...PURCHASING PROCEDURES, E-PURCHASING, AND SYSTEMS CONTRACTING The purchasing department generates added value and profitability for the entire organization by communicating with suppliers to procure high-quality goods and services at the lowest cost and at the right time. This value is restricted by archaic and inefficient processes involving paper documents and time-consuming tasks. The E-Purchasing Solution automatically sends purchase orders, purchase requisition forms, etc… from SAP ensuring completion and timely approval of documents that are sent to your suppliers. You can easily track documents to verify they have effectively been sent ensuring that no order has been lost or misplaced. ERP FAX EMAIL Purchase order Purchase order copy Purchase order copy EMAIL Purchase department Production planning Accounting department Suppliers Purchase Manager Validation form by e-mail Automatic file Warehouse ERP FAX EMAIL Purchase order Purchase order copy Purchase order copy EMAIL Purchase department Production planning Accounting department Suppliers Purchase Manager Validation form by e-mail Automatic file Warehouse The Purchasing Policy The driving force behind any purchasing corporate policy considers the following objectives: 1. Spend corporate funds wisely. 2. Operate in a professional manner. 3. Purchase the right materials in the right quantities, at the right time and price, from the right source. 4. Practice the highest level of ethical standards...
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...C A S E S T U D Y MasterCard Best Practice Case Study - Harvard University A T - A - G L A N C E Harvard’s GE MasterCard Corporate Purchasing CardTM delivers a range of benefits such as expense reduction with improved efficiency, tighter cost control and saved manhours: • Ease of use and improved productivity for employee • Reduced bank fees • Reduced check costs and related invoice processing costs • No rework- 100% first pass yield • Improved employee satisfaction • Decreased cycle time -from 22 days to 2 days • Enhanced supplier relationships -reimbursement within 48 hours • Enhanced data capture and more accurate accounting information • Accelerated purchasing process • More efficient A/P team -- 30% reduction in check issuance • Fewer vendor records added to the ERP system • Less activity in the customer service group regarding: problem resolution - 20% reduction in supplier calls www.mastercard.com/gov GE Capital's implementation of the MasterCard Corporate Purchasing CardTM solution at Harvard University has resulted in direct cost savings for the organization, greater employee productivity, enhanced efficiency, improved supplier relations, reduced rework and improved cycle times. The GE Capital MasterCard Corporate Purchasing Card has helped the university more effectively manage and control its payment processes. Harvard University, founded in 1636, is the oldest educational institution in the United States. The university currently...
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...Chris Middlebrooks BUSG 528 5/2/2012 2. Pro forma financial statements are predictions of the future but they are based on the past. The past is a good indicator of the future and the trends of the past used as a foundation to estimate the future. 4.a. $100,000 ($80,000 * .5 + $120,000 * .5) b. $75,000 ($80,000*.5 + 70,000*.5) I am not sure about the 45 day cycle. Would it only be half of the AR from August? So perhaps it would be $80,000*.5 + $70,000*.25=$57,500 c. - $100,000 ($80,000 * .5 + $120,000 * .5) It seems like this answer would be the identical equation to questions A because the other 50% that is not received in cash is in AR. - $117,500 or $135,000($80,000 *.5 + $120,000 *.5 $70,000 * [.25 or .5]) I am having the same issue on this one that I had on B. How do you factor the 45 days? Would you factor half of the months beginning receivables? 6. net sales: C19+C19*C4 Equity: c37+d28 8. Based on the monthly cash budget there will be cash deficit in March. This would be an indicator to the treasurer that an investment would not be feasible at this point. Quite the contrary it appears that a bank loan will be required in order to keep the company in a positive cash position. If I were the treasurer of this organization I would forecast the cash position for the rest of the year and use that information to determine the correct amount of cash necessary to keep the company in a positive cash position at least through the...
