The introduction of the Internet has challenged numerous value chain propositions and processes. Its low cost, low barrier of entry and timely distribution of information provides a seamless extension of processes across company borders. Especially in the business-to-business (828) realm, its introduction has however sparked criticism and controversy and many companies are still weary of trading on-line. e-Procurement is a sound solution for companies to initiate the e-wave as it promises high cost savings. Savings promised include a reduction in processing cost, reduction in the supply base (which leads to cost savings) as well as negotiating better prices through the availability of sufficient post-purchase information. Maverick spending (off contract purchasing) is also reduced through better-controlled purchases. A framework is developed in this research to assist in the evaluation of the suitability and scope of a proposed e-procurement implementation. Due to the numerous aspects involved in procurement and therefore also e-procurement, the following five dimensions are addressed in the framework: 1. Procurement and Processes. Although e-procurement does not address all procurement related aspects, such as strategic sourcing of supply, it has an operational focus and reduces processing time and costs. 2. Products. Products can be categorised by means of many different aspects, but the following main characteristics influence the categorisation decision: i) Its function within the organisation, ii) Product characteristics (homogenous or heterogeneous), iii) Product value and iv) Number of suppliers. Indirect goods with a low unit value, supplied by a large number of homogenous suppliers are regarded as susceptible for e-procurement. 3. Purchasing role players. Many different role players function within the purchasing arena, each influencing the purchasing function. The main aspects to be considered when considering e-procurement are: i) Buyer characteristics (demography and background), ii) Supplier characteristics and channel strategy (the supplier's position in the value chain as well, as if the relationship is cohesive or conflicting), iii) Market forces (supply and demand laws as well as market competitiveness) and iv) Industry related purchasing (the product purchased and its significance). 4. Purchasing and Supply Chain Management. The introduction of the Internet has opened up the possibility for planning across the supply chain planning, using techniques such as CPFR. This will result in a pull rather than a push model. For products to be ordered electronically, the following information should be available: i) Stock levels and ii) Current or forecasted demand. Absence of accurate information of any or both of the above would result in a preference for manual ordering. 5. Trading and Information Exchange. Each buying situation may require a different e-procurement solution It is important that users firstly establish the commerce arena requirements (the product characteristics, sophistication of the buyers as well as inefficiencies of current transactions) which will influence the choice in e-procurement business model, trading platform, data format, etc. Thereafter the aspects necessary for consideration are: i) The data format (XML vs. EDIFACT, etc.), ii) Information platform (Internet vs. Intranet, etc.), iii) Integration needs (integrating with back end systems such as an ERP system) and iv) Different e-procurement solutions. Using a qualitative model considering dimensions 1 to 3 above, the susceptibility of different products or commodity groups (products with similar characteristics grouped together) should be examined. For each of these products or commodity groups the preferred e-procurement solution should be crafted by applying dimensions 4 and 5 above. Combining the qualitative ratings with the preferred solution should provide the most feasible e-procurement solution, while simultaneously rating which of the products should be purchased through the solution. / Dissertation (MIng (Industrial Engineering))--University of Pretoria, 2006. / Industrial and Systems Engineering / unrestricted

The main research problem addressed