Barclays Bank in the UK - Current Procedures - Case Study Example

Title: Resource report Student name: Student ID number: Date submitted: Executive summary Barclays bank is the second largest bank in United Kingdom. This organization uses different types of resources. These include cleaning materials, payroll and computers. Analysis of Barclays bank shows that the organization obtains computers through tendering process. The management team carries out an internal analysis to show the number of needed computers. An advertisement is then made through newspapers for suppliers to take the offer. (Miller, 2009) An analysis is then done concerning quality of computers that various suppliers have. After choosing a supplier, negotiations are made and goods are delivered. Payments are then made. There are other options that this bank can use to obtain resources. This can be done through outsourcing a company to oversee the entire procurement process or simply making a purchase from known suppliers. Bidding or tendering process is also another option. (Miller, 2009) Company Background Barclays bank is one of the known banking institutions in the global markets. It is ranked twenty fifth among large Companies all over the world. It is also ranked second among best banks in United Kingdom. This bank has branches in Asia, Africa, North America, Australia, Latin America and the Middle East. It’s share price however declined by May 10, 2009. (Miller, 2009) This was due to diminished investor confidence in the financial institution. This organization uses different types of resources. They include computers, payroll and cleaning materials etc. This paper therefore evaluates ways through which the bank obtains computers and the available options of sourcing these resources. Finally, recommendations are made on the best way Barclays bank can obtain computers. (Miller, 2009) Current procedures Resources like computers are very essential in an organization. This is especially in organizations that offer financial services like banks. Analysis of Barclays bank shows that majority of its processes require computers. This is in relation to storing of customers’ data, retrieving and even disseminating of information. (Mentzer, 2003) Research in this Company shows that the organization acquires computers through a tendering processes. This is in accordance to the policy within Barclays bank. The management in the Company usually carries out an internal research concerning the number of computers that are required within the period. This entire process incorporates departmental heads since they are usually well versed with various departmental needs. (Miller, 2009) In this case, each departmental head submits a report concerning the number of computers needed in his departmental. All the reports are then evaluated by the procurement department managers. Departmental managers’ proposals can be implemented or reviewed upwards or downwards. (Miller, 2009) After this, Barclays make makes the information public that computers are needed. In this case, various organizations are required to apply for the tender to supply the organization with computers. Barclays bank usually makes clear the number of computers that are needed. (Mentzer, 2003) This also includes the quality, memory and other specifications. Interested supply Companies are then required to apply to the organization requesting to supply needed Computers. The next process involves choosing the Company that will take the tender. There are times when Barclays bank sources an external organization to be in charge of the entire process. (Miller, 2009) This enables the whole tendering process to be based on equal opportunity without favor or discrimination to any of the Companies. At this stage, each of the Companies is required to prove itself worthy of being given the tender. This means that their products are normally of the best quality. This may involve getting some information from other institutions which have been supplied before with computers. (Mentzer, 2003) There is however measures that are put in place to ensure that the chosen Company supplies high quality computers and of required specifications. Once a Company is chosen, it has to supply the required number of computers within the set time frame. This process basically illustrates the way Barclays bank sources its computers. (Miller, 2009) Literature/ best practice There are various aspects of best practice that need to be incorporated when sourcing for computers in Barclays bank. The first step definitely requires that some internal research within the Company is carried out. (Miller, 2009) This is to ascertain the number of computers that are required for each department like the back office, reception etc. Sometimes this process can actually be skipped if the organization has been ordering for specific number of computers for within a certain period. (Mentzer, 2003) If another office within the organization is being added, then records can help in knowing how many computers are required as relates to those that were initially ordered. This means that the reason as to why computers as a resource are required within the organization needs to be evaluated too. Even before Barclays bank makes it public that suppliers are needed to take a tender in supplying computers, it is very important to gather some information. This is in relation to the best suppliers of computers in the market. This is more so if the organization has not established a relationship with some known suppliers in the market. This information can be obtained from customers, employees and even competitors. (Mentzer, 2003) The next stage involves making public the requests for tenders. In this case, the organization has