Running Head: STRM046 Managing Operations and the Supply Chain
STRM046 Managing Operations and the Supply Chain
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This report aims to on how lean management principles, tools, concepts or frameworks can be adopted to improve warehousing and procurement process in supply chain management (SCM). The report begins with a review of literature about role of procurement and warehousing SCM, followed by a discussion of Just-in-Time framework of Lean management. The report then continues to highlight specific issues in warehousing and procurement and how JIT can be used to tackle those issues. The report ends with a comprehensive conclusion.
The Role and Activities of Procurement in Supply Chain Management
Today companies seek to increase the purchase of parts, materials and components, in order to concentrate on their own areas of expertise and competence. This further increases the importance of relations between the purchasing department, suppliers, and the quality of the components that are being purchased. Purchasing management have a major impact on the quality of products and services manufactured and offered by companies. Therefore, discussion below shows the functions and objectives of this department and its impact on the supply chain (Monczka, et al., 2015).
The procurement is a very important role in the management of materials and / or raw materials, although it varies with the nature and size of the company. The purchasing department should be handled as a strategic source within the supply chain and not as a mere place to combat costs. On the other hand, independent -e size-at the time a buyer makes an order, committed a substantial portion of the financing company, as it affects the working capital and cash flow position. In addition, a purchasing department can improve or spoil the image of the company for its excellent or poor relationships...