Executive summaryThis report covers various strategies, procedures and recommendations that Grandiose Motors require to take into consideration in order to perfect their inventory and purchasing policies. This report summarizes the importance for purchasing and inventory management to structure properly the entire dealership network in order to increase efficiency and effectiveness of its operations. There is difference between purchasing and inventory management policies and procedures mainly due to variation of service parts and materials that are used. The availability and originality of parts and materials makes purchasing and inventory vary greatly.
Genuine parts purchasing and inventory policies require a lot of management due to their originality and adequacy of suppliers like the manufacturers and wholesalers. Other items like lubricants and oils do not require a lot inventory management due to their availability. They can be purchased anytime at large quantities without shortage due to high number of suppliers. This report also focuses on ways that supply-chain and inventory management can reduce investment and space requirements while maintaining high levels of service delivery. Planning and sourcing require to be managed properly in order to ensure there are no strains on the space and finances or investments.
This report recommends that proper purchasing and inventory management should be taken into consideration with proper care. Purchasing and inventory management should be as per the customers services and parts requirements. Seasonality should be a great factor that should be taken into consideration. The purchasing and inventory management policies for different service parts and materials are in most occasions different due to availability of those materials. It is important for Grandiose Motors to take into consideration that inventory and purchasing management policies and procedures should be different for diverse materials and items.
IntroductionInventory management is important especially when trying to protect production from running out of spare parts required in ensuring services are delivered as planned. Grandiose Motors requires putting into place strategic inventory supply and inventory management in order to ensure items and service delivered are up to standards and are perfect. Good management of supply chain and inventory is vital for Grandiose Motors to be able to acquire quality delivery of goods and services to consumers.
Grandiose Motors fourth dealership is of great significance as it supplies different makes of cars hence diversified services delivery. This calls for a different inventory and purchasing management of items. Grandiose Motors should take into consideration three factors that include maintaining high volumes of sales, adapting a “hassle-free buying experience” with “one price-lowest price”, and after sale service that is of high quality. High qualified trained staff, use of latest technologies, and using wide range of materials will also ensure delivery of quality service without delays in Grandiose Motors.
Purchasing and inventory management department should ensure support cost is hassle-free with only lowest price while providing right parts or items at the right time and ensuring reliability in after sale service. Operation and Production ManagementStructuring the purchasing and inventory functionsHoeffer (2004, p. 135) argues that Supply chain management in an integrated approach to producing, obtaining, and delivering quality services and products to consumers. Supply chain management includes materials management as well as cash flows and information flows. Inventory is extremely vital for Grandiose Motors to take into consideration.
Inventory which is stock of items that is kept in order to meet the demands in future, it is also important in knowing the number of orders to order and exact time to order. The fourth dealership by Grandiose Motor’s is of great significance as it would enable selling of multiple car makes at the same location. This dealership would enable selling several lines of cars including Volkswagens, Nissans, and Toyotas.