E-Procurement and Supply Chain Technologies - Assignment Example

Question 1 The manner in which supply chain has been integrated with business development has increased the role and need of developing standards so that better productivity can be achieved. Identifying standards helps buyers to define the code of conduct which the suppliers have to maintain thereby bringing in uniformity in the supply process. Standards refer to a particular level which the supplier has been able to achieve and is communicated to the customer through logos or standard marks. Standards helps the customer to understand the product or services better and helps them to understand the minimum expectations which the product or service would provide. This helps to take better decisions as the products or services has undergone the required quality check and provides an opportunity for customers to feel safer and secure by purchasing it. Standards have become a powerful tool as it determines the degree of effort which has undergone in developing the product or service. It also acts as a point of communication as it helps people to understand the product or services. The standards which are used by organization should be further supplemented through the process of maintaining ethical standards by both the buyer and supplier so that the expectations which the standards should provide are achieved (Monczka and Jim, 2007). Organizations have looked towards standards as a process which helps to achieve uniformity and minimizes the chance of error. The different standards which have been prescribed are used differently as some standards are mandatory for organizations and have to be maintained but some are not mandatory. Based on the different needs and requirements organizations are free to adopt the required standards which would help them to ensure that better products and services can be provided. The standards which different industry and the players working in the industry adopt help to identify the detailed analysis of different things which needs to be part of the procurement process. The process looks at identifying the benchmark which the procurement process has to follow and helps to identify the gap based on different competencies so that appropriate steps can be taken to fulfil those. This helps organizations to work on areas through which they can work according to the determined benchmark so that the uniformity and better products and services standards are achieved (Handfield, 2007). Using the already identified standards helps organization to work on the predetermined parameters so that the different competencies can be used towards achieving those. Using standards ensures that the organization will be in a position through which they can understand that the customer would be willing to accept the product or services as it has achieved the required benchmark. The process would thereby enable to ensure that the bottlenecks which the supply chain process can put forward is reduced and would thereby help to develop better process through which better products and services can be provided. Different industry has to maintain different standards which are developed internationally as it helps organizations to abide with the different legal requirements. The food service industry and manufacturing industry which has identified GTIN, GLN standards are looked as mandatory standards which organizations aim to maintain. In a similar manner environmental standards like ISO 14001 and EMAS are mandatory for organizations to maintain working in different industry. The standards look at maintaining the environmental standards and aims towards ensuring that organizations contribute towards the organization (Wisner, Leong & Tan, 2005). The standards look at bringing forward the measures taken to reduce pollution, the manner in which green house effect is used and other similar standards so that the society on a large can be prevented. In a similar manner the food industry looks to have GlobalGAP where agricultural policies are adopted based on GTIN and GLN standards. This helps to ensure that the agri-products are fit for consumption and measures are taken to ensure that all the products which are developed are uniform. Organizations working in different industry thereby look to identify the standards which they need to adopt so that different gains can be garnered and better productivity can be ensured. Using the correct standards as identified above helps organizations to bring efficiency in the procurement process as the cost can be reduced which would thereby enable to ensure better savings. This would help to ensure that wastages are reduced and the bottlenecks which the system would otherwise present are taken care of (Trent & Monczka, 2005). Standards serve as benchmark and determine the minimum standard which every person associated has to follow. This ensures that both the buyer and suppliers are aware about the different benchmark and thereby simplifies the overall supply chain procurement process. In addition to it standards also acts as a check and provides an opportunity through which the organization can undertake steps at the correct moment so that overall supply chain process ensures effectiveness. The mechanism provides an opportunity to train the workforce and hire new employees capable of following the benchmark and achieving the required standards which have been identified. This would thereby enable better standards and would help the business to a large extent. This has thereby made standards to evolve continuously and new and better benchmarks are being added so that standards can be further developed (Ting & Cho, 2008). This helps both the buyer and supplier as the procurement strategy can be standardize and steps can be taken to improve productivity. Thus, standards act as an important determinant in the procurement strategies as it helps to identify the minimum benchmark which has to be followed. This would thereby help the different players to understand the different dimensions based on which they will be checked and they need to abide with it. This would thereby help the concerned persons to take appropriate steps so that the minimum standard which has been identified is followed and the process looks towards ensuring maximum customer satisfaction. This will ensure standardized products and services and will help to improve the entire supply chain process by integrating different factors through which better results can be achieved. Question 3 The era of globalization has integrated the supply chain network to such an extent that organizations look towards both local and global suppliers for procurement of products. The growing competitiveness and constantly changing consumer demands has made it mandatory that organizations resort towards identifying the ways through which the different product will be procured from both the global and local suppliers. Having a properly crafted out strategy which aims towards directing the business