and that any work of others which is included has been properly referenced and acknowledged according to normal academic guidelines.” Table of Contents Abstract 2 Introduction 4 Why procure 4 How procure 8 Defining and initiating the contract 8 Planning the procurement 10 The tendering process and choosing the contractor 11 Finalizing and monitoring the contract 12 Conclusion 13 Reference 14 Abstract There has been a noticeable increase in the number of studies directed at explicating the drivers of procurement’s success in all kinds of industry and government agency. Since the fierce competition of market, there is high requirement not only for the speed of product and service desired, but also the quality of commercialization. So the procurement has come and is essentially delivering value through all kinds of relationships. This report shows why procurement is desired urgently and how the procurement process works. Procurement is the process of acquiring outside service through soliciting and evaluating proposals and establishing a contractual agreement which includes monitoring project work for conformance to the contract and closing...
Words: 4553 - Pages: 19
...people is a composite category. It includes different groups of people with varied economic and social background. However, the poor and extreme poor people are most affected due to their fragile economic condition, presence in risky locations and no potential for self recovery. They try to cope with the situation through multiple strategies. Firstly, austerity – mange situation with resources available (e.g. eat less, distress selling and desertation etc. ); secondly, forfeiture – make sacrifices to ensure survival (e.g. accept low wage for labour, accept bondage for advance payment of wage, send children to work for income, sell assets, leave home to seek job and income) and thirdly, requital – try accessing additional resources (e.g. seek loans, seek gift in kind, seek relief). Generally, disaster affected people do not perceive that they have any entitlement. They depend on immediate relief for the emergency period through NGOs, and GO. They are more dependent on the ‘safety net’ programmes of government as most vulnerable groups. CBOs – a community based formal set up, it is civil society non-profits that operate within a single local community. They are essentially a subset of the wider group of nonprofits. Like other nonprofits they are often run on a voluntary basis. It has ability to respond in emergency promptly due to its presence within the affected society. However, their capacities and resources are very limited. They play a supportive role to humanitarian agencies...
Words: 1181 - Pages: 5
...Procurement in Oil and Gas Industry in Developing Countries A Case of AGIP Nigeria Name Course Professor Date Abstract This is a thesis about procurement process in the oil and gas industry in Nigeria with specific stress on AGIP Nigerian AGIP Energy and Natural Resource.” The report starts with an introduction to the country Nigeria itself. It develops with the research on the oil and gas sector in the country and then focuses on the AGIP and its operations. Thus the first section comprises the Introduction, the background of the problem the research objectives, literature review regarding the procurement process and the company AGIP. The second section is about the research methodology, the data analysis and presentation of results leading to limitations and recommendations and a conclusion. A qualitative research design has been used to do the research. These research methods have been used by every researcher in a way or other and quality data has been accumulated to help these researchers to prove their viewpoint either statistically (quantitative) or by subjective analysis of earlier researches or direct observations of the subjects (qualitatively). The data sources used for the literature review for this study are primarily the secondary sources particularly from books, journals, articles published in various scientific periodicals and / or newspapers along with the information gathered from the internet itself using its websites. The study manoeuvres at two levels:...
Words: 12215 - Pages: 49
...VALUE CHAIN – CRITIQUE/FIRM LEVEL ANALYSIS INDIVIDUAL ASSIGNMENT – UNIVERSITY OF BALLARAT CHINTHAKA ARIYAPALA – ID 30100162 Brief Content Topic Page 1. INTRODUCTION...………………………………………………………………………….. 3 2. VALUE CHAIN FRAMEWORK-CRITIQUE…………………………………………………….. 3 3. MAIN ASPECT OF VALUE CHAIN ANALYSIS…………………………………………………. 3 4. PRIMARY ACTIVITIES…………………………………………………………………………………. 4 5. SUPPORT ACTIVITIES………………………………………………………………….…………. 5 6. LIMITATION OF VALUE CHAIN ANALYSIS………………………………………………………. 7 7. COMPETENCIES……………………………………………………………………………… 8 8. INTERNAL ANALYSIS THROUGH SWOT ANALYSIS……………………………………… 8 9. VALUE CHAIN ANALYSIS……………………………………………………………………….. 9 10. CONCLUTION…………………………………………………………………………………….……. 11 11. REFERENCES……………………………………………………………………………….…………. 13 Introduction The value chain approach was introduced by Michael Porter in the 1980s in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985). The concept of value added, in the form of the value chain, can be utilized to develop an organization’s sustainable competitive advantage in the business arena of the 21st C. All organizations consist of activities that link together to develop the value of the business, and together these activities form the organization’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and activities (Lynch...
