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quality standards and good financial stability ANSWER ALL QUESTIONS (a) Examine three different sourcing approaches that could be used by the buyer at PEC to more effectively source safety products and materials from suppliers. (b) Explain how the new product development approach at PEC could impact on sourcing effectiveness. (c) Discuss the actions that the buyer could take to balance technical award criteria when selecting suppliers.

quality standards and good financial stability ANSWER ALL QUESTIONS (a) Examine three different sourcing approaches that could be used by the buyer at PEC to more effectively source safety products and materials from suppliers. (b) Explain how the new product development approach at PEC could impact on sourcing effectiveness. (c) Discuss the actions that the buyer could take to balance technical award criteria when selecting suppliers.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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with the complexity of the product range and the need for high levels of quality, she has found it difficult to influence sourcing strategy. Formal procurement procedures and systems at PEC are very limited. Currently, the buyer waits to receive a requisition from the production function to place orders for equipment, materials and products. This means that orders are usually urgent and the buyer has little opportunity to review alternative suppliers or sourcing approaches. Low value maintenance, repair and operations (MRO) requirements cause particular problems as the requisitions are difficult to aggregate. This causes excessive and time-consuming administration for the buyer. Testing requirements Pressure testing machinery used for testing the quality of seams in the protective work-wear is nearing the end of its life and will soon require replacement. Product testing is essential to confirm final quality of manufacture and conformance to industry standards. The test equipment is highly specialised and will be costly to replace. Also, recent machine maintenance highlighted both the cost and the long lead times of the MRO items required to keep the machine operational. If the equipment is not replaced, the test work will need to be outsourced to a facility specialising in this type of service provision. Supplier data Recently, the buyer has become concerned that some of her key suppliers could be facing financial difficulties. However, she is uncertain how to investigate the financial position of these suppliers. The information left by the previous buyer is several years out of date and the current buyer is concerned that their position could now be significantly worse. The buyer believes that she needs to research the supply market in order to gather more information on external supplier capabilities. This will allow her to identify alternative suppliers with the necessary technical and quality standards and good financial stability ANSWER ALL QUESTIONS ( a) Examine three different sourcing approaches that could be used by the buyer at PEC to more effectively source safety products and materials from suppliers. (b) Explain how the new product development approach at PEC could impact on sourcing effectiveness. (c) Discuss the actions that the buyer could take to balance technical award criteria when selecting suppliers. RISK IN INTERNATIONAL PROCUREMENT READ THE FOLLOWING AND ANSWER ALL QUESTIONS. The magnitude and the occurrence of risk internationally has pushed many companies to be resilient or sustainable by identifying and evaluating the various sources of risk. Previous case studies have talked about the challenge in purchasing of looking at both cost and other factors. This raises its head again when we consider purchasing from the locale or region. These have impacts on cost and other issues such as quality and delivery. As explained by one independent nursing home in the South West, the impacts may vary depending on what commodities you are purchasing. "We have very different ranges of procurement. Of these ranges, food constitutes the largest element. We have a group catering manager who was a former senior chef within our care facilities and she was promoted to this role to supervise the other chefs and coordinate and oversee the food sourcing, and procurement.” This use of a catering manager to take on a significant buying role had a key challenge. "The purchasing went from being outsourced through national providers to working with local suppliers. It was therefore important that we also kept a rein on this progression to working with multiple suppliers. We try and buy as locally and as fresh as possible now as our policy because in the past we had used a purchasing agency approach which was fine but the national suppliers were not getting a great quality, in spite of a good price. Local suppliers began to compete on a price level and some of the chefs began to revert to locals for the quality and so we made it a policy to source local. Also with the carbon reduction and decrease in pollution, it fits in superbly with our company ethos." QUESTIONS 1- Critically examine the above assertion ?
Transcribed Image Text:with the complexity of the product range and the need for high levels of quality, she has found it difficult to influence sourcing strategy. Formal procurement procedures and systems at PEC are very limited. Currently, the buyer waits to receive a requisition from the production function to place orders for equipment, materials and products. This means that orders are usually urgent and the buyer has little opportunity to review alternative suppliers or sourcing approaches. Low value maintenance, repair and operations (MRO) requirements cause particular problems as the requisitions are difficult to aggregate. This causes excessive and time-consuming administration for the buyer. Testing requirements Pressure testing machinery used for testing the quality of seams in the protective work-wear is nearing the end of its life and will soon require replacement. Product testing is essential to confirm final quality of manufacture and conformance to industry standards. The test equipment is highly specialised and will be costly to replace. Also, recent machine maintenance highlighted both the cost and the long lead times of the MRO items required to keep the machine operational. If the equipment is not replaced, the test work will need to be outsourced to a facility specialising in this type of service provision. Supplier data Recently, the buyer has become concerned that some of her key suppliers could be facing financial difficulties. However, she is uncertain how to investigate the financial position of these suppliers. The information left by the previous buyer is several years out of date and the current buyer is concerned that their position could now be significantly worse. The buyer believes that she needs to research the supply market in order to gather more information on external supplier capabilities. This will allow her to identify alternative suppliers with the necessary technical and quality standards and good financial stability ANSWER ALL QUESTIONS ( a) Examine three different sourcing approaches that could be used by the buyer at PEC to more effectively source safety products and materials from suppliers. (b) Explain how the new product development approach at PEC could impact on sourcing effectiveness. (c) Discuss the actions that the buyer could take to balance technical award criteria when selecting suppliers. RISK IN INTERNATIONAL PROCUREMENT READ THE FOLLOWING AND ANSWER ALL QUESTIONS. The magnitude and the occurrence of risk internationally has pushed many companies to be resilient or sustainable by identifying and evaluating the various sources of risk. Previous case studies have talked about the challenge in purchasing of looking at both cost and other factors. This raises its head again when we consider purchasing from the locale or region. These have impacts on cost and other issues such as quality and delivery. As explained by one independent nursing home in the South West, the impacts may vary depending on what commodities you are purchasing. "We have very different ranges of procurement. Of these ranges, food constitutes the largest element. We have a group catering manager who was a former senior chef within our care facilities and she was promoted to this role to supervise the other chefs and coordinate and oversee the food sourcing, and procurement.” This use of a catering manager to take on a significant buying role had a key challenge. "The purchasing went from being outsourced through national providers to working with local suppliers. It was therefore important that we also kept a rein on this progression to working with multiple suppliers. We try and buy as locally and as fresh as possible now as our policy because in the past we had used a purchasing agency approach which was fine but the national suppliers were not getting a great quality, in spite of a good price. Local suppliers began to compete on a price level and some of the chefs began to revert to locals for the quality and so we made it a policy to source local. Also with the carbon reduction and decrease in pollution, it fits in superbly with our company ethos." QUESTIONS 1- Critically examine the above assertion ?
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