Identify a company or industry that you are either familiar with or one with whi
ID: 358012 • Letter: I
Question
Identify a company or industry that you are either familiar with or one with which you would like to become more familiar. As a purchasing professional of the chosen company or industry, your job is to determine the type of purchasing organizational structure that can effectively manage procurement functions.
Write a 700- to 1,050-word paper that makes an argument for either a centralized or decentralized purchasing organization.
Analyze how your chosen structure will support the following:
Vendor sourcing
Supplier cost objectives
Supply chain integration objectives
Comply with local, regional, global regulations
Development of overall purchasing competency
Material forecasting and scheduling
Impact on logistics strategies
Format your paper consistent with APA guidelines.
Explanation / Answer
As a part of the purchasing or procurement team, one should be very much aware of the organizational structure with respect to the individual responsibility. To assign the individual responsibility, proper hierarchy should be defined where everyone should understand their job responsibility and should act accordingly.
There could be 3 level structure of the purchasing unit i.e. Executive, Manager & Director.
Executive’s role would be to bargain the item process and vendor sourcing and determine the supplier cost objective.
Manager in the team would take care of the SCM integration objectives and complying with the regional and local regulations.
Role of Director would be to take care of all the logistic and regulatory challenges including the forecasting and logistic strategies.
The entire system should be centralized and online so that every individual gets the latest update on actual inventory of the material which will also ensure the better co-ordination at different level.
Use of SAP or ERP based procurement system would be implemented and every employee across all the levels would have access and proficiency for these applications.
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