Words: 2797 - Pages: 12
... Auro University Submitted For the Partial Fulfilment Of The Bachelors of Business Administration Semester – 5 In The Subject of Supply Chain Management (GMT-201) Submitted By: Sweta Patel Submitted To: Prof. Richa Agrawal October 2014 TABLE OF CONTENT Sr.No | CONTENT | Page No. | 01. | Executive summary | 04 | 02. | Company Profile | 05 | 03. | Reasons Behind Success of Parle | 05 | 04. | Marketing Strategy | 07 | 05. | Introduction to Company’s Product: Parle-G | 09 | 06. | Porter’s Value Chain: Parle-G | 11 | 07. | Co-operation Among Channel Members | 13 | 08. | Distribution Channel Network of Parle-G | 14 | 09. | Functional and Process Perspective | 16 | 10. | Supply Chain Process | 17 | 11. | Parle Distribution Network Logistics | 19 | 12. | Channel Members of Parle Distribution Network | 19 | 13. | Distribution Channel and Parle | 20 | 14. | Suggestion For Distribution Channel | 22 | 15. | References | 23 | EXECUTIVE SUMMARY The bread and biscuits constitutes the largest segments of consumer foods in India. Both Biscuits and Bread are items of mass consumption in our Country. Almost 2 million tons of biscuits are produced in India each year and consumption is growing at 10-12 per cent annually...
Words: 4151 - Pages: 17
...www.scp-uk.co.uk How Supply Chains Create Shareholder Value by Dr. David Lascelles, Supply Chain Planning UK Limited S upply chain management is no longer a boring Cinderella of the business world. Not since the mid-nineties when enterprises as diverse as Amazon, Cemex, Cisco Systems, Dell Computers and Zara started to create dominant competitive positions, build huge market capitalisations and delight their shareholders through the brilliant management of their supply chains. No, supply chain management has become a hot topic in boardrooms worldwide. The case histories of Internet retailer, Amazon; web systems builder, Cisco; PC giant, Dell; and Spanish fashion retailer, Zara are well documented. But Cemex, a Mexican cement supplier? Well, you don’t need to be in hi-tech or high fashion to reap the benefits of supply chain excellence. The effects can be just as dramatic for a commodity supplier. As a result of its supply chain performance improvement efforts, Cemex enjoys the highest value-to-sales ratio of the world’s six largest cement manufacturers. These enterprises represent just the tip of the iceberg. More than one study indicates that superior performing supply chains increase free cash flows – the key driver of shareholder value – by up to 20% on average. Supply chain excellence is a crucial engine of economic growth. And yet, even though it represents one of the most exciting opportunities to create value and build market share, the supply chain remains one of...
Words: 4557 - Pages: 19
...Supply Chain Management Final Report On Dominos: Supply Chain Network Contents 1. Food Service Industry in India 3 2. About Dominos 4 3. Dominos India 5 3.1 Competitors 6 3.2 SWOT Analysis 8 3.3 Porter five Forces Analysis 9 4. Methodology 10 5. A Typical Domino’s Store 10 5.1 Work Force 10 5.2 Organization Structure 11 6. Domino’s Supply chain: Providing a Strategic Competitive Advantage 13 6.1 Evolution of Dominos back-end supply chain 13 6.1.1 Old Supply chain 13 6.1.2 Revamped Supply Chain Model-2000 13 6.1.3 Current Commissary Operations 15 6.1.4 Vendor Management: 16 6.1.5 Insights on Demand Estimation from retail visit: 17 6.1.6 Inventory Management @ Dominos 18 7. Domino’s as a food service organization 20 8. Service Process Flow 22 8.1 Domino’s 30-minute delivery promise 23 8.2 Service Process flow 24 8.3 Pizza Order tracking 25 8.4 Standard Layout of the make-line 26 8.4 Service Blueprint 27 8. Issues & Recommendations 29 9. References 30 1. Food Service Industry in India The Indian food industry has been witnessing strong growth over past few years. Right now India is the world's second largest producer of food next to China, and certainly has the potential of becoming the biggest producer in the years to come. The total food production in India is expected to grow by leaps and bounds in the next decade primarily because of the growing segment of young professionals and...
