Business论文模板 – The ScaterBoys Business Simulation Activity Business Memo

Company analysis

               As observed in the various outlined repots on the performance of the ScaterBoys Organization, it is evident that the company is performing. Such is as a result of the enhanced coordination between departments where different employees from various departments works together toward the realization of the organizational goals. For example, the workers in the procurement department work together with the individuals from the sales department to understand the type of product that is highly demanded in the market. The procurement also works with the finance department to get the necessary financial resources to purchase the required products for sale. With a total of six different products in the market, it is also evident that the company’s choices of products are among the customers’ favorite as they are highly demanded. Initially, such is as a result of a good coordination between the marketing and the procurement department where the marketing manager informs the procurement manager on the most demanded products after successfully performing a market analysis on the target market. (Batenburg, 2006)

                 Over the financial year, the procurement department has resulted in purchasing more than any other type as they are more preferred by the customers. The second most purchased products are the Baker Skateboards, followed by Zero Skateboards, LIB Technologies Skateboards, and Dirty Butt Skateboards respectively. Technically, the analysis on the purchasing trend gives the management a simplified analysis of the market demands. Initially, it should take the procurement department a relatively one day to process a purchased order. Such is to enhance the efficiency and effectiveness of the company while at the same time promotes it reliability from the customers. However, the data provided relating to the company’s process of processing the purchased orders; it is evident that the company is taking an average of one day to process an order throughout the year. Such is achieved by dividing the total number of the product purchased with the total number of days in a year.

                  Currently, the procurement department is the most efficient when compared with other departments especially in terms of cutting costs. Initially, such is because the department has only one employee who reports directly to the managing director of the organization. On the other hand, there is also a smooth coordination between the sale people and the warehouse operators in the procurement department. Such is observed by the speed that a product is availed to the customer after placing an order. Additionally, such has led to the high customer retention rate by the organization as the majority of the served customers are relatively satisfied with the services offered; thus, keep coming back for the same product (Hunsaker, 2009).

                 A smooth coordination between the procurement and the production departments is also responsible for the excellent performance recorded by the organization. Initially, such is because the two departments have been jointly analyzing on what requires to be produced internally and what to procure from the company’s suppliers. Such coordination is responsible for the harmonized stock where the highly demanded products are purchased and produced in high numbers than when compared to lowly demanded products such as the Dirty Butt Skateboards. The procurement department has been also working closely with the major suppliers to ensure that only quality products are being supplied to reduce the number of products retuned by the customers due to malfunctions. Evidently, such close relationship is responsible for the high rate of positive feedbacks given by the majority of the customers being served by the organization (Dominick, 2015).

                 On the other hand, majority of the departments have recorded high retention rate. Such is especially the procurement department that has strived to retain its one employee for long. Initially, such reduce the high costs of employing new individuals that include position advertisement recruitment, and training costs. As the procurement manager, high retention rate enable the department to main the highly experienced employees, thus, enhancing a smooth running of all the procurement services. Initially, the procurement department has also been able to keep all the transaction records safe for future references. The procurement analysis records and procurement data enables other departments to analyze the organizational performance and at the same time projecting the future performance of the organization (Stank, 2014).

Recommendation

                  On the other hand, there exist various loopholes that the procurement department and the organization at large should amend to enhance the overall performance of the ScaterBoys Company. Technically, such is as a result of the need to increase the company’s profitability index, which is the primary aim of a business entity such as the ScaterBoys. Such areas of improvement include:-