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...of information sources, the Internet, personal networks, and social media platforms rate highly, and much higher than traditional information sources such as television, radio, and direct mail. In fact, more than 70 percent of consumers use the Internet while shopping for new and used vehicles—more than double the usage of any other information source. This reflects consumers’ growing desire for an objective resource of trusted information. Increasingly, analysis shows that consumers are relying more and more on their social media networks and trusted connections for guidance on vehicle purchases. A primary conclusion to draw from these trends relates to control and influence: The most influential sources of information in the vehicle purchasing process exist beyond the traditional span of control of the OEM and dealer to include social influences. 2. Manage the customer experience: The challenge of managing a customer experience that lives beyond the boundaries of the OEM’s four walls is not new. After all, manufacturers have worked to manage customer relationships through independent dealerships. However, due to the ways in which consumer power and vehicle shopping influence are rapidly changing, consumer expectations about their experience in the dealership (which they view as inseparable from their experience with the vehicle brand) are also transforming. What’s more, the customer experience lifecycle features many more touchpoints compared to what existed 10 or 15...
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...Kudler Fine Foods Operations Focus This paper will define how Kudler Fine Foods can benefit from Internet purchasing and how this new system and process will be implemented. This paper begins by analyzing Kudler’s current purchasing processes and systems and makes recommendations to systems and processes that Kudler could use to improve their current processes. Incorporating an Internet-based purchasing system would add convenience and provide Kudler with sustaining a robust customer and supplier relationship. Currently Kudler has no purchasing department in any of their locations but standard purchasing procedures have been implemented. Currently each department manager in each location determines requirements for the items his or her department sells. These managers place purchase orders directly with suppliers using standard purchase order forms in each location. Departmental managers have the responsibility to obtain the best price, quality, and delivery possible. Managers also receive and verify the orders to decipher if they received the correct items and quantities that arrived in undamaged condition. Items are documented on an order received form and forwarded to accounting in order for the invoices on the items to be paid (Kudler Fine Foods website, 2011). The department managers at each location must check with their counterparts in other locations on the pricing, quality, and delivery of the merchandise they order. Managers are also encouraged to combine orders...
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...Transformation Expectations, and Product-Evoked Emotions in the Purchase Process.” (Richins, 2013) The focus of the article is the accuracy and claim that purchasing brings an individual happiness. I found this article to be of interest not only because it focuses on the ‘People’ aspect of the Modern Marketing Management Four Ps (Kotler & Keller, 2012), but it an interesting insight of consumer behavior from a psychological point of view. This article examines the emotions evoked before, during and after purchasing a product and introduces the concept of hedonic elevation. Hedonic elevation is simply the concept of relating to something with either a pleasant, or an unpleasant, sensation. Lastly, this article focuses on product-evoked emotions between high and low-materialism consumers through the performance of three separate studies, using five different hypotheses. The main emotions that are studied throughout article are joy, excitement, contentment, optimism and peacefulness. Materialism has three main components: a measure of personal success based on what one has acquired in life, that concept that acquisitions and happiness are interdependent, and the simple process of frequently acquiring possessions. This article is the first of its kind to study how various feelings, associated with purchasing a product, may change throughout the purchasing process. It is also an excellent study of the socio-cultural environment at a micro level. Study 1 includes the following hypotheses. The first...
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...agreed-upon prices over a specified period. Because the seller holds the stock, blanket contracts are sometimes called stockless purchase plans. Product value analysis is an approach to cost reduction in which components are carefully studied to determine if they can be redesigned or standardized or made by cheaper methods of production. Organizational buying is the decisionmaking process by which organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. The Business Market versus the Consumer Market • • • Fewer buyers: Business marketers normally deal with far fewer buyers than do consumer marketers. Larger buyers: Buyers for a few large firms do most of the purchasing in many industries. Close supplier customer relationship: Smaller customer base and importance of larger customers, suppliers have to customize offerings to meet the needs of individual customers. • Geographically concentrated buyers Derived demand: Demand for business goods is derived from demand for consumer goods, so business marketers must monitor the buying patterns of ultimate consumers. • Inelastic demand: Not much affected by price changes as producers cannot make quick production changes. • • Chapter 7 -...
