Essay About Impact Of The New Integrated Procurement System And Training Process

Tricty – out of Stock Wiper Blade Case Study
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TricityGeorgina WanyonyiLeopoldExecutive SummaryTo:  City Manager – TricityFrom: Elaine, Purchasing Manager – TricitySubject: Out of Stock Wiper BladeIssue: As you know, we have both internal and external pressure about the impact of the new integrated procurement system. This issue has been effecting purchasing in a negative way from staff resistance on learning how to work with the new system.This has led to problems arising during order processing since most people have no idea of how to use the system. Current issue was with the wiper blade stock problem which caused snow removal truck to be idle. We can’t have such issues coming up in the future again so the main question was how to go about ensuring the most efficient way to execute orders through the system and also monitor the process.We considered various other options to conclude this assignment, as follows:* Hire External Consultants to help with the implementation of the new system*Build a Cross Functional team to come up with ideas on how to make the system* Internal Training session for the staffAlthough these were viable, we feel that the putting aside a few hours to properly train all internal staff on how to use the system would be a huge benefit to the company. Most of the employees have been in the company for more than ten years so definitely changing how they used to do their tasks will take a great deal of dedication from the management and also just educating them on the importance of this change. We would require at least another two weeks once we have secured a good consulting company for the training process to begin. Building a cross functional team will help come up with innovative ideas on how to improve business processes throughout the company to achieve our goals. The added costs will be easily covered by the greater benefits expected from the concluding result. Details are in the attached report.I look forward to receiving your approval of this recommendation, so that it can proceed immediatelyRespectfully,size-up:ItemSo What ?                   Timeline: Immediate Concern. It’s not really specified how long the out of stock wiper blade idled the snow truck removal.The purchasing group main purpose is to influence and enable. They don’t seem to be doing this! With the new computer system the purchasing group should make sure that every order is being processed efficiently.The fact that Elaine has no idea how many others orders that were not being processed by the new system means that the purchasing group are not doing their duties. Current Ordering Process:- The current ordering system is very tedious and consists of non-value added activities The purchasing staffs are either spending time tracking orders! This is Mudda.The supplier payments are coordinated by the purchasing group this should be done by the Finance & Administration.Integrated Procurement System:The system is not customized to the purchasing and supply department. Its main focus is FinanceThe idea of an integrated system is good part on purchasing group although they should work around making it in sync with purchasing activities and making it easier on the staff. We can’t have the staff wasting time trying to manually input information its tedious and can lead to data errorsPlayers: All internal Customers and suppliersPurchasing should look into satisfying their internal customer’s needs. Their goal is to enable and influence, making the ordering process easier to do.The feeling of losing control o negative attitude toward the new system shouldn’t discourage, the management has to go along with plan and show support if the top management aren’t helping with the process there is no way the employees will embrace this new changeWarehouse utilization. Items bought in bulk were stocked and purchasing staff had to prepare it for pick up!This is waste of space and non value added activity for the staff. I don’t understand why purchasing department hasn’t looked to having blanket orders with their regular suppliers and ensuring that any repetitive items that were bought through blanket Purchase ordersProblem Statement:How can Tricity come up with the best solution on how to efficiently execute and monitor the business processes i.e. the integrated Procurement system while maximizing customer service both internally and externally?Analysis:Strengths –Enough funds to invest on anew intergrated system so as to increase efficiency of the company business processesWeaknesses –   mismanagement and control of the new system might lead the company not to accomplish its goals to the cityOpportunities – Opportunity to invest more on this new system to make it more centralized so as to give the company a competitive advantage. Threats – insufficient public funding and government’s budget cuts and external pressure from elected representatives limit the implementation of the new system.Qualitative – **Ordering Process and Integrated ProcurementThe current issue with wiper blade stock out seems to be a result of one of the customers failing to transmit through the new system properly. This bring into question if everyone the customers who had access to this system had been properly trained on how to use it before the system was launched.This new system is a strategic decision so Purchasing should have the to managers support on this so as to get rid of resistance from internal customers as well as external pressure from elected representatives.