The paper "Procurement and Purchasing Strategies" is a perfect example of a case study on management. Corporation procurement strategies would help Rosewood Limited to achieve its strategic goals by helping the staff to perform their tasks more efficiently. The procurement strategy selection would offer Rosewood Limited the best value for their money. Some of the important factors that would influence the company’ s procurement system include the changing business landscape, the increasing effect of technologies, different limitations associated with the economic downturn, and the increasing awareness of issues associated with socio-environment. The electronic procurement (e-procurement) is not just a system for online purchasing but also for achieving considerable benefits like increased efficiency and cost savings.
By adopting the e-procurement system, Rosewood Limited would experience higher transparency and faster procurement process than traditional tendering and procurement methods. Kraljic’ s purchasing portfolio is clearly a suitable tool for visualizing, discussing, as well as demonstrating the likelihood of differentiated supplier and purchasing strategies. Determining whether to ‘ make or buy’ or outsources, the company must consider both the quantitative and qualitative factors. The quantitative factors are concerned with a cost; that is to say, the make-or-buy decision has to be personalized in order to fit the outsourcing situation.
On the other hand, the qualitative considerations involve not only service quality and also the need for long-term relationships between the subcontractors and business. Outsourcing would enable Rosewood Limited to effectively move into the new flexible organisational models resulting in a virtual corporation that influences empirical and conceptualisation analysis. Various e-procurement applications influence the relationship with suppliers differently but depend on the transaction stage in the procurement process and rely on the nature of service or product being procured.
It has been recommended that for the company’ s e-procurement and Supply Relationship Management (SRM) to be successful, the top management should offer active support, the cost drivers should be understood deeply, ensure cooperative supplier relations, and facilitate continuous improvement culture.
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