Contents
Part A...............................................................................................................................................1
Question _1......................................................................................................................................1
Medium and Long Terms Business.............................................................................................1
Question-2........................................................................................................................................2
Part-B...............................................................................................................................................4
Question-1........................................................................................................................................4
Question- 2.......................................................................................................................................5
Question-3........................................................................................................................................7
Question .3. B..................................................................................................................................7
References........................................................................................................................................9
Part A
Question _1
Tactical procurement plans are typically created by senior executives within the company, but
may not be created by the company's procurement department. If you need to create a critical
corporate plan, you usually need a tactical procurement plan. Tactical procurement planning has
become increasingly difficult, and many procurement departments work in procurement
departments.
In the event of a tactical procurement emergency or emergency alert, you are more likely to
resolve your tactical procurement strategy.
Medium and Long Terms Business
Consider a medium-sized production company with a purchasing employer who has the
activity and ability to leverage almost all courier companies.These buyers or buyers do not have
a buyer / buyer technology platform or key advanced skills from tactical to strategic sourcing.
First, strategy is the right way for these companies and companies to "do the right thing." For
medium-sized or manufacturing companies, the purchasing department can use almost any
supplier-based supplier. Purchasing department of another organization or institution.
When an organization purchases a product, they choose from a pool of small operators
surveyed, and then select a particular supplier that depends entirely on the company's
expectations and the potential to meet their needs. Organizations can design hybrid methods
using low-cost enterprise resource conversion technology and a small product expert
organization. This can be discovered by assessing tactics and strategic procurement..
Question-2
The coronavirus crisis has brought unexpected changes and vulnerabilities to modern supply
chains. In most countries, home-based people and multinationals suffer from supply and demand
because the global economy has a faster impact on multinationals than expected. Consumers buy
only basic products and foods, which has a significant impact on supply chain processes. There
seems to be a difficult problem, such as the time it takes to settle the invoice. In 2019, the
business area will take 36.7 days to settle invoices and in 2018 it will take 36.8 days. At the
beginning of 2020, it will take 37.4 days to complete the payment terms. The slowdown in new
orders impacts supply chain flow and prevents further billing..
Based on the principles of lean manufacturing, countries around the world are experiencing
supply chain loopholes.Blocking effects in key manufacturing areas cause supply chain
problems, as manufacturers must work hard to rotate their supplier base. Therefore, in the future,
multinationals may expand their supply chains rather than calculate based on a particular
country. Converting paper relationships to digital is a fundamental and important factor in
building a well-structured supply chain, as it saves a lot of time and effort. Establishing an
intelligent supply chain is a weapon to protect future supply chain crises and establish global
trade .If the supply chain process is interrupted, problems will occur in the import, export, and
manufacturing processes. India is the world's largest supplier of non-prescription and group
drugs, so there is a global shortage of drugs..Another challenge is purchasing at the purchasing
organization.
During the pandemic, product shortages and demand affected distribution rates.At the same time,
the distribution department faces the challenges of direct distribution, accurate and timely
distribution, and warehouse staffing.Unusual peak demand causes significant fluctuations in the
supply chain.Economic recovery after COVID-19 is a global responsibility, and achieving this
goal must be a global cooperation. Purchasing plays an important role in implementing a
recovery plan. Digitization helps purchasing managers speed up post-pandemic recovery and
take into account short-term and long-term restructuring of the organization..
Part-B
Question-1
For SME and SME, the public procurement process is bureaucratic, institutionalized, legally
complex, difficult and competitive. Today, procurement can facilitate domestic and international
outsourcing and bring more opportunities and development to the country's economy. In some
countries, such as Australia, investment in public infrastructure plays an important role in public
procurement. Long-term contracts, two-stage bidding, one-time sourcing, and the use of
electronic sourcing are the best sourcing practices to reduce costs and deliver better and more
effective results to public sourcing. Public procurement is an important factor influencing the
country's economic development. Implementing public procurement strategies can also promote
employment opportunities, corporate-level growth, social inclusion and innovation, and
improved health care and education..
Question- 2.
The public sector of procurement is unlike private sector procurement. It focuses on
accountability and transparency and it emphasizes legislation, process and policy.it serves
directly or indirectly on opportunity structure to suppliers. The highly institutionalized market
with high standardization limited SMEs to enter into the market they have limited resources. Due
to the nature of the current market, objectives are less important than value of money. Currently,
single-sourcing, two-stages tendering, long-term contract and e-procurement are the best way to
save cost. For cost reduction, group taking and packing of the contract is the best way. E-
procurement is very effective to deal with a large supplier pool by public procurers. However, e-
procurement is out of reach for small firms as it includes the awareness and ability of being
familiar with online tendering platforms. These procurement practices are the major obstacle for
SMEs’ involvement in public sector contracts. As they do not have sufficient capacity of supply
to bid for the requirement of public procurement. Due to the limited information and resources
availability, SMEs business are more successful below than in above- threshold procurement.
Thus, the participation of larger companies in tender submission is more than SME and other
under-represented businesses. This also brings significantly larger gap between small and
medium enterprises, medium and large enterprises. The larger the contract, the less opportunity
for small firms to win. Furthermore, there are other factors such as type of contract, sectors of
goods and service, type of procurers, the tender chosen and market aggregation influencing
SMEs and under-represented firms to enter public procurement. These institutionalized markets
are shaped with long-term single sourcing, strict rules and aggregate demand. These limitations
make it challenging to small firms to enter. These markets are shaped with monopoly suppliers
which can allow the smaller suppliers with the possibility of sub-contracting.
