Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN: 9781285869681
Author: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher: Cengage Learning
Question
Book Icon
Chapter 2, Problem 1GPE
Summary Introduction

To explain: The steps in the purchasing process that are done electronically versus on paper.

Summary:

Company CC is the last remaining private bottler of Company CK. Company CC has come up with many innovations from the day onwards. Company CC is one of the 64 bottlers worldwide with 6,000 employees selling a case of coke for every four seconds.

The purchasing process:

The purchasing process encompasses all the activities as shown below:

  • Identification of user requirements.
  • Evaluation of the user needs effectively and efficiently.
  • Identification suppliers who are capable to meet the demand.
  • Development of agreement with those suppliers.
  • Development of the ordering mechanism.
  • Ensure that the payment process occurs promptly.
  • Ascertaining that the needs are effectively met and
  • Driving continuous improvement.

Expert Solution & Answer
Check Mark

Explanation of Solution

Steps in the purchasing process that are done electronically versus on paper:

Purchase request:

This step needs to identify and understand the needs of the customer. It involves filling out a paper form and going through the required approvals for the authorization process.

An ERP system works on the automatic creation of the documents online and the approval also does not require a long process.

Supplier selection:

The process involves the supplier to purchase the item that is requested. This will also result in a quote process if it is required to be initiated.

Purchase order:

In the manual process, it involves the dispatch to the supplier in the paper copy in situations of a manual process. There is an electronic notification if it is an electronic process.

Fulfillment:

The dispatch of goods to the organization by the supplier is carried out. The lead time will be decided based on the type of processing which is either electronic or paperwork.

Receipt of goods:

This includes letting go of the goods through a receipting process which matches the orders and checks for the correct quality.

Invoice and payment:

The paperwork provides a paper receipt while the electronic process will give an e-receipt.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
PS.53 Brother I.D. Ricks is a faculty member at BYU-Idaho whose grandchildren live in Oklahoma and California. He and his wife would like to visit their grandchildren at least once a year in these states. They currently have one vehicle with well over 100,000 miles on it, so they want to buy a newer vehicle with fewer miles and that gets better gas mileage. They are considering two options: (1) a new subcompact car that would cost $18,750 to purchase or (2) a used sedan that would cost $12,750.They anticipate that the new subcompact would get 37 miles per gallon (combined highway and around town driving) while the sedan would get 26 miles per gallon. Based on their road tripping history they expect to drive 13,000 miles per year. For the purposes of their analysis they are assuming that gas will cost $2.93 per gallon.Question: How many miles would the Ricks need to drive before the cost of these two options would be the same? (Display your answer to the nearest whole number.) (Hint:…
Choose one major approach to job design, and then discuss how best that approach can be utilized in either your current or previous employer, including a discussion of its strengths and weaknesses.
The results of your four plans will provide an indicative EOQ value. State this value and discuss in a precise manner, why it is not the exact, true value.  Additional calculations in the form of plans E, F etc. may also assist your explanation of the EOQ and can be included
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Text book image
    Marketing
    Marketing
    ISBN:9780357033791
    Author:Pride, William M
    Publisher:South Western Educational Publishing
    Text book image
    Contemporary Marketing
    Marketing
    ISBN:9780357033777
    Author:Louis E. Boone, David L. Kurtz
    Publisher:Cengage Learning
  • Text book image
    MARKETING 2018
    Marketing
    ISBN:9780357033753
    Author:Pride
    Publisher:CENGAGE L
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Text book image
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L