Purchasing Function in an Organization

 

MT436-1: Discuss the role and mechanisms of the purchasing function in an organization.
GEL-1.02: Demonstrate college-level communication through the composition of original materials in Standard English.
Instructions:
• Begin by briefly describing the organization you will be analyzing. Include at least this information: What do they do, what is their overall strategy for competing in the marketplace, how big are they? Feel free to hide names if confidentiality is an issue.
• Describe the purchasing objectives of your company based on the discussion that begins on page 42 of your book. List at least two strategic and two tactical goals.
• Do you think these goals are appropriate? What would be better goals that would serve the company better? Recommend at least one additional goal.
• Based on the discussion that begins on page 119, describe the internal integration of the procurement function of your organization. For two functions in your organization, describe the various linkages and flows that promote this integration. Use exhibit 4.1 as a guide.
• Do you think a sufficient level of integration exists? What additional linkages would you want to see? Describe at least one.

 

Sample Solution

shift its base to West African due to increased demand in Europe, as new routes are being sourced by the traffickers to emerging illicit drug market. The report by UNODC (2007), made a remark that even if the entire drug supply source are to be eliminated, either at the source or traffic routes, there will be a lot more drug addicts that will be looking for alternative way to satisfy their drug addiction (UNODC: World Drug Report 2007). However, this argument has also proved that increase risk will not only increase the price, but it will not deter a hardliner drug addict to quite its habit

According to Antonio (2008), the large consumption of Cocaine by the Europeans countries, which he estimated to be around 4 million people, using about 36 thousand kilograms of the trafficked drug each year (2006) made it difficult for a price shift, as the increase of risk will definitely affect the price. The traffickers will do all it can take to get the drugs to its final destination, as traffickers tend to move to different routes and dealers will move to different new areas to avoid law enforcement apprehension. These approaches of diffusion make traffickers stop at the different location due to perceived risks, prompting dealings to reduce on other known routes or corners.
Despite the fact that increase risk might affect the level of supply downwards, it will increase prices and profits, causing more agents, traffickers, drug mules and more farmers to take to the trade of illicit drug and crop market, however, the danger associated with taking part in the drug trade may cause uncertainty, thereby prompting the drug traders to switch to alternative method of lively hood that are legitimate and less risky.

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