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...culture? What are the laws or rules of that particular government? Is this a profitable market for our company? These questions are answered through identifying the three major foreign markets. Understanding the individual consumer markets, industrial markets and government markets will give a solid understanding of global business. Analysis of the major markets. The major markets within all Foreign Markets Consumer markets are products and services for the consumer. They make up about fifty percent of the gross domestic products (Gaspar, 2013). Consumer markets are divided into categories. Consumer products, food and beverages, retail such as clothing and transportation. Consumers are purchasing products and services for their individual use. They are not companies that are purchasing product to sell to people. This is important because as history has proven cultures change. Typically styles and trends tend to last a while before they move on to the newest fad. This is particularly important as the producers in consumer markets will be affected by this ever changing industry. The aesthetics and appeal to the consumer is of utmost priority in order to get the product to sell. The industrial market consist of businesses that sales products and materials to other businesses for further processing or resale. These are basically business selling to other businesses. Sometimes this market is referred to as a business market. In this market you have business buying specific products...
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...ought to be from the general ledger balances, adjusted trial balances, original source materials, and the general journal entries. The technique of sampling may be applied in an audit especially if the risk of a material misstatement is fairly low, (Weygandt, at el 2002). The auditing has to report on the financial statements that sampling was used. The main advantage applying statistical sampling is that it minimizes the level of risk faced in performing a test. The various types of transaction and financial account affected include cash sale overview of the Revenue Process, credit sale purchases, cash collection purchases, cash sales account receivable, and inventory credit sales. The most important used financial records are: the Purchasing process order entry which shows the acceptance of client orders for goods and services, (Weygandt, at el 2002). This ensures proper support of client orders for credit endorsement and creditworthiness; Issuance of sales invoices to clients for products billing and shipment; also, dispensation of billing adjustments involving allowances, discounts, and income. Cash revenue processing of the receipt for clients, it helps in recording sales invoices, collections, and credit financial statement for personal client accounts. Therefore correct entry,...
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...SEGMENTING BUSINESS MARKETS Segmentation of markets remains important even though the number of buyers in a business market may be relatively fewer compared to a consumer market. The basic grouping of a business market is by customer location, customer type and transaction conditions. 1. Customer Location On most occasions, business markets are segmented on a geographical basis. Some industries are geographically concentrated. An example is a business that process natural resources locate themselves close to the source in order to minimize shipping costs. 2. Customer Type This sub-divided into four different categories: - a) Size b) Industry c) Organizational Structure d) Purchase Criteria a) Size: Business customer size can be estimated using factors such as sales volume, number of employees, number of production facilities and number of sales offices. Most sellers divide their potential market into large and small accounts, using separate distribution channels to reach each segment. The sellers force may contact large volume accounts directly, but to reach the smaller accounts, the sellers may use a middleman or rely on the internet or telemarketing. b) Industry: Firms that sell their products to other business may want to segment its market on the basis of industry. However, if a firm like the afore-mentioned one were to segment its potential customers by type of customer and then specializing in order to meet the needs of organizations then they would be...
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...Course Number & Title Instructor's Name Month Day, Year REASON 1 – Logistics cost – The first and foremost reason of not purchasing directly from a manufacturer is that the cost of logistics would be saved. When a trader purchase goods directly from wholesaler they can purchase in less quantity as compared to that of the manufacturer. The higher the quantity the higher would be the cost of logistic (Zikmund and Stanton 1971). The logistics cost would decrease the profit margin of the trader. It is not only about the cost but the problems and responsibility also gets increased. The trader then has to take care of the stored goods and also incur expenses to keep them safe. REASON 2-Unbounded purchase quantity- When a trader buys goods from a wholesaler it is not mandatory to buy a huge number of quantities. Although there is a prescribed number of units that are mandatory for a trader to buy from a wholesaler but it is lower than that of the quantity purchased from the manufacturer. If the purchase is made directly from a manufacture then again there would be a problem of large order. This is another reason why Mal wants to avoid purchasing directly from the factory (Lammers T. 1995). One reason associated with this is also that the trader has to pay several months advance to book the goods he wants to purchase. This adversely affects the credit cycle of the firm. REASON 3- Better choice of products- A wholesaler has so many brands of the same product available with him (Arthur...
