INTERNATIONAL PURCHASE MANAGEMENT
ASSIGNMENT ON GLOBAL
SUBMITTED TO: PROF.KAVITHA.TC
SUBMITTED BY: VENKATESH
GLOBAL SUPPLIER RELATIONSHIP (SRM) is a discipline or set of strategic planning and managing with relation to the third party organization which supply goods / services in order to maximize the profit and reach the organization goal.
Global supplier relationship is under the broad category of supply chain management.
As the business is global , market for the manufacturer has been extended to domestic to global, increase in the market demand and the ...view middle of the document...
Increase in lead time is problem for the industries. Supplier are strategically divided into 4 groups, each group containing of six suppliers these suppliers are based on the location which is closest to the industries. To each group of suppliers 1 supplier relationship advisor is assisted, (Stock, 2001)
Thus all problem and issue are directly reported to the advisor then sorted out. Advantage of this is increase in the integrated performance and reduction in the administrative cost
Companies of all sectors are facing a rapid changes in the market trend due to changes in new communication technology and improved logistics has given the company a competitive advantage , improved banking services has eased the global supplier relationship. (Carroll, 2000)
Industries have to rethink the way of doing business, industries not only have to think about the internal department but also focused on the supplier’s relationship as well.
Some of the trends are business process outsourcing: Its one among the relationship management which helps in reduction in time during the process because of the integrated technology it managing selected process based on defined measurable performance metric is possible
Service procurement : it’s mainly used as the medium between supplier and buyer electronically ( web based) over 82% of the companies procurement process are their high aspects , transferring data electronically reduce in the time , these software are used for negation and buying process of company to suppliers. ((Gartner), 2004)
Contract management: the advantage of these is gaining more exposure and more competitive advantage among their suppliers, it also helps them in negotiation process of buying, which considered both buying side as well as selling side
Supplier relationship management is growing rapidly, developing their functionalities are the main aim of all the industries to survive in this competitive market especially in contract management, service procurement, intelligence and process integration ((Willcocks and Sauer, 2000)
“Supply Chain encompasses the planning and management of all activities involved in
Sourcing and procurement, conversion, demand creation and fulfillment, and logistics
Activities” (al., 2008)
In this paper the researcher has identified some of the important factors in “supplier relationship management and also has identifies that these 4 process may differ from industries depending upon their operation level” (. Hines, 1994)
The process are:
* Communication processes
* Supply chain planning process
* Process fulfilment (i.e logistics and inventory)
* Performance management
Communication, planning, fulfillment and performance management are the 4 factors which are considered to be important. (Krause), 2006)
By modifying these process the company can create operative interface depending upon business situation at each stage.
Different business situation require...