The Most Suitable Purchase Process Models - Coursework Example

Global Procurement: Introduction: Modern business practices are driven by consideration of precision and care. In such situation the processes become very important and for this purpose, process models are examined and created in order to evaluate the overall situation and create a product or service that fully complies with the customers’ requirements. Purchase model is one of the specifications of the entire process and thereby needs proper attention. Various components make up for the purchase process model. The paper looks into various parts of it and those that may be missed out and may result in overall short comings in the final product. Global procurement: The aforementioned concept entails usage of expertise in the field of logistics and expenditure related factors. The purchase in general includes the raw material that would be needed, the kind of expertise that would be needed to be acquired, the capital and budget allocation (Monczka, et al., 2010,205). All these can be evaluated and estimated in advance in form of process purchase model. General steps of purchase process include the invoice, bidding, solicitation of bids, and purchase at hand (Howes & Robinson, 2005). The paper further looks into most suitable purchase process models, along with number of organizations and their activities as to how they go about the process purchase models. List of successful organizations has been presented in the paper which explain how they have integrated and adopted the process models, what elements have been included and what other have been excluded. Purchase Model: The model depicted in the figure has eight basic elements starting with internal customers, and ending with the suppliers who provide the end product or service. The overall process model can be divided into two phases, with first four elements making up for the first phase, while the second part consisting of latter phase. The first phase is preparatory and inside the laboratory phase, while the latter is pertinent to post delivery, evaluation and assessment in response to the product or service offered. The intermediate steps include specification evaluation, choosing the suppliers for respective process, formulating the contract procedures. Follow up, supplier dealings make up for the final part of the entire process (Havey, 2009). Short comings in the given purchase process model: While the model provides description of the two phases of overall activity, it fails to cover up number of sections which are important and should be part of the overall homework plan for the purchase process model. These activities include the following: Scheduling of processes and activities: Inventory consideration and adjustment: Quality control factor: Inspection process: Generalized Planning: The first short coming is in form of scheduling. Scheduling enables knowing what to do and when to do. Scheduling enables synchronous functions to take place and also allowing prevention from congestion and saturation of activities. Scheduling also enables prioritizing which is an important function of overall business activity and purchase process model. An interrelated entity and factor is that of inventory. Inventory should be kept minimum and it should be part of the overall consideration plan for a given process. Without the consideration of inventory, resources might end up being consumed unnecessarily and would result in failure to perform activities in due manner. Large amount of inventory is always a sign of weakness and poor performance, therefore no purchase process can be thought of as an effective one without the consideration of inventory. Quality control factor is another element missing in the model. Quality control consideration has become more important in recent times, with ever fast competitive environment between various organizations and their products and services, the importance of quality control cannot be undermined. Quality control has double advantage; it enables identification of elements in advance and as a result enables prevention of the time that would be lost in the corrective processes. Hence a model without a quality control element will be termed as a flawed model and thereby would not augur to the desired expectations (Tyagi & Kumar, 2004). Generalized planning: The element of planning is missing in the above model. Planning is of high importance in any business activity in general and of more importance in process model in particular. It is being said that failing to plain is planning to fail. No clear planning element or segment can be seen in the model presented in the figure. Planning is in directly associated with the synchronization of the processes. Hence both are inter related and missing on one would result in missing of other, and other way around, preparing a plan would facilitate the synchronization between the two and the ultimate benefit would be that in form of effective process purchase model(Weele, 2009). Inspection is also an integral part of modern applications and services industry, while in past the work of inspection was dedicated and confined to quality inspectors, in modern day it is the individuals and each department that performs the scrutiny. Without inspection being imbedded in each of the process, the activities cannot go on in a required manner. Hence the above given diagram suffers from short coming in form of lack of inspection domain as well. Other discrepancy: The diagram shown shows that the elements are deeply intertwined and absence of one might result in failure of overall process, this may not be true and at times, one or two of the elements may be omitted if need be and in more generic conditions four out of the six specified functions may help performing the task to the required level. With modern day applications and businesses being operated on the medium of web, the catalogue option can be modified, and as shown in the