Answer

Introduction

The success of any business enterprise largely depends on the strategies that have been implemented towards the achievement of its objective. The lessons I have leant from the past modules together with the input from my friends strongly relate to the strategies that are applicable to business management and achievement of optimal performance specifically in supply chain management.

Operations Management and Electronic Purchasing

The threat of inventory exhaustion, scarcity of raw materials, intensive competition, political upheavals, technological changes or government’s interventions makes supply chain management an uphill task. The supply and demand patterns of most raw materials are unstable and their availability is in some instances unreliable (Johnson, Leenders & Flynn, 2011).

It requires skillful expertise in operations and supply chain management to guard against unprecedented supply interruptions and economic challenges to cope with new opportunities especially in international markets where some countries impose trade restrictions and taxes to create advantage to their respective home businesses.

I have learnt from the modules as well as from the discussion and the research that i have undertaken together with my colleagues in college the benefits of a world class procurement system. These are systems that are center-led with strategic sourcing, enterprise-spend management, supplier integration and diversity programs. Sound procurement systems are matched with others internationally after cross industry bench marking and which are also revised from time to time.

Center-led organizations are characterized by efficient central management team that coordinates and directs the organizations procurement department and the sourcing of the required goods or services internationally. The central management team is led by a competent product director and a team of sourcing specialists. This team reviews all the information concerning the required products both in the domestic and international markets. It’s documented that there are instances where companies have been able to reduce their production costs to less than 20% due to efficient center-led procurement management systems and effective enterprise-spend systems (Hoejmose, Brammer and Millington, 2012).  I have leant the benefits of ensuring that the costs of goods that are consumed in the production process are carefully recorded analyzed and their overall cost effectiveness evaluated comparatively to other companies in the same industry in the market.

The implementation of socially responsible supply chain management (SR-SCM) and corporate social responsibility (CSR) in business operations have proved to be highly desirable to the success of any business organization. Empirical research suggests carried out recently suggests that successful business strategies are mostly associated with clear supply chain management and also where supplier engagement is encouraged. Corporate Social Responsibility also contributes ostensibly to the favorable perception of the organization among the stakeholders in all the sectors of the economy hence improved sales and positive growth prospects. Improved corporate reputation has a positive impact on consumer choices, purchasing intensions and brand loyalty.

My experience with SR-SCM has enhanced my ability to implement the socially responsible SCM issues. These SCM issues must be interlinked with the organizations strategy so as to accommodate the organizations corporate image and also promote its reputation. Different priorities that are adopted by an organization define the organization’s propensity to invest and implement appropriate socially responsible practices as well as the incentives that are required to maintain the an efficient SCM system. For a company to remain competitive and gain advantage over its rivals in the same industry then it has to develop effective SR-SCM practices. E-procurement can be achieved using the latest software in SCM management processes that also ensure optimal material transportation and delivery systems. These soft-wares can be purchased as off-the shelf applications or tailor made to suit the specific needs of a particular organization.

I have also learnt that electronic purchasing has its challenges that must also be addressed and solved diligently. Calculation of profits can be challenging when using different soft-wares but using multiple purchasing software solutions one can identify the most appropriate software. Routine tasks can be tedious and error prone hence the use of electronic purchasing is highly recommended but effective control measures should still be instituted to ensure errors are eliminated. The evaluation and control of feedback information is one of the areas that i would like to improve or develop in this module. The SCM control systems on material transportation and delivery systems. Fuel consumption and mileage control are challenges that most businesses have to contend with. The reason why I would like to focus on supply of goods especially in crowded cities is largely because they can take hours and may lead to stock outages and excess consumption of fuel hence increased costs of production.

Sound procurement systems can reduce the production costs by almost a half of the current costs especially if the organization adopts SR-SCM systems and other center-led management systems. These systems should be matched with others internationally after cross industry bench marking and which should also revised from time to time (Scotti. n, d).

Strategic sourcing should be prioritized and proper systems adopted to ensure it’s effectively implemented. The team leader should be well placed among the top management directors in order to match the organizations SR-SCM policies with the organizations strategic plans. A company can improve its bargaining weight by consolidating and combining all its purchasing requirements into one volume.

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