Management and Supply Function Essay Example for Free

Management and Supply Function EssayIt should be emphatic from the outset that buy and give management is executed as an integrated patch of the firms broader management (as part of the logistics management or supply chain management approach) *Purchasing and supply PLANNING is part of the firms normal planning, mainly because the continuous supply of raw materials components services is of a strategical importance to the enterprise.The supply market place is just as important for the firms survival continued profitability as the sales market is the firms accept product. Firms general planning must be integrated. *The ORGANISATIONAL social structure of the purchasing and supply function should be aimed mainly linking into the firms over on the whole structure in the most effective way. The purchasing and supply function primarily renders a service to the enterprise. *Purchasing and supply COORDINATION should be aimed harmonising and aligning the activities of the pu rchasing and supply function with those of the other lineage 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 possible because purchases ar made at one point gtPurchasing and supply round are afforded the opportunity to become experts gtControl over all aspects of the purchasing and supply function is modify gtAdministrative costs are reduced by eliminating duplication DECENTRALISED purchase SUPPLY ORGANISATIONAL STRUCTUREPurchasing by different departments, branches or plants, while each of them enjoys an important measure of autonomy of conclusiveness making regarding the purchasing and supply function. Advantages gtBetter liaision can be effected between decentralised purchasing and supply functions and the user functions of exclusive plants served by the purchasing and supply function gtThe needs users can be better satisfied because the purchasing and supply fu nction knows them better gtDifferent plants maintain their autonomy. Plant managers are often fully responsiblefor the profitability of individual plants.According to the combined approach, common requirements of the different plants much(prenominal) as equipment and certain categories of raw materials, are purchased centrally head 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 providers and customers, are unquestionably computer systems such as electronic data interchange(EDI), materials planning (MRPII) and distribution requirements planning (DRP). TWO TYPES OF COORDINATION amid purchasing and supply and other functional areas Purchasing coordination is later al acts in an advisory/support system to the other functions 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 standardisation of specifications, purchasing documents and purchasing procedures. CONTROL PERFORMANCE EVALUATION OF THE PURCHASING AND SUPPLYFUNCTION Control may be defi ned as a systematic attempt to reach objectives or set standards that accord with the enterprises goal, to observe actual 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 non-homogeneous 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.