Purchasing And Supply Chain Management

Main Body

The purchasing and supply chain management is a process of designing, planning, executing, controlling and monitoring of supply chain activities in order to create bet value, competitive infrastructure and synchronising supply with demand and measuring performance of business. In other word it can be said that supply chain management is a process of delivering the right product and services, at the right time , at the right place and at the right cost of customer. In the context of Nisa retail private limited company, it performs an excellent programs of supply chain management. It has launched in 1977 and today it have 2500 local independence owned stores across the UK. It deliver consumer food and other products in the UK and meet customer expectation in an effective ways. The main objective of this cited firm is to deliver high standard product to right customer at the right time thus it formed various supply chain management strategies.

For the Nisa retailing company purchasing and supply activities play a very crucial role because only through these activities, corporation can gain effective success and growth in the competitive market. The entire benefit and success of organisation is largely depends upon purchasing function. As purchasing involves determining the requirements, obtaining the proper product, material, supplies and services in the right quality and right quantity, at the right place and time (Papadopoulos, and et.al. 2017). If company provides effective purchasing to customer then it directly posstively affect its revenue. In the context of supermarket retailer, purchasing function play a very significant role because with help of this function corporation can ensure that equipment, material, supplies and services are provided at the lowest cost commensurate to standard of quality and delivery. With help of purchasing, cited venture can minimise loss arising from duplication, waste, deterioration. It helps in keeping under purchasing polices, procedure and tactics that will make the above laudable objective. From retailer point of view, purchasing assists in maximise contribution to the competitiveness, profitability and earn market share by delivery right quality and quantity of product and services. On the other hand supply also play a very crucial role in the retailing business. With the help of effective supply function, Nisa can able to meet the actual needs and requirement of customers. It helps in reducing thereby making products readily accessible to the customers. It helps in boost customer satisfaction, if the quality is maintained throughout (Dubey and et.al., 2017). The major role of supply chain in the retailing business is that it aids in providing the services directly to clients thus it maintains the client relationship in the market.

The purchasing and supply chain management in the Nisa can largely affect by various components like plan, source, make, deliver, return, communication etc. Nisa requires a strategy on how to manage the resources in order to achieve their customer demand for their product and services. While cited firm operate supply chain management then it requires a systematic planning and strategy to monitor supply chain so that it can deliver high quality and value to customer. One another major factor of supply chain management is source because to create the product and services, company requires a sufficient quantity of sources. With help of high quality and sufficient quantity of sources, company can deliver effective services and customer satisfaction. One another major component is communication which helps the entire supply chain  improve members to share the same demand and operational information. With help of effective communication, supplier can easily understand the actual demand and solve the queries of customer (Pérez, Camargo, Rincón and Marchant, 2017). Proper management is another major component of the supply chain management. In order to manage effective supply and purchasing program, company requires a very systematic management function under which all process and activities are systematically managed. Management plays a very crucial role in the supply chain through which each activities  are systematically attained its outcomes. If there is improper arrangement of management then it directly negatively affect  profitability and company goodwill in the market.

The retailing organisation serve manufacturer by delivering his goods and services to the customers and creates a channel of information where customer's feedback, their expectations and point of dissatisfaction are shared with the manufacturer. Therefore, in the absence of sufficient sourcing, corporation can not properly mange its services in the market. In this manner, sourcing refers to a number of procurement practices, aimed at finding, evaluating and engaging suppliers for acquiring  goods and services. In the Nisa company proper sourcing and supply  is very important through which corporation can able to meet the actual customer requirement toward product and services.

In the context of Nisa,  while it takes decision related to purchasing and supply then finance play a very crucial role. In the absence of sufficient quantity of finance, retailing business can not survive its business activities and function. While Nisa take the decision related to supply and purchasing of raw material, equipment, procurement etc then finance largely affect it. In every business activities and decision related to supply and purchasing, finance largely influence organisation (Olson and Wu,  2017) If company have sufficient quantity of finance then it can take the decision of purchasing large number of product and services from the manufacturers. While Nisa have to take decision related to the purchasing of product and services then there are various kinds of concept which can affect the suppliers and retailer. Retailer have to take consideration on the various concept of purchasing like quality, prices, features, discount etc. Company haver to take all these consideration while it take the decision about purchasing. Prices of product and services is major concept because if prices of product and services are high then retailer can not increase the quantity of products in the company. Offers and discount is major concern while it give bulk order for product and services.

