Purchasing and Supply Chain Management

Assessment 1
Nessa’s Bar Report

Course Code: BS1D75
Student Number: 08154619, 09046100, 09030883, 09046577, 09047735

Contents

Page
• 1.1.1 Problem – Poor Organisation on Purchasing and Supply………..
• 1.1.2 Solution - Poor Organisation……………………………………….
• 1.2.1 Problem - Purchasing Policy Procedures………………………….
• 1.2.1 Solutions - Purchasing Policy Procedures…………………………
• 1.3.1 Problem - Poor Management……………………………………….
• 1.3.2Solution - Poor Management………………………………………..
• 1.4.1 Problem - Costs/ Expenses………………………………………….
• 1.4.2 Solution - Costs/ Expenses…………………………………………..
• 2.0 Recommendations……………………………………………………..
• 3.0 Conclusion…………………………………………………………….
• 4.0
1.3.2 Solution - Poor Management
To solve the problem, the organisation could introduce VMI (Vendor Managed Inventory)

“VMI is a collaborative strategy between a customer and supplier to optimize the availability of products at a minimal cost to the two companies.” (Baily, P 181)

Suppliers take responsibility for managing the stock which is constantly monitored and updated. (Baily, P181) Time could then be utilised on other jobs rather than being spent on low value goods. This could be a problem as the supplier then controls the stock rather than the company, but any shortfalls would again become the responsibility of the company.

“Acronyms for VMI include: CRP (continuous replenishment programs), SAIM (supplier-assisted inventory management), SAIR (supplier-assisted inventory replenishment), ECR (efficient consumer response).” (Lysons, P357)

The organisation could outsource cleaning and security to professional companies as they would be more skilled and knowledgeable than the staff in the organisation.
“Outsourcing as: The strategic use of outside resources to perform activities traditionally handled by internal staff and resources.” (Baily, P115)

It can be considered that outsourcing both cleaning and security could be expensive and there is no guarantee as to the standards of the work carried out, but the training of staff to carry out these services could cost