Essays on REVISION NEEDED: PURCHASING AND SUPPLY MANAGEMENT Assignment

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Executive SummaryThis writing is a procurement plan that is an aspect of business enterprise which ensures buying of the right products and at the right price. The study defines the procurement requirements of incorporating the new taxi services in the operations of Transperth within Perth metro regions for the timeframe schedule running from April 2013 to April 2014. Transperth is government initiated business venture under the Department of Transport that provides public transport services in the Perth Metropolitan regions by buses, ferries and trains. The product range and market positioning of the Transperth operations run from the Perth CBD to Thornlie via Armadale, to Midland, Fremantle, Mandurah and Clarkson.

Transperth runs the bus services contracted companies under the Public Transport Authority (PTA). Transperth has complementary transport services with technological facilities like TravelEasy that sends customers email notifications for convenience and as a competitive advantage tool. It also offers special services like the Circle-Route which is a cross suburban route linking various social amenities. Taxi services are the new services that have shown viable target market opportunities in the Perth metro areas.

The services fall under the Small Charter Vehicle Licencing (SCV) category that defines the taxi licensing and pricing in the Perth Metropolitan area. The target market covers the discrete segments of customers that are no longer using the buses and trains for transport but lack personal cars, or prefer using hired cars, and the tourism sector. Regarding a supply chain and competitive advantage of the taxi service, inventory management team is in place to oversee quantity and location. Cash-flow arrangements glued to technological applications will enable efficient payment terms and methodologies within the supply chain between the supplier and Transperth, and Transperth and the customers, thus winning in the market.

The demand forecasting is based on the March 2012 news report by the Taxis Council of Western Australia, and standing at 150 cars in the first financial year of operation with the demand varying across the year. The procurement plan provides information that regards the purchase of motor vehicles towards the implementation of the new services. The selection process will involve assessment of the suitability and ability stand of the potential suppliers.

The specific cars to be procured are the TOYOTA IST and MERCEDES BENZ E-Class that comply with the Euro emission standards. Vendor selection will use RFI, RFP and RFQ procedures. The estimated procurement cost is $815,450 with the Bill of Materials including 150 cars that have a speed limit of 40 MPG. 1.0. IntroductionProcurement of products and services for accompany from external suppliers is a fundamental issue in any business venture. It is through this aspect of business enterprise that the company management ensures buying of the right products and at the right price for their company, mainly through an allocated department – Procurement. This study entails procurement plan for a new product in a company.

The study uses Transperth Company of the Western Australia for analysis of the topic. Transperth is the name of a public transport company that provides services in Perth metropolitan region. The company is under the management of public transport authority of the Australian State Government. Transperth offers transport services by train, bus and ferry, which are currently covering the Perth metropolitan area.

The market coverage for the company thus includes Perth City, and the four areas making up the metropolitan i. e. Wundowie in the east, Fremantle in the west, Mandurah in the south and Two Rocks in the north. These suburbs determine pricing of the services from the city centre to a particular destination (Transperth, 2012).

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