to choose medium that will be easily accessed by targeted suppliers. In most cases, advertisements are made through newspapers. This is because they are able to relay all the information clearly and suppliers can even keep them for future reference. It is also important for Barclays bank to make direct contact with suppliers at this stage. This is because through interactions the organization can know more about suppliers and other products that they deal with. The next stage involves consulting different references for products and services. In the case of computers, issues of installation, warranty and maintenance among suppliers should be compared. (Mentzer, 2003) Samples of computers can be examined at this stage and tried to see their speed etc. After this, the supplier is chosen based on the prior analysis about products and services. The two parties then negotiate on delivery schedules, prices and availability of the resources. At this stage, the two parties can negotiate on the possibility of customizing the computers to suit the processes in Barclays bank. It is quite important to note that sometimes two suppliers can be chosen for the same product. This helps in minimizing risks of having poor quality products. Supplier then delivers goods to the organization. Sometimes payment may be made before the goods are supplied. (Mentzer, 2003) Application of literature to practice There are various sourcing options that Barclays bank can use in acquiring computers. Computers in Barclays bank can be acquired through outsourcing. This is where Barclays bank managers identify an organization that will be in charge of the whole process of acquiring the resources. (Mentzer, 2003) In this case, the chosen organization looks for best suppliers in the market. It analyses the quality of goods in the organization. This also includes an overall analysis of prices as compared to other supplier. The subcontracted Company negotiates with the supplier in terms of delivery schedule and best price that can be charged. (Mentzer, 2003) This option of acquiring resources or computers in this case is quite advantageous. This is because it gives managers in the bank the time to handle other essential issues in the organization. This is also a chance to get professional service from subcontracting Company. It is a stress free way of acquiring resources within an organization. It is less consuming in times of time. (Mentzer, 2003) Another option that can be used to acquire resources in an organization is by simply carrying out the purchasing process. This is whereby the organization has established relationships with various suppliers in the market. First of all an analysis is simply carried out within the organization to find out the number or resources or computers needed. The procurement department manager can then contact known suppliers of computers in the market. (Mentzer, 2003) Procurement manager then gets quotations from various suppliers. These quotations show the products that the suppliers deal with. Quotations usually have prices of various products offered. This enables procurement manager among other stakeholders in the organization to compare and contrast prices. A procurement department in organization can also be issued with a price list from each of the suppliers. (Mentzer, 2003) This is normally more comprehensive in terms of products prices. Suppliers can also issue a catalogue that shows various computer brands, their photos and sizes. A catalogue shows specifications of each computer in terms of the capacity of the memory. This will enable manager of procurement department to make the best choices. (Mentzer, 2003) Next a purchase order is made to the chosen supplier. The supplier then sends an invoice that shows the delivered goods. Supplier then sends a goods received note and payments are made. This also enables organizations to acquire resources easily. Tendering or bidding process can also be used. In the tendering process, the organization advertises for suppliers to take up tenders of particular products. In tendering or bidding process, suppliers apply for taking up the tender and later on evaluations are made. This process allows the organization to evaluate a variety of suppliers in the market and therefore it is able to get quality resources at the best market price. (Mentzer, 2003) Recommendations Analysis of Barclays bank shows that it only uses one channel to acquire computers. It is very important that this organization explores other ways through which it can get computers for organizational use. Outsourcing; Barclays bank can get external experts to subcontract the entire job of ensuring that the organization gets computers. This will enable the management in the organization to concentrate on areas that need much of their attention. This time can also be used in planning, marketing, monitoring and evaluation among other tasks. (Mentzer, 2003) Barclays bank’s procurement manager can simply contact known suppliers in the market. Suppliers can then issue quotations, pricelists and catalogues to be checked by the procurement manager. After choosing brands of required computers negotiations are carried out. Goods are then delivered and payments made. (Mentzer, 2003) The tendering process in Barclays bank needs to be carried out with great care. This is more so in analysis of suppliers before choosing a specific one to supply computers. (Mentzer, 2003) Conclusion In conclusion, procurement process is important in any organization. Barclays bank usually uses tendering process to acquire computers. It should however try out other means like outsourcing which would enable the management team to have more time to handle other essential issues in the organization. Read More