However, the strategic choice and product market knowledge of owner-manager enable them to
enter the public sector market. Sufficient knowledge of what and how the public sector takes and
sources is a major break-in point of SMEs to win the opportunity to work with large
organizations. Thus, prior ability of the public sector retail and how they operate, how to deliver
the requirement of clients are the key factors for SMEs and other under-represented business
firms to win the public sector contracts.
The willingness of the owner and passion of the manager shape most of these factors. Small
firms mostly benefit from their network to enter the public sector market. Relating to the extent
of their network to external relations for accessing the market, small firms have the opportunity
to win in public as well as private sectors. The knowledge of the product of the owner is also a
strategic resource which plays a vital role in winning the chance to access the public sector
market. The perception of business owners and managers and their willingness to take risks
shape the opportunity to enter the public sector market too. Capable management, skilled staff
and buyer’s requirements are also important parts to access public sectors. This is why, having
courage to take risk, having positive attitude towards taking risks, the resources (time, money,
effort), strategic choice, having adequate knowledge of product market ,procurement knowledge
(including the ability to write effective tendering bids) and strong network connection to external
firms are essential and key points to enter the public sector market.
Question-3
If I were a small owner, I would take the risk of entering to public procurement opportunity.
Especially during post COVID- period, most business are relying on technology and reducing
man power. Being familiar with technology can handicap in this time of crisis. To be able to bid
the contract or tender, small business owner needs to have expert knowledge on procurement
process with strategic approach. The perception of risk taking, confidence to take the risk is the
ability of the owner. Knowing the vigorous competition, the owner must confident enough to
compete in the market. Awareness on the prior knowledge of the market and resources such as
time, money and effort are essential to enter the public procurement. During post COVID-19
period, investors of local firms are willing to hire outsourcing in procurement sectors to reduce
the human resource of their firm. Foreign investors can’t also do procurement without the
knowledge of local procurement sectors. Besides, many emigrants are coming back to our
country due to the corona crisis. This is also an opportunity to hire outsourced people. Some
organizations hire local procurement specialists as an outsourcing expert. This can be an
opportunity for small firm owners. At this point, broadening the network of own business
regardless of the size of the firm is a key factor. If the owner of the firm is broad-minded and has
strategic network, it will be an upper-hand to win the contract. However, it is very competitive
market and has little chance to win if the other competitors have equal or almost same quality. At
any rate, staying in comfort zone can’t make the business develop. Thus, grabbing the golden
opportunity to compete whether win or not can bring experience to learn for future growth.
Having positive attitude and willingness to take the chance can bridge to win the contract to enter
public procurement.
Question .3. B.
To benchmark your procurement as best practices policy, organizations have to follow some
important factors. Proper Alignment and staffing are one of the important factors to embed the
effective supply chain management. For some business, centralized operation is more effective.
Adopting hybrid approach of centralized approach combined with decentralized approach to get
consensus can have significant improvement. Placing contract management, forecasting
planning, procurement and other related management under the leader of supply chain although
it can’t be fit with all organization, it can at least give clear structure of reporting. However, no
matter what structure was adopted, correct staffing of the supply chain is very important. The
knowledge of supply chain of staff is a vital role. Thus, most effective organization hire strong
supply chain managers who have excellent strategic thinking, strong relationship and
communication skills with management.
Using technology will make workflows and processes more efficient and effective. It also saves
time and energy of man power. It is very important of using technology in order to to keep
abreast with current digital world. The skill of manager to extract and view the data with expert
knowledge of technology is an upper hand to benchmark the organization. Procurement
automation is an effective way to save money and time as well as to reduce unnecessary
repetition of process. Such digital transformation can make your procurement more efficient.
One of the main advantages of strategic sourcing is focusing on total cost of ownership not only
on price. Currently, effective organizations give up the idea of receiving several bids and
selecting a supplier on price. Another important factor is putting contracts under the function of
supply chain to avoid the failure of communication and monitoring the contract compliance.
It is important to follow the appropriate policies and procedure in supply chains management in
order to avoid the future possible risks. Risk mitigation decision should be integrated in supply
chain organization.
Overall, Best-in-town organization can make supplier engagement smooth by collaborating
partnering with vendors. This make win-win situation with vendors and build more trust.
References
Vinay Sharma , April 15, 2020. COVID-19 Challenges and Response: How procurement
underpins the World Bank’s response to the pandemic https://blogs.worldbank.org/voices/covid-
19-challenges-and-response-how-procurement-underpins-world-banks-response-pandemic
https://www.researchgate.net/publication/227651958_Short-Term_E-
Procurement_Strategies_Versus_Long-Term_Contracts/citation/download
https://www.slideshare.net/DrGordonMurray/penny-wise-procurement-
strategieslongtermeffectivenessshorttermwins-10121
https://www.weforum.org/agenda/2020/05/this-is -supply-chains-will-look-like-after-covid-19/
https://www.supplychainquarterly.com/articles/475-10-you-should-be-doing-now