diagram, it may not be strictly followed and despite that, the outcome can be achieved to the desired and expected level. Online catalogue option is another facility that can be incorporated in modern times in business processes and purchase models. Purchase process and purchase process model: Purchase process is an important part of overall organizational activity and it pertains to the selling, buying and other dealings relevant to the specialized products or services in which the respective company deals. Purchase process models are in practices which provide guidelines and directions for following a particular path which would enable performing the right action at the right time and hence help the overall process and yield. The model in place enables identification of various components which need to taken into account so as to ensure a successful output at the end of entire process. Different companies and different models provide generic structured purchase process models, however aim of each of them is the same and each ensures fulfillment of the basic elements which would deliver the best output in a given situation. Basic functions and pre requisites of the purchase process model include steps the following steps: Problem recognition: This is the first step. It applies to different disciplines and domains of management and not just the purchase processes. In general context, it is being said that the identification of problem is the half resolution of the problem. Hence knowing what the problem is, allows further steps to be adopted and path and action strategy to be devised. Collection of information: The second step is that of gathering of information. Information relevant to the overall process, which may include information about the types of processes involved, the type of resources to be activated, previous patterns adopted in past and the technical as well as non technical information related to the process is being gathered in this phase. Consideration of possible alternatives: Substitute paths in form of Plan B, and Plan C should always be kept in store. The importance of alternatives can come in handy in case the first initiated plan does not work. Alternative plans enable working on second and third tier and does not hinder the activities in case of any glitch or short coming in the first taken up plan. Decision based on evaluation and options availability: Once the entire homework is done in form of resources availability, the information gathered alternatives evaluation, and finally the execution steps in practicality. This action may be either the pilot test or launching of the product or service in the market. Most often it is advised and followed that the pilot tests are conducted in order to evaluate and gauge whether the first three steps have been followed in the due manner, and also if there is any short coming in any of these steps, the pilot test enables saving and repairing the defected part and component of particular process or product that is to be launched. Post purchase activity: This is the after service phase, which comes as a feedback or self assessment. Often this phase is ignored or less seriously taken, but this phase is of immense importance and sets precedence for the future outlook of the organization, product or service. Since there is always margin for improvement and changes can occur, also, the customers feedback often demands changes in the processes, and activities relevant to the product or service being provided, thereby post purchase activity should be taken seriously and should be given due time because it is this step that allows the future outlook and success or failure of the organization and its services/ products. I.B.M and Purchase process model: I.B.M has an integrated purchase process model that incorporates functions like business process management (B.P.M) and business process definition (B.P.D), both the basic elements of a successful purchase process model. It further includes familiarizing the users to the usage of standardized processes. The IBM BPM (Business Process Manager) is part of it and contains sufficient information about model and its basic elements. This model helps not only the users, developers but the stakeholders as well (World, 1997). Lenovo and Colgate: These two have adopted and implemented the business process and purchase model to good effect. Colgate has a collaborative policy in this regard ensuring effective logistics and raw material handling with due consideration of the global procurement processes(Berger, 2011,7). Conclusion: Process purchasing model provides us with large number of benefits. It provides us details about the costs, the resources, the facilities available, the human resource available, along with the potential strengths and weakness of the organization enabling them to take the right decisions at right time. it allows focusing on the skilled elements in the organization. With functions like quality control, planning, audit, synchronous functions and various other elements, it sets the company on right footings for the activity undertaken (Scheer, 2000). References: Berger, A., 2011. A Strategic Analysis of Colgate ́s Toothpaste Product Line: Marketing Strategy, s.l.: GRIN Verlag. Havey, M., 2009. Essential Business Process Modeling. s.l.:OReilly Media, Inc. Howes, R. & Robinson, H., 2005. Infrastructure for the Built Environment: Global Procurement Strategies. s.l.:Routledge. Monczka, R. M. b., Patterson, J. L. & Handfield, R. B., 2010. Purchasing and Supply Chain Manag. s.l.:Cengage Learning EMEA. Scheer, A. W., 2000. Aris: Business Process Modeling. 3rd ed. s.l.:Springer. Tyagi, C. L. & Kumar, A., 2004. Consumer Behaviour. s.l.:Atlantic Publishers & Dist. Weele, A. J. v., 2009. Purchasing & Supply Chain Management: Analysis, Strategy, Planning and Practice. s.l.:Cengage Learning EMEA. World, I., 1997. InfoWorld, s.l.: InfoWorld Media Group, Inc.. 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