Words: 6420 - Pages: 26
...Supply chain management helps organizations effectively satisfy customers. As a series of individual functions, the supply chain follows production from conception to delivering a product to the end consumer. The supply chain is made up of interconnected segments that must cohesively work in conjunction with one another in order to achieve the common goal. The point of a supply chain is to systematically orchestrate all parties, directly or indirectly, associated with turning raw materials into products and the distribution of those products, which includes transporting, storing, and supplying those products to retailers for customer consumption. Each link in the supply chain is valuable, interconnected, and interdependent. Although a supply chain can vary depending on the goods or services produced, this paper will explore the basic supply chain links and the value found in the raw materials supplier, manufacturer, distributor, retailer, and end consumer. The importance of managing the supply chain rests in the ability to give the customers what they want when they want it. Although it may sound simple, this task offers challenges when a business factors in the obstacles that can arise along the supply chain. For example, a manufacturer of automobile parts depends upon a supplier to provide the materials needed to build the part, but the manufacturer also considers the barriers that might hinder the supplier in providing the material for the parts. Hiccups in the supply chain...
Words: 1109 - Pages: 5
...This poor financial performance has led the firm’s management to question whether or not a strategic alliance might be a beneficial alternative to their current business model. To address the firm’s current quandary, this case has answered the following central question: Should NSY strategically align with key industry players; or, would organic growth be a more beneficial option for generating the additional value needed to once again realign the company with both internal and external expectations? Analysis of the situation focused on three strategic issues found to be key in determining the firm’s strategic options: NSY’s core competencies; their internal environment which encompasses the firms operations, structure and culture; and how the industry trend of consolidation might affect the firm’s positioning. Based on a thorough analysis, it is recommended that NSY forgo an alliance with an industry player, instead focusing on organic growth. This growth is recommended to first begin by reinvigorating their e-commerce approach. NSY’s website must deliver on the value that was originally intended at the firms inception. Second, it is recommended that NSY steadily grow their brick and mortar footprint throughout locations that typically see substantial industry activity. This growth is suggested to begin as regional, and as finances allow, spread outward from their home base in Spain. These recommendations will enable NSY to build a recognizable brand within the industry;...
Words: 4378 - Pages: 18
...sale – selling – but in the new sense of satisfying customer needs. Selling Selling or promotions are part of a larger marketing mix, the concept is typically practiced with unsought goods – those that buyers do not normally think of buying, such as encyclopedias and funeral plots it starts with the factory, focuses on the company’s existing product and calls for heavy selling and promotion to obtain profit sales. Consumers will not buy enough of the organization’s products unless it undertakes a large scale effort in selling and promotion. A selling oriented organization thus focuses on short terms results; because they care only for their sales not for customer’s satisfaction and they are not searching or looking for long term relationship with customers. 2. Goods and services Answer: Goods and services Goods (tangible, stored, production precedes, consumption, low customer contact, transported, quality is evident) Service (intangible, can't be stored, production and consumption are simultaneous, high customer contact, can't transported, quality difficult to judge) 1- Tangibility: - Goods are tangible and services are intangible. 2-Storability:-Goods are storable while services are non-storable. 3-Transportability: - Goods are transportable but services are not. 4-Simultaneity: - Goods are produced prior to their use by the customer receiving, while services are provided on the spot. 5-Customer contact: - Customers have low contact with the...