  1. The company should consider increasing the number of employees in the procurement department. Such is as a result of employees’ deficiency in the section despite the department playing a significant role in the organization (Dimitri, 2006).
  2. The management should consider cutting down the overall number of employees. Such include reducing the number of individuals attached to various management departments and at the same time increasing the numbers of employees in both the sales and the procurement departments. Such will not only enhance the overall sales of the company products but will also decrease the total amount used for salaries, thus enhancing the overall profit (Baily, 2008).
  3. The management should assist the procurement department to enhance strategic sourcing processes. Good sourcing processes will ensure that company’s products are purchased on a timely manner hence reducing cases of deficiency gaps created by the failure of purchasing supplies on time (Bower, 2003).
  4. The organization should consider aligning strategic sourcing, category management, and supply relationship management. Initially, the three processes enhance efficiency in the procurement department thus promoting the overall performance of the company. However, aligning the three processes will ensure that the procurement department secures all the required products smoothly in a timely manner (Sollish, 2011).
  5. The company should digitize all the financial transactions to enhance both effectiveness and efficiency. In particular, such will reduce cases of defaulted payment terms. Technically, the procurement department requires automated system to ensure that supplies are paid on time and at the same time reduces cases of double payments. Such will enhance a good relationship with the suppliers in the long run (Stank, 2014).
  6. The management should introduce both the centralized and hybrid models of management in the organization. Such include introducing a central administration unit where all the employees will be reporting regardless of the department attached to in the organization. Initially, introduction of the two models will advocate for the introduction of information system technologies where employees data will be kept, thus enhancing efficiency (Baily, 2008).
  7. To enhance specialization, the organization should consider eliminating products that are lowly demanded and increasing the highly demanded products. Technically, such include encouraging the procurement department to purchase more stocks of Performance Sk8products that are highly demanded in the market and at the same eliminating Dirty Butt Skateboards and LIB Technologies Skateboards respectively (Batenburg, 2006).
  8. The top management should consider setting a long-term strategic plan to guide the future performance of the various departments. Initially, luck of a proper long term strategic plan increases conflicts and poor coordination among workers and departments as there are no common goals to be achieved. Formulation of the strategy will enable all the employees to strive toward the achievement of a common goal (Dominick, 2015).
  9. The procurement should also reduce the number of days from approval to receipt, and days to approve a purchase order. Technically, the high number of the days indicates that a customer cannot purchase a desired product immediately as desired. It also indicates that the procurement department must wait for a given number of days before securing a desired product from the supplier. Initially, the reduction on the total number of days will enhance efficiency as the company will focus on providing the customers with products needed immediately after enquiring (H, 2009).

                  Despite having a stable performance, implementation of the outlined recommendations will enhance the overall performance of the organization, both at the procurement department level and organizational level. The organization also requires improving the coordination of all the departments to enhance the overall performance.  The procurement department serves as the link between the suppliers and the organization, thus the need of improving its performance.

References

Baily, P. (2008) Procurement Principles and Management, London: Prentice Hall Financial Times.

Batenburg, R. (2006) ‘Alignment matters – Improving business functions using the Procurement Alignment Framework’, Utrecht University, pp. 17-24.

Booth, C. (2014) Amtrak management systemic problems require actions to improve efficiency, Toronto: Purdue Press.

Bower, D. (2003) Management of Procurement, Chicago: Thomas Telford.

Dimitri, N. (2006) Handbook of Procurement, Boston: Cambridge University Press.

Dominick, C. (2015) The Procurement Game Plan: Winning Strategies and Techniques, Chicago: Ross Publishing.

H, G. (2009) ‘‘Proposal of a strategy model planning aligned to the balances scorecard and the quality environments’, Total Quality Management, pp. 104-112.

Hundson, N. (2006) ‘Simple Strategic Planning’, Strategic Journals, pp. 23-27.

Hunsaker, K. (2009) ‘Ethics in public procurement: Buying public trust’’, Journal of Public Procurement, pp. 411-418.

HunsakerKenneth (2014) ‘An investigation into the effectiveness of public entities’ procurement practices ‘, Oxdford University, pp. 104-124.

Semanik, J. (2010) The Procurement and Supply Manager’s Desk Reference, New York: DIANE Publishing.

Sollish, F. (2011) How to improve the procurement and supply of drugs in the Federal Government, Boston: Purdue University.

Stank, D. (2014) ‘Applying strategy–structure–performance paradigm to the supply chain environment’, International Journal of Logistics, pp. 47-51.

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