Aspects of purchasing:

 

1. You work for an international defense organisation that also manufactures products for the non-defence sector. You have just won a contract in the Far East, which requires you to
purchase 30 per cent of components/assembles in the local market. Your engineering director has asked that a research study be done on suppliers in Vietnam. If you had to undertake this task how would you:
• Plan the research study?
• Undertake desk research?
• Undertake field research?

2. There is virtually no aspect of purchasing that cannot be the subject of a benchmarking exercise. With reference to organisations known to you, consider the following aspects of purchasing:
• Inventory control
• Purchasing training and development
• E-procurement.

a) What organisation does it best?
b) How does it do it?
c) What does your organisation need to do to catch up?
3. The procurement department is in an ideal position to be accountable for the value of inventory held in a business. That way, procurement and inventory management would be truly integrated. Do you agree, or is there an alternative approach (es)?

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