Improvement of Danones Purchasing and Supply Management - Assignment Example

Secondly, Danone has a major weakness in availing products to consumers at the right time. This is because of the lack of efficient distribution mechanisms. This has triggered the firms to formulate distribution channels such as door-to-door, but Danone has not achieved maximum efficiency where consumers can receive goods instantly. Danone has an objective of ensuring that products reach the consumer in the best possible conditions and at the best price (Danone Par 1). Therefore, Danone may have to adopt collaborative distribution both at the urban and rural levels in order to further develop and improve its purchasing and supply management.

This means that Danone will have to partner with other organizations to aid in the process of order delivery. With this, the company will be able to facilitate home delivery and pick-up efficiently in rural and urban areas (Capgemin 46).  Danone will have to adopt Radio-Frequency Identification (RFID), in future to  monitor goods from the point of supply to the final consumer. This technology is expected to reduce the delay of goods from production to consumption points. It will also enable Danone’s managers to identify the points where goods are required, and determine the length of time that it will take the goods to reach clients.

With the aid of an electronic chip which will be attached to goods immediately, they are acquired from the supplier; information will be sent to the company about the state and location of goods (Scott, Lundgren and Thompson 95). Consequently, this will reduce delays in goods delivery. This is because managers will be able to monitor the location of goods, and they may fasten the distribution process when demand is high.Danone can also manage the relationships between buyers and sellers to improve its purchase and supply management.

This will involve the strengthening of relationships between these parties. The relationships would be strengthened by holding conferences through the information system (Scott, Lundgren and Thompson 97). Buyers would understand the processes at the supplier’s point, and this understanding would create long-term relationships with sellers. Consequently, the long-term relationships would guarantee the firm supply of all products, and this would reduce the shortage. In addition, Danone would have to adopt electronic distribution would reduce delay and increase customer satisfaction (Scott, Lundgren and Thompson 101).

This will improve the purchasing and supply management of the company by allowing customers to purchase goods on-line, and have the goods delivered to their door steps.