would help to improve effectiveness and reduce wastages. The global supply chain mode of sourcing is different from local mode of sourcing because of a distinctive character which the supply chain demonstrates. The value of the product and its competitive ability is largely dependent on the supply chain which is developed so using appropriate strategies to deal with it becomes imperative. The most important aspect while dealing with global and local suppliers is to ensure proper coordination and collaboration among the channel partners which includes suppliers, intermediaries and third party service provider (Trent & Monczka, 2003). This is an important aspect as dealing with it will ensure that the bottlenecks which the supply chain presents will be dealt in the best possible manner. Information technology is also helping in this regard as it provides an opportunity where decentralized business can be integrated into one and every detail in relation to the business can be gathered and used for better results. One of the important strategies which need to be integrated with technology is to improve the logistics so that better sourcing can take place. The problems associated with logistics specifically while dealing with global players is transportation issues, cross border issues and time to transport the goods. Usage of different technology like just-in-time technology, electronic data interchange communication and vendor management system would help the business to improve the issues associated with logistics (Wills & Huston, 2010). The same strategy also needs to be applied while dealing with local suppliers as it will ensure constant supply. Using different technology will help to ensure that the entire process becomes more effective and the different tools which the supply chain provides can be used for garnering positive results. The other important issue which needs to be addresses while dealing with global suppliers is issues associated with cultural and lingual differences. This aspect has little or no relevance while dealing with the local suppliers and can be easily handled but the same issues while dealing with global suppliers multiplies rapidly. The strategy here should be look towards mutual respect for each other which would include language respect, cultural respect and people respect so that both the parties are in good terms with one another. Using even translators who have the required technical expertise can be helpful as the different issues can be easily solved and better relationship can be established. This will help the supply chain to flourish as the different needs of the supply chain will be easily met. Similar strategies can be used while dealing with local vendors as having mutual respect and developing relationship is imperative if the long term success of the business is warranted. This will help the overall business fundamentals to be properly governed and would help to develop the supply chain network in a manner through which positive results would be achieved. The process of sourcing materials from global and local suppliers would also need an initiative where a defined process is identified. This will require people who take responsibility of the different decisions which are taken and identifies strategies which would help to reduce bottlenecks and provide bigger advantage to the business. Integrating different technology like just-in-time technology, electronic data interchange communication and vendor management system will be helpful as it will look at different process and management areas through which bottlenecks will be reduced and timely information would be available. It is important to have a predefined system as people associated with the business should be aware of the mechanism in which work would be carried out and should be thereby able to take useful decisions which would improve productivity. The other important step which needs to be taken is using real time communication tools. This will help to address the problems as and when they come across and would provide an opportunity to solve those issues (Trent & Monczka, 2002). Further, while working in the global business arena it would provide the business with an opportunity through which all issues will be handled in the best possible manner. As a result the overall results will be better. This has to be matched by identifying the standards which the suppliers need to follow. This will be applicable to both the local and global suppliers as it will define the parameters based on which different work will be carried out. Using different internationally and locally specified standards will help to measure the product based on it and would provide an opportunity through which timely actions will be taken so that wastages are reduced and productivity is improved. Apart from it the supply chain has to be integrated in such a manner that it is able to deal with the needs and requirements of both the global and local suppliers. The process would require that integration of technology and supply chain takes place at all levels so that the differences which are present can be removed (Aron & Singh, 2005). Identifying a process which is followed by all and is similar will ensure uniformity and would help to standardize the product and services. The overall mechanism would thereby be shaped as it would improve the manner in which different products are procured and would help to improve productivity as different aspect of the supply chain would be considered. Thus, the process of supply chain will need to undergo a lot of changes while dealing with local and global suppliers. The challenges and issues which the system presents is very high for global players as sourcing products from international players presents different issues which have to be addressed. This will require that technology and strategies are integrated in such a manner that effectiveness in the supply chain can be witnessed and overall mechanism through which the supply chain works is improved. Question 4 This section looks towards presenting the different issues which the organization was facing and the strategy which can be undertaken to improve it. The entire situation has been presented in tabular form for better understanding Issues Problems Solution Errors Mayday Healthcare was facing error with errors with regard to inventory management system, ordering correct products and overall management of inventory The organization can resort to inventory management system where technology is integrated with the ware house. Having designated space and piling inventory on top with better labels and stickers will help to improve the order management process. This in addition to continuous stock audit where physical stock is verified with stock books will help to improve productivity and reduce the errors which the organization is facing Delay Mayday Healthcare was facing issues with delay as during peak time the number of customers was increasing and the employee was