Answer To: Discussion 1: Make or Buy and Sourcing. Students will respond to the following:1.Imagine that the...
Robert answered on Dec 20 2021
Running Head: BUSINESS PURCHASING AND SUPPLY MANAGEMENT
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Business Purchasing and Supply Management
Running Head: BUSINESS PURCHASING AND SUPPLY MANAGEMENT
Business Purchasing and Supply Management
Name
Institution
Make or Buy and Sourcing
Pros and Cons of make or buy
The company is to gain full control over the costs and quality of the products produced. This will effectively assure the customers on the value of the products sold. In addition, this strategy would result in in-house handling of information that is to promote the company’s responsibility and control of security and confidential information. However, the company may have trouble in the employment and retention of formal labor, which can adversely affect its profitability. Moreover, the in-house information handling could limit the company’s output on its own resources limiting its desires of achieving significant economies of scale that is to sustain its profitability (“Explain ‘Make or Buy’ As A Strategy of A Company”, 2012).
The company’s information and technology system will be inward looking and no external contributions will be considerations in determining what is best for its operations.
Recommendation
It is recommended that the company shifts its strategies of gathering information regarding the reduction of hamburger costs to be both external and internal oriented. This is to result into a change of the ICT structure of the company.
Pros and cons of outsourcing
If the company adopts outsourcing mechanism, the costs of operation will decrease since outside service providers are relatively cheaper than in-house employees are. The company is to receive quality services since services provided by third parties are standardized. Access to specialized skills by the company is to be enhanced given that third-party service providers are experts in their service provision. The company’s exposure to risks associated with staff recruitment and hiring is to be reduced. On the other hand, the business is expected to incur language barriers when dealing with the customers and the third party expert is most likely to have limited knowledge of the company’s business operation (“Outsourcing: Pros and Cons”,2009).
This consideration is to cut down the company’s costs of operation and improve on the level of specialized staff recruited in the company.
Recommendation
It is recommended that if the company is to settle on this mechanism, it have to identify the nature of its customers where it intends to reduce the costs. This will help the company in identifying the type of staff to be employed in the particular markets to ease the communication process. This implies that the staff structure of the company is to depend on the targeted market.
Pros and cons of subcontracting
The company can get the contractor started on its desires at a very short notice irrespective of the large number of workers needed. Never the less the contractor is likely to undervalue the company’s business culture, a factor that can derail the motivation and commitment of the existing employees. In addition, contractors are relatively expensive as compared to permanent employees (“Using contractors and subcontractors”, n.d).
This consideration is to result in fewer permanent specialized employees being employed by the company.
Recommendation
It is recommended that the company implements this strategy for a short span of time to avoid speculative motives done by the permanent employees on the amount the contractor be paid.
Discussion 2
Part1
For Ms. Elaine Taylor to increase her and her staff’s knowledge in procuring management consulting services, she is supposed to carry out research on budget and costs control, contract management and operational efficiency.
Part 2
The patient care proposal required that Ms. Taylor get liaison person from the city administration to help her team in the consulting services, the Clarke-Hamilton recommended that a steering committee from the city management and Carson Manor administration be formed while the Standard care proposal required Ms. Taylor to uphold contact with the Management Staff of Carson Manor.
Part 3
It is suggested that Ms. Taylor recommend the City Administrator use the Clarke-Hamilton’s consulting services.
Discussion 1 Case 7-1 the Power Line Poles
Part 1
Bidding Procedure
Bidding is the process by which a business enterprise competes with other businesses for a given contract implemented to do a certain project. In this process, the contractor who is commonly known as the hiring company makes a comparison of the proposed bids submitted by the different business organizations from which a firm that meets the requirements of the proposal is selected (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Outline of The procedure
Identification of the Goods or Services that need procurement
The contractor who intends to obtain a business that will carry out the procurement process carries out this procedure. This provides the business organizations that opt to submit their proposals with a clarification on the nature of goods and services to be dealt with (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Preparation of the Invitation Bids
After identifying the goods and services, the contractor drafts a complex bid invitation document, which is accompanied by a statement of work document prepared earlier. The bid invitation document need to be as complex as possible for purposes of providing clarity on what the contractor expects to be done. The appropriate experience as well as the qualifications required need to be stated in the bid document (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Setting up the procurement Program/Schedule
The contractor comes up with the time limit, which will accommodate all the procurement procedures and tasks to be carried out. It is recommended that the completion time is be given an extension of approximately three to four days for purposes of accommodating any unavoidable circumstances that can occur (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Compiling List of Vendors
With the help of the directories and vendor lists, the contractor comes up with a list of vendors to whom bids are sent. For purposes of public relations, the contractor makes a public notice regarding the bidding process (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Issuing of the Invitation for Bid and Provision of Public Notice
The public notice defines the manner in which the invitation for Bid is to be submitted to vendors, the duration of notification process and full information of the contractor. Any additional information deemed relevant can also be provided (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Conducting Pre-bid Conferences and Site Visits, if Necessary
A pre-bid conference refers to the meeting conducted among the contractor and the potential vendors where a review of the bid specification is made. On the other hand, a site visit enables the vendor establish the relevant physical characteristics to the procurement process (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Bid Submittal
All bids submitted to vendors need to conform to the bid usage form and bid change form. In addition, the use of Oral, telephonic and faxed bids are not allowed. Bid responses in oral, telephone or fax form are not allowed. Bids that record deviations in their response should not be allowed. All bids must be signed before submitted, and submission must be in sealed envelopes preferably opaque ones (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Bib Receipt
Bid receipt to the contractor need to be timely and it is to the responsibility of the contractor to monitor the process. These bids should then be kept in secure and confidential areas until their opening time. Before due date of bid opening, the identification of the bidders who have handed in their bids at different periods remains a confidential matter. All bids submitted after deadline dates do not receive considerations (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Bids Opening
Bids are opened on the specified dates and each bid is read out publicly. Each bid’s information is then recorded for evaluation purposes. The contractor needs to allocate enough time for the evaluation process of the bids depending on the number of submitted bids, the complexity of the bids and the constraining factors to be experienced (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Bids Evaluation
Upon opening of the timely received bids, the contractor examines whether all vendors meet all the bid requirements. Bids evaluation is carried out to determine the lowest and responsible bidder. The evaluation process is carried out depending on the bid’s requirements that are important fro the procurement process (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Contract Awarded
Upon successful evaluation of the bids, the contract is awarded to the lowest identified bidder who then is required to carry out the procurement process (“Chapter 5. Competitive Sealed Bidding Procedure,” n.d).
Part 3
To What Degree Would One Insist on Utmost High Quality
Discussion 2: Quantity
Part 1
Application of the Basic Supply Management Principles to the Acquisition of Services In a “Best Buy” (fictitious) Restaurant
There are five basic supply management principles, which include knowing the customer, Adopting Lean Philosophies, Creation of a supply chain information infrastructure, integrating business processes and uniting decision support systems.
Knowing the Customer
There is need to understand the requirements of the restaurant customers to allow effective supply of the products. This process is supported by extensive research carried out on the potential customers using surveys, which helps the restaurant device ways of capturing their interests and needs. This principle helps the restaurant identify the different consumption patterns of its customers given that customer demands vary at greater levels. In addition, this...