Words: 5886 - Pages: 24
...CONTRACT PROCUREMENT OPTIONS SUBMITTED BY EBITUNMISE DANIEL O. QSV/10/1220 COURSE CODE: QSV 512 7TH JULY, 2015 1.0 INTRODUCTION Strategies for the procurement of building projects have not changed significantly in the last 25 years, though time and cost overruns are still prevalent throughout the industry (Smith and Love, 2001). In a response to reduce the incidence of time and costs overruns, the disputes that may often arise, and the likelihood of project success, alternative forms of procurement method such as partnering and alliancing have been advocated (Love et al. 1998). Not all forms of procurement method, however, are appropriate for particular project types, as client objectives and priorities invariably differ (Skitmore and Marsden, 1988; Love et al. 1997). The objectives and priorities of a client need to be matched to a procurement system. To do this effectively, it is essential that the characteristics of various procurement systems and selection methods available are understood by clients and their advisors before a procurement method is selected. In this report, the characteristics of the most common procurement systems and methods are presented. In conjunction with this report the reader should also refer to the material developed by the New South Wales Government (2005) ‘Procurement Methodology Guidelines for Construction’ and the Western Australian Department of Housing and Works ‘Local Government Procurement Guide’ (2006). 2.0 PROCUREMENT STRATEGY ...
Words: 7778 - Pages: 32
... Published August 2012. If you would like to receive this publication in an accessible format please telephone 9651 0909 or email mailto:information@dtf.vic.gov.au Contents 1. Background 1 1.1 Context 1 1.2 Purpose – developing and managing project budgets 2 1.3 Scope of application 2 1.4 Structure of this guide 3 1.5 Related guides and frameworks 3 1.6 The need for an accurate project budget 4 2. Elements of a project budget 5 2.1 The headline elements of a project budget 5 2.2 Successful financial planning 9 2.3 The need for a whole-of-life approach 10 2.4 ‘Poor project planning’ risks are not project risks! 10 2.5 Delivering to budget 11 3. Foundations for good project budgets 12 3.1 Better business cases and better project budgets 12 3.2 Preparing to develop a project budget 13 3.3 Developing a project budget 15 3.4 Culture, incentives and governance 17 4. Developing base cost estimates 19 4.1 Essential ingredients for an accurate base cost estimate 19 4.2 Clearly defined project scope 19 4.3 Competent, experienced estimators prepared to certify their work 21 4.4 A...
Words: 21569 - Pages: 87
...of the changes, many multi-national corporations (MNC), in an effort, to remain competitive and sustainable are responding by creating global strategic management plans to address the competitive trends occurring in the market (Kim, Bak, & Bae, 2010). In fact, the aforementioned factors created a rich environment for firms to access new technologies, materials, customer bases, as well as, the ability to form business partnerships, globally (Russell & Taylor, 2011; Nembhard, Shi, & Park, 2000). Consequently, there has been a shift in the way business operations are performed and managed. Procter and Gamble Company (P&G), is an excellent example of an iconic firm maintaining a competitive advantage in global markets through the effective implementation of global operations strategies and management. In fact, P&G is the leading consumer goods firm, generating annually $84 billion in sales, operating in 180+ countries, spanning the Americas, Europe, the Middle East and Africa (EMEA), and Asia. In terms of manufacturing sites, P&G own and operate 32 US manufacturing sites located in 21 different states or territories and 102 manufacturing sites in 40 other countries (Personal Care MarketWatch, 2011; Procter & Gamble, 2014). However, global manufacturing firms are experiencing problem associated with schedule instability and demand. Consequently, these problems are resulting in...
Words: 2561 - Pages: 11
...Solectron Supply Chain Management Best Practice Background Solectron was founded in 1977 as the as the “Solar Energy Company”, and originally produced solar energy products. Today it is a worldwide provider of electronics manufacturing services to original equipment manufacturers (OEM’s). The company provides customized, integrated manufacturing services that span all three stages of the product life cycle, including pre-manufacturing, manufacturing, and post-manufacturing (see Table 1). These servies are now integrated to the point where Solectron is now responsible for all supply chain processes associated with sourcing parts, building, and distribution of electronics and systems for almost every major OEM customer in the industry. A list of primary OEM customers is shown in Table 2, which spans the telecommunication, networking, computer systems, peripherals, semiconductors, consumer electronics, industrial equipment, medical electronics, avionics, and automotive electronics industries. These industries are in different stages of maturity, with network manufacturers fairly new, and computer systems fairly mature. The diversity of major customers in this list is testimony to their success. In 1991, Solectron won the Malcolm Baldrige National Quality Award, reflecting the high level of performance achieved within this company. The company has also been honored with more than 100 recognition awards, 25 of which were received this year (see Table 3). The...
Words: 3634 - Pages: 15
