PROCUREMENT AND INVENTORY MANAGEMENT

Procurement and Inventory Management

Procurement and Inventory Management

Procurement Question 1: Categories Of Supply: Group The Sourced Components In Appropriate Categories And Describe The Impact Of Their Characteristics To The Design Of Specific Processes.

This section of paper will discuss the supply chain component and appropriate categories in Nordic Phone Company. The section will also discuss the comprehensive and significant impact of their characteristics. The categories of supply will make the procurement process effective and efficient, as one of the purposes of supply chain is to make the procurement process better. There are around three different components of supply chain these are as follows

VMI: Vendor Managed Inventory describes the circuit between the customer and Manufacturer

SMI: Supplier Managed Inventory describes the circuit between the manufacturer and supplier.

CPFR: Collaborative Planning, Forecasting and Replenishment describe the Cooperation in the areas of planning, forecasting and Production area of several companies along the supply chain. Replenishment means something like the replacement of used goods

In recent years, Nordic Phone Company is focused on the joint win-win oriented Optimizing the Supply Chain. The term of the Collaborative Supply Chain Management (CSCM) is to optimize the entire supply chain by Community data exchange and collaborative initiated by Coordination processes between the partners understood. In the SCM context, this collaborative cooperation that two or more supply chain partners jointly coordinated action. The goal of Nordic Phone Company is to form a common base of information; from this coordinated plans derive, in order to eventually develop existing success potentials. CSCM focuses on the interfaces of supply chain partners and attempts to been marked by a lack of transparency and lack of coordination to synchronize planning and control. Important here are the VMI as well as SMI-circuits, which process data from the transport of goods and organize and conduct (Lee, 2000, p.47-54)

Benefits of Supply Chain Management in Nordic Phone Company

SCM aims to be at particular realization of the following points: Comprehensive overview of the availability of stocks Lower stock levels Increased security in the procurement decision Reduction of administrative burden (Emmett, 2009, p. 1-11)

This is achieved by reduction of intermediate storage facilities, consolidation of planning and realized exchange of production data. Since all partners have same knowledge along the logistic chain, safety stock can be reduced. Production time can be shortened considerably, since even the raw material supplier, the situation of the camp at the end point of Sale, as well as the manufacturer knows and supplies were controlled in time (Hoover, 2001, p. 178-194).

Now the paper will discuss the components of supply chain in Nordic Phone Company

VMI Vendor Managed Inventory

Vendor Managed Inventory (VMI) and vendor-controlled stock or Supplier Managed Inventory (SMI), is a logistical means to improve performance in the supply chain where the supplier has access to the inventory and demand data of the customer. The Nordic Phone company has appropriate opportunity to apply the VMI and it has been advantaged from this system. Nordic Phone Company has seen a rapid reaction of suppliers to fluctuations in ...