Supply Chain Management

Supply Chain Management Order Description There are two Questions which are compulsory for this assessment Question No. 1 • The opportunities for the procurement and supply function to create savings or efficiencies or other sources of added value • How the profile of the function can be improved • How collaboration can be created with end user & suppliers to increase early engagement in the procurement process • The need for organizational policies and procedures to implement effective procurement and supply Guidance: • It should consist approximately 1500 word • Candidate number • Contents page • Executive summary • Reference and a bibliography Syllabus Coverage: • The different terms that relate to procurement & supply chain management and logistics • The roles and benefits of procurement & supply in organization • How effective procurement impacts on profitability or creating saving and efficiencies for the organization. • The typical proportion of costs accounted for by the procurement of goods and services • Internal and external customer and their priorities for procurement and supply • The inputs that internal and external stakeholders can make in procurement and supply • The conflicts of interest that can exist in the work of procurement and supply and how to deal with them. • The different objectives of a procurement and supply function • Achieving the triple bottom line benefits of sustainability (economy, environment, social development) through purchased goods and services and promoting responsible procurement through effective procurement and supply. • The documentation typically used in procurement and supply • The use of documentation policies and procedures for the work of procurement and supply • The need for approvals in the administration of requisites, orders and invoices • The use and roles of ethical codes in procurement and supply the principles of corporate governance that applies to procurement and supply • The use and purposes of financial budgets that impact on procurement and supply • The relationship between achieving compliance with processes and the achievement of outcomes that bring added value. Question No. 2 You are required to select an example of a category of procurement of a product, service or works bought by your organization. You are required to: • Research the market of your chosen category and review its size, scope and extent of competition • Summaries the demand and supply factors that impact on the chosen category of procurement • Explain the current pricing mechanism applied to the category and assess the factors that impact on the pricing of the category Guidance: • It should consist approximately 1500 word • Candidate number • Contents page • Executive summary • Reference and a bibliography Syllabus Coverage: • How markets can be defined in terms of size, scope and stages of development • The levels of industry competition such as perfect competition, imperfect, oligopoly, duopoly and monopolies • How demand and supply factors impact on organizations • Analytical tools to explain the impact of the external environment on organizations in supply chains • How macro-economic factors such as interest rates, inflation, exchange rates and the level of economic activity (GDP/GNP) impacts on organizations • The use of portfolio matrices to assess categories of expenditures and perceptions of the organization by suppliers • The main types of pricing arrangements in commercial agreement • The breakdown between direct and indirect costs • Types of published data that can provide information on costs and prices • Published reports and indices on markets • The comparison of quoted prices to historical data • The link between costs, prices, margins and mark ups • Negotiating improved prices/estimating whole life costs.