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...important topic Purchasing span of control, look at text book, under index, SPAN OF CONTROL, pg 41-42 , chapter 2 Discuss the various of approaches under the responsibility of span of control? Purchasing authority – pg 41-42 Purchasing authorities, chapter 2 Under purchasing responsibility, Is also mentioned in chapter 5, under pg 164, under placement of purchasing authorities. Create your own questions, by describe, discuss, define. Purchase order- chapter 2, pg 61, blanket purchase order. What are the difference between purchase order and blanket purchase order? Blanket order is an open order. Value chain- tell where can you find value chain? What is the meaning of value chain? Value chain => primary activity.Don’t draw the diagram. Explain the meaning of value chain. Various Primary and supporting activities. Human resource, etc. S3,C2 don’t draw. Draw the rest. pg 12 Chapter 1 (Can draw SIMPLE diagram) Placement of purchasing authority- pg 164 is divided into two levels. Under decentralization, business levels, side level. and centralization, Coordination of activities with other functional group- pg 158 – 159. Draw one organizational structure. Draw C, the most appropriate one. Pg 369 (25 marks) Difference between international and global sourcing, pg 369 , 347, 2nd paragraph ,draw the diragram. Sources of power in buyer-seller negotiation ( 25 marks) from textbook, straightforward answer. MCQ read from slides. Ethical-> if u are a purchasing director,...
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...become a very vital option as an earning source. Businesses provide goods, services, and jobs. Without businesses, every family would have to be experts at all facets of life: cooking, mechanical work, farming, surgery, computer manufacturing, video production, etc. Life would not be practical. Business provides needs and wants. It's much easier than being self-sufficient for everything in your life. It then helps with specialization of task, then everyone is more efficient in what they do and as a result, society has more. Concept Keeping track of grocery items has been a major concern of all household since the beginning of time. There are a number of items that is being purchased in the household. All of these products has a life cycle, either to use them or expire date. Our concept for a new business/service is to have a mobile app that will help keeping track of the groceries in the household. This service will be an extended service of a super shop (example: Agora, Nandon). The super shops have a membership system. Under that system they collect information about the customers shopping habits. Our app will be updated as soon as the members shopping from the super shop with the list of purchases and their validity period. The app will calculate the time the member needs to purchase those items again and will notify them. The Service Super shops have become a major source of daily household product supplier. From raw meat to spices, from dental hygiene to electronic...
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...sells merchandise. Good examples of merchandising businesses include retail clothing, grocery stores and bookstores. Many people use the term "widget" to refer to any merchandise a business offers for sale when discussing business issues and dynamics. For example, a sale in which a customer receives two widgets for the price of one may refer to any type of merchandise. It could mean two pairs of shoes for the price of one or two boxes of pasta for the price of one. A merchandising company purchases inventory items to resell to customers. The company buys from several vendors and provides a central purchasing point where customers can purchase everything in one stop. The customer benefits by making one convenient stop for all her needs. Inventory represents the primary asset of a merchandising company. The typical financial transactions of a merchandising company include purchasing inventory, storing the inventory and selling the inventory to customers. These activities may occur in one or more accounting...
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...used in mm? How to remember movement types? Organization: ABC Company Ltd. Deals with Automobile spare parts manufacturing. The divisions include Casting, Milling, grinding and polishing. Core Raw materials are different metals like Copper, Bronze, Silver, MS1023 and MS1045. But they also treat sub parts like <To_be_Division_Metal> for example To_Be_Milled_Copper also as their raw materials. Create sample Master data and Purchasing transaction data. Materials: Core four metals are raw materials and also 4*4 divisions 16 are other raw materials. Total number of raw materials you need to deal with are 20. Vendors: As far as Vendors are considered each metal they maintain 4 vendors, so 16 vendors. You can procure that metal and also <div_metal >from those vendors. Purchase Info record: This must be maintained for all Metals and Vendors. Optional for <Div_metal>. Source list: 1. Mandatory for all metals but optional for Milling and polishing. 2. Copper and Silver mandatory for casting and grinding. Purchase Cycles: They have 5 different processes as shown below: 1. Direct Procurement ie. PO-> GR->IR or PO-> IR->GR. (Stock must be kept in QI initially) 2. Known Vendor Procurement ie PO-> GR -> IR. Must not allow IR without GR. 3. New Metal Procurement for Copper and Silver (or Rare metal procurement) ie. PR->RFQ-> PO->IR->GR.(Stock must be blocked initially) 4. 5. Value Contract for MS1023 with...
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