The paper "Procurement Management and Developing Partnership" is a wonderful example of a Management Case Study. Appropriate organizational procedures should be put in place so that services of high quality can be obtained. Appropriate procedures help a firm to ensure that there are important strategic processes that facilitate the manipulation of resources to become value-creating strategies (Booth 2010, p. 34). Since knowledge is difficult to imitate, the only successful way of ensuring that valuable services are purchased is through the hiring of competent logistics companies or ensuring that the organization has skilled procurement managers who are able to evaluate the value of services before using them in business (Butter 2007, p.
78). The process of selecting the service provider Identification Before deciding on the best supplier of your company, it good to understand the specific services that should be outsourced (Wuhnis 2010, pg 119). Whilst Stone Wool Pty Ltd is looking for a service provider to be able to perform organization and transportation of resources. Having evaluated its contract with Logic Pty Ltd as financially unsound, the company has to start by identifying a new service provider.
This involves selecting a few suppliers in order to be able to assess their capabilities as well as comparing their prices. The supplier selection team should consider working with all potential suppliers to establish specifications (Bloomberg, LeMay& Hanna 2002, pg. 97). The needs of Whilst Stone Wool Pty Ltd is to have good organization and transportation services with a good financial agreement so that the whole process can remain economical unlike the one with Logic Pty Ltd. The key things to be considered here are customer service, reliability and responsiveness, delivery commitments and resource-saving. Measuring performance Another important step is to develop an audit and assessment program.
Before signing a contract with a new service provider, Whilst Stone Wool Pty Ltd should understand how the supplier has been offering previous services. In this step, the company will be able to understand the weaknesses and the strengths of the selected supplier before the relationship between the two become official. Gaining service provider feedback Feedback from organization and transportation provider helps to understand how it understands its operations and also to identify performance gaps (KucÌ Œ an& KraljicÌ Œ 2001, pg.
156). In addition to audit and assessment, the company should also consider monitoring the informative metrics that are able to direct value to the business. Such beneficial metrics include reduced cost of transportation and warehousing services. Logic Pty Ltd offered high-quality services but they cost of their services rendered the contract between the two companies unsound. In the new selection, Whilst Stone Wool Pty Ltd should evaluate feedback from the potential service providers to ensure a sound financial relationship (Dlantus 2006, 114). Achieving certification As the relationship between Whilst Stone Wool Pty Ltd and the potential service providers grow strong, it becomes easy negotiate on significant issues.
The service provider to develop the strongest relationship can easily understand the line of business of Whilst Stone Wool Pty Ltd and therefore, the integration between the two companies will enhance certification of the service provider (Dunstrus2007, pg. 115). Developing a partnership The manufacturer/supplier relationship is always at its best when the two forms a strategic partnership which allows a full understanding of the sources materials for the manufacturing company (Schuh 2012, pg. 217).
With a strong partnership in business, the service provider is able to anticipate the time to transport goods, organize for the required services in time, notify the manufacturer if any problem occurs when transporting goods, and the manufacturer is able to communicate production delays when there are maintenance services that are required (Dimitri, Piga& Spagnolo 2006, pg. 113). Since Whilst Stone Wool Pty Ltd is interested in having the best and affordable transportation and organization services, it should select a company that will enhance the development of good business partnerships to avoid inconveniences in the manufacturing process.
Balachandran, S. (2004).Customer-driven services management (2nd ed.). New Delhi: Response Books ;.
Bloomberg, D. J., LeMay, S. A., & Hanna, J. B. (2002). Logistics. Upper Saddle River, N.J.: Prentice Hall.
Bentrus, K. (2005) Application of the kraljic strategic sourcing model in the petroleum industry supply chain. New York: National Academies Press.
Biddle, G. C. (2008). Accounting Methods and Management Decisions: The Case of Procurement Cost and Inventory Policy. Journal of Accounting Research, 18, 235.
Booth, C. (2010). Strategic procurement organizing suppliers and supply chains for competitive advantage. London: Kogan Page.
Butter, F. d. (2007).Procurement. Amsterdam [etc.: Tinbergen Institute ;.
California, B. (2007). Summary statement of work: study of transportation control programs. Washington, D.C.?: National Commission on Air Quality.
Dertouzos, J. N., & Garber, S. (2008). Performance evaluation and Army recruiting. Santa Monica, CA: Rand Arroyo Center.
Dimitri, N., Piga, G., &Spagnolo, G. (2006).Handbook of procurement. Cambridge, UK: Cambridge University Press.
Dlantus, L. 2006) Good procurement practice (GPP).Canberra: Dept. of Finance and Administration.
Dunstrus, K., 2007. Integrity in public procurement good practice from A to Z.. Paris: OECD.
Hayes, S. R. (2009). Performance measures and standards for quality services. Research Triangle Park, NC: U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards.
KucÌŒan, M., &KraljicÌŒ, P. (2001).Competitiveness of companies in Central and Eastern Europe.Bled: IEDC - Bled School of Management.
Margulis, H. J., &Yoshpe, H. B. (2009).Procurement. Washington: Dept. of Defense, Industrial College of the Armed Forces.
Piga, G. (2009). The applied law and economics of public procurement. North Ryde, N.S.W.: National Bureau of Economic Research.
Peagus, J. (2008).Procurement of goods or works Standard Bid Evaluation Form. Washington, D.C.: Procurement Policy and Coordination Unit, Operations Policy Dept., World Bank.
Schuh, C. (2012). The purchasing chessboard 64 methods to reduce costs and increase value with suppliers (2nd ed.). New York, NY: Springer-Verlag New York.
Wuhnis, P. (2010). Supply Chain Management Best Practices. (2010). New York: National Bureau of Economic Research.
Younis, K., Turner, C., &Tiwari, A. (2013). Inventory reduction and management: a partner selection and inventory reduction study. International Journal of Integrated Supply Management, 8(4), 210.