Management and Supply Function Essay

It should be emphasised from the scratch that acquire and completelyow for worry is executed as an integrated dissever of the besotteds broader management (as part of the logistics management or run chain management approach) *Purchasing and bring home the bacon PLANNING is part of the firms general plan, mainly because the continuous lend of raw materials components & work is of a strategic importance to the enterprise.The cede market is just as Copernican for the firms survival continued profitability as the sales market is the firms own product. Firms general planning must be integrated. *The ORGANISATIONAL building of the buying and supply sour should be aimed mainly linking into the firms overall structure in the some effective way. The purchasing and supply dish primarily renders a wait on to the enterprise. *Purchasing and supply COORDINATION should be aimed harmonising and aligning the activities of the purchasing and supply mesh with those of the oppos ite business functions.When a firm vests the authority for the purchasing and supply function in 1 person or team. Advantages gtStandardisation of materials and products is realizable because purchases argon made at one point gtPurchasing and supply staff argon afforded the opportunity to become experts gt stop over all aspects of the purchasing and supply function is improved gtAdministrative costs are reduced by eliminating duplication DECENTRALISED PURCHASING SUPPLY ORGANISATIONAL STRUCTUREPurchasing by unalike departments, branches or plants, while each of them enjoys an important measure of autonomy of decision making regarding the purchasing and supply function. Advantages gt break up liaision can be effected between decentralised purchasing and supply functions and the user functions of individual plants served by the purchasing and supply function gtThe take users can be better satisfied because the purchasing and supply function knows them better gtDifferent plants main tain their autonomy. Plant managers are often in full responsiblefor the profitability of individual plants.According to the combined approach, common requirements of the different plants such as equipment and certain categories of raw materials, are purchased centrally capitulum of office. The plants purchasing and supply functions are assisted by corporate purchasing and supply in developing policies, procedures, and control measures, recruiting and training staff, auditing the purchasing and supply performance of the plants.The main coordinating mechanisms of purchasing and supply management with other functions in the organisation, and with suppliers and customers, are definitely computer systems such as electronic data interchange(EDI), materials planning (MRPII) and distribution requirements planning (DRP). TWO TYPES OF COORDINATION Between purchasing and supply and other functional areas Purchasing coordination is lateral acts in an consultive/support method to the other f unctions in the enterprise. Between p and s and the supplier systemTwo dimensions to the coordination between p and s function and the supplier system. Firstly there is coordination with the whole supplier system and secondly with the individual suppliers. The flow of products and services from the supplier has to be effective, the p and s function has to ensure that coordination between them and the supplier ensures this occurs. This can be achieved by means of supplier alliances, integrated systems and inter-organisational teams. The supplier must become an mention of the buying enterprise.The chief coordinating mechanisms available to p and s management are open communication, strategic alliances, integrated systems, the conscious motivation of suppliers and standardization of specifications, purchasing documents and purchasing procedures. CONTROL PERFORMANCE EVALUATION OF THE PURCHASING AND SUPPLYFUNCTION Control may be defined as a systematic contract to reach objectives o r set standards that accord with the enterprises goal, to play along real perform- ance and compare it with the set standards, and to take corrective steps with a view to achieving the mission and goals of the enterprise.Objectives and basic principles of performance evaluation P and activities are complex, needs to have a control system. Feedback on actual performance(measured against quantitative norms). This ensures that the p and s strategy is implemented at the various levels in the company. With this the p and s manager can monitor and improve the functions actual performance. Control ensures that all the other functions with p and s work optimally.