Negotiation is another major concern in the retailing organisation. It is  an open process for two parties to find an acceptable solution to a complicated conflict. While Nisa company take consideration in the purchasing process, then it may face various stages of negotiation which are as follows-

• Preparation and planning- It is a first stage under which both parties like manufacturer and retailer organise and accumulate the information necessary to have an effective negotiation. Both parties should investigate each other history and try top figure out what will they need to discuss in the session.
• Made offer- In this stage both parties engage with the offer. One party offer for particular agreement to another party. In this stage, time, price, discount and offer has also explained by one party to another party.
• Clarification and justification- In this stage both parties prepare to give particular justification about a topic. Each side will get a chance to explain, justify and support their original request.
• Bargaining and problem solving- In this stage, bargaining and negotiation states by the retailer as they try to convince to manufacturer for giving some more discount the product and services. The problem can solve in this stage by manufacture.

As per the above discussion it has been ascertained that there are various kinds of stages in the negotiation under which retailer have to survive in order to make effective order for purchasing and supply. In these stage, retailer must have effective quality , skill and knowledge  of convincing and negotiating so as it can effectively convince to other person. With help of effective bargaining skill and convincing skill, retailer can easily influence manufacturer for providing discount and attractive offer over raw material and procurement.

Nisa organisation should understand the concept and theories of supply chain management in order to get effective success and profitability. There are various basic concept of supply chain management which assist cited venture in effective manage the function and activities of supply chain management. As per its concept, a supply chain is the alignment of the firms that bring products and services to market. All stages involved directly and indirectly in fulfilling a consumer request (Kwon,  Hong and Kim, 2017) The supply chain not only includes the manufacturer and suppliers, but also transports, warehouses , retailer and consumers themselves. Supply chain management is a systematic, strategic coordination of the traditional business functions and the tactics across these functions within a particular company and across business within the supply chain.

In the context of purchasing and supply chain management, ethical consideration is very important through which both customer as well supplier can safely and securely carried out their purposes. In this manner, the major concern about the quality of product and services because if the quality of product and services is low then it directly affect customer health so product quality and standard is major concern in the purchasing and supply chain management. As per the ethical consideration, there should not any kind of harmful impact on the customer health due to the ineffective product and services. The entire process of supply chain management must be safe and secure which should not any harmful impact on the health on the customer. On the other hand all terms and condition should be fair and true. There should not any kind of fraud and misrepresentation about the deal of product and services. The organisation should always consider on the principles of integrity, transparency and confidentiality with customer. The retailer and manufacturer must share the true information to each other. There should transparency with each other related to prices, order , feature etc (Ramanathan, 2017)

As per the entire discussion about the purchasing supply chain management it  has been  ascertained that Nisa company have to take effective consideration on the various decision related to inventory, distribution, purchasing etc. On the other hand while company take the decision about product and services, quality, prices, features can largely affect the decision about the product and services.

Conclusion

The supply chain not only includes the manufacturer and suppliers, but also transports, warehouses , retailer and consumers themselves. Supply chain management is a systematic, strategic coordination of the traditional business functions and the tactics across these functions within a particular company and across business within the supply chain. From this report it has been ascertained that company can effective conduct the purchasing and supply chain management with help of effective decision related to distribution, inventory and product purchasing.

References

• Zhuo, H. and Wei, S., 2017. Gaming of Green Supply Chain Members Under Government Subsidies—Based on the Perspective of Demand Uncertainty. In Proceedings of the Tenth International Conference on Management Science and Engineering Management. Springer Singapore.
• Papadopoulos, T., Gunasekaran, A., Dubey, R., Fosso Wamba, S. and Childe, S.J., 2017. World Class Sustainable Supply Chain Management: critical review and further research directions.
• Dubey, R., Gunasekaran, A., Papadopoulos, T., Childe, S.J., Shibin, K.T. and Wamba, S.F., 2017. Sustainable supply chain management: framework and further research directions. Journal of Cleaner Production.142,.pp.1119-1130.
• Pérez, A.T.E., Camargo, M., Rincón, P.C.N. and Marchant, M.A., 2017. Key challenges and requirements for sustainable and industrialized biorefinery supply chain design and management: A bibliographic analysis. Renewable and Sustainable Energy Reviews, 69, pp.350-359.
• Olson, D.L. and Wu, D.D., 2017. Enterprise Risk Management in Supply Chains. In Enterprise Risk Management Models. Springer Berlin Heidelberg.

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