The present paper looks into the supplier relationship of BCAM which is being managed by Irwin family dealing in agricultural components. The paper will further study the outsourcing options available to the company, suggest a methodology and outline certain difficulties that the company may experience in global outsourcing. a) BCAM – Supplier Relation and Its Consequences Supplier development is a process where on partner in a relationship modifies or otherwise influences the behavior of the other partner with a view to mutual benefit (Crocker, 2009). British Consolidated Agricultural Machinery (BCAM) was established by Harry Irwin’s father hundred years ago during the period of mass industrialization manufacturing tractors and other agricultural machinery such as harvesters, balers, movers, seed drills, and sprayers. While reviewing the purchasing procedure at BCAM, it is revealed that orders are placed in bulk even though if the materials are not required for the purpose of production so as to avoid logistical time and costs. BCAM supplier development strategy was weak considering the fact they placed their orders with the suppliers who were associated with the company for many years. According to Crocker (2009) supplier development is necessary to develop the supply base in areas of recognized weakness, develop a long term relationship with few reliable suppliers, reduce the risk by sharing information, enhance the benefits of mutual goals and synchronize the overall process of supply chain process. This shows that the company’s transactions were limited to few suppliers and the relationship between both is adversarial as BCAM doesn’t pay them as agreed during the contract. Saunders et al (Swamidass 2000) mentioned that adversarial relationship is promoted when they operate at arm’s length with communication without personal contact and gains by one partner are seen as being at the expense of other contributing to apparent lack of trust and not ready to share information. According to Handfield and Bechtel (2002, reliance on trust at the interpersonal level may be conditioned by legal systems or organizational role responsibilities, mitigating the ability of parties to rely on trust as a matter of first preference. The relationship between BCAM and its suppliers exceeds their contract and operates beyond it resulting in breakage of supply chain management. The company had to face the consequences of such relationship as their orders placed by BCAM would not be taken as top priority leading to purchase departments failure to provide required material for production resulting in delayed customer delivery. The fact that both maintained cordial relationships and confidence on the suppliers side that they would definitely receive their payment made it possible to continue the transaction. Moreover, in such type of relationships, complaints are not addressed due to the negligence from buyers’ side as evidence in BCAM Company wherein complaints by purchasing department were snubbed by suppliers owing to late payments. b) Buyer Supplier Relationship Approach Organizations are more actively involving suppliers in their integrated development process and identify suppliers as a source of competitive advantage which means that there is an opportunity to develop and identify the factors that could help sustain or improve the relationship between the buyer and the supplier (Nellore, 2001). Developing partnerships with suppliers is
Cite this document
(“Procurement and contract management Coursework Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/31562-procurement-and-contract-management
(Procurement and Contract Management Coursework Example | Topics and Well Written Essays - 1500 Words)
“Procurement and Contract Management Coursework Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.net/finance-accounting/31562-procurement-and-contract-management.
Cited: 0 times
Procurement and Contract Management Supply chain management is the integration of key business processes from end user through original suppliers that provides products, services and information that add value for customers and other stakeholders (Lambert, 2008:2)…
The questions below will be addressed in the succeeding discussions: How the Contract Sum can be adjusted in accordance with the JCT form of contract? How interim valuations are made and how interim certificates are issued? How final adjustments are made to the Contract Sum and when the Final Certificate is issued?
The Procurement Law of 2006 was the government’s response to Sir Latham’s report that was published in 1994 and Sir Egan’s Report that was in itself published in 1998. The Procurement Law of 2006 was designed to prevent the occurrence of a pre-Latham and Egan report state of the construction industry in the United Kingdom.
Successful supply chain management requires cross functional integration and marketing plays a critical role (Lambert and Cooper, 2000). Procurement is extension of supply chain management allows the smooth functioning of departments engaged in the management process.
Procurement Cycle Model and Recommendations for Dove House Engineering Plc (DHE) Procurement cycle is related with the whole process from production to supply. For the duration of the procurement cycle, the producer places orders for components to suppliers that fill up the inventories.
The assignments were jumbled into five regions: Passenger, Cargo, Procurement, CX team (helping staff to increase productivity and acquire new skills) and Future Opportunities. A pointed e-Business Program me Office was established to direct the airline’s e-business projects.
This agreement has to be signed by both parties to allow for compliance during the whole construction process. Every construction process requires a system to procure the construction services, to be able to identify the correct system needed for any construction services; one has to be able to know the size of the project.
posing terms and conditions for the parties, but rather seek to enforce the wishes of the contracting parties as stipulated by the express terms, oral undertakings, or by the conduct of the parties (Stone R, 2009:23). In light of this therefore, provided all the essentials of a
These organizations, however, have the obligations and requirements to adhere to legal and ethical codes of operations in the climate of business arena. Other organizations also have their ethical principles and codes
15 pages (3750 words)Coursework
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Coursework on topic Procurement and contract management for FREE!