unable to deliver the services at the appropriate time resulting in delay. The issue can be sorted out by using lean management technology as it will help to improve productivity. Identifying the issues as seen in the case where improving the reception area has improved productivity and reduced delays. Further integrating the technology to other department and sections will help to take care of the issues associated with delays and would improve customer service. Inventory Mayday Healthcare is facing issues associated with inventory due to high stock piling, expired inventory, improper labelling and poor order making process. The organization can resort to inventory management system where technology is integrated with the ware house. Having designated space and piling inventory on top with better labels and stickers will help to improve the order management process (Salleh & Mohammad, 2006). This in addition to continuous stock audit where physical stock is verified with stock books will help to improve productivity and reduce the errors which the organization is facing. In addition to it having a technological process of ordering will improve productivity as paper work would be reduced and overall stock management system would improve. Movement Mayday Healthcare was facing issues associated with movement of both employees and customer. This was primarily because of shortage of space and people carrying out multiple tasks which complicated the entire manner in which different functioning was carried out. This issue can be addressed by improving the ground space by eliminating unnecessary steps. The entire process can be coordinated in a manner where employee doesn’t duplicate the steps. This will help to save time and handling customers will be faster. Further, ensuring that one staff carried out the work from beginning to end will reduce the time to transfer from one employee to other for which the customer had to wait and movement was hindered. In addition to it the management has to look at expanding the reception area so that more and more people can be approached so that the overall mechanism which is being used to carry out the work is better. Duplication Mayday Healthcare was facing issues associated with duplication as every process was carried out multiple times. The same problem was faced in inventory management as well as mismanagement of inventory resulted in the work to be carried out many times. The issue can be sorted out by having designated employees who will be responsible for carrying out the work. Instead of passing on the work from one person to another and from one department to another the same person will be responsible for carrying out all the operations till the end. The process would also require eliminating the duplication work and reducing the time to deal with customers as back hand work can be carried out by other employees. Apart from it integrating technology and using better lean management techniques would help to fulfil the gap to a large extent and would improve the entire process through which different work is carried out. Miscommunication Mayday Healthcare was facing issues associated with miscommunication while managing inventory. This was on account of poor placement of inventory, poor or no labelling, ordering products which are rarely used and not having sufficient technological process to use inventory. The organization can resort to inventory management system where technology is integrated with the ware house. Having designated space and piling inventory on top with better labels and stickers will help to improve the order management process. This in addition to continuous stock audit where physical stock is verified with stock books will help to improve productivity and reduce the errors which the organization is facing (Van, 2005). In addition to it having a technological process of ordering will improve productivity as paper work would be reduced and overall stock management system would improve. This has to be followed by fixation of responsibility on employees and ensuring that the concerned person takes responsibility in case inventory is not properly managed. Underutilization of employee Mayday Healthcare was facing issues associated with underutilization of employee as their morale was affected due to different constraints. The employees were not able to work productively as lack of training and process was evident. The issue can be sorted by providing the required training to employees. This will improve their morale and would help them to work in a better way. The process has to be augmented by better people management techniques where people are specialized to carry out different activities (Christopher, 2011). Assigning roles and responsibilities to individual employees will bring the best out of the employees and would help to improve productivity. Apart from it developing a human resource management system which deals with the different issues that the employee faces will help to multiply productivity and would reduce wastages. This will motivate the employees to be more committed towards the job. Also having incentives for hard working employees and bonuses would enable to bring the best out of the employees and would thereby contribute towards effective business. References Aron, R. & Singh, J. V. 2005. Getting Offshoring Right. Harvard Business Review, 83(12), 135–140 Christopher, M. 2011. Logistics and Supply Chain Management. 4th Edition, Harlow, UK, Pearson Education Limited. Handfield, R. 2007. Reducing the Impact of Disruptions to the Supply Chain: A Managerial Framework Based on Observations from Multiple Executives. SASCOM Magazine, Industry Issues Monczka, M. and Jim M. 2007. What’s Wrong with Supply Chain Management?,” Purchasing, 122 (1), pp. 69-72 Salleh, A. L., & Mohammad, M. N. 2006. Benefits and challenges of worldwide sourcing:A study of Malaysian electrical and electronics companies. International Conference on Management for Growth and Development, 1-11 Ting, S.-C., & Cho, D. I. 2008. An integrated approach for supplier selection and purchasing decisions. Supply Chain Management: An International Journal , 116-127 Trent, R. J., & Monczka, R. M. 2002. Pursuing competitive advantage through integrated global sourcing. The Academy of Management Executive (1993), 66-80. Trent, R. J., & Monczka, R. M. 2003. Understanding intrgrated global sourcing. International Journal of Physical Distribution & Logistics Management, 607-629 Trent, R. J., & Monczka, R. M. 2005. Achieving excellence in global sourcing. MIT Sloan Management Review , 24-32 Van, A. J. 2005. Purchasing & Supply Chain Management:Analysis, Strategy, Planning and Practice (Fourth Edition), Thomson. Wisner, J. D., Leong, G. K., & Tan, K. C. 2005. Principles of supply chain management: A balanced approach. South-Western Wills, T. H., & Huston, R. C. 2010. Vendor Requirements and Evaluation in a Just-in-Time Environment. International Journal of Operations & Production Management , 41-50 Read More