Purchasing Management (Supply Chain Management 3A)
READ THIS CASE STUDY AND MAKE USE OF THE LINK PROVIDED IN ORDER TO ANSWER THESE 2 QUESTIONS
Materials management includes the job of purchasing. In any industry, purchase refers to the acquisition of necessary equipment, materials, tools, and parts. The relevance of the buying function varies depending on the industry and its size. This duty is performed by the works manager in small businesses, and by a distinct department in major manufacturing
companies. As soon as a purchaser places an order he/she commits a substantial portion of the finance of the corporation which affects the working capital and cash flow position. He/she is a highly responsible individual who interacts with many salespeople and can thus be deemed to have contributed to the company's public relations efforts.
You are managing the purchasing department at Walmart's Cambridge Foods in South Africa. Critically discuss the following topics and explain how your team would help Walmart's Cambridge Foods to satisfy its stakeholders.
Walmart's Cambridge Foods expects purchased potatoes to be transported from the grower to its customers. In view of this expectation, critically discuss the salient factors that Walmart's Cambridge Foods has to consider when selecting the relevant transportation services. Discuss how Walmart's Cambridge Foods will determine which supplier is capable of meeting its needs in the short and long term, both strategically and operationally. To illustrate your answer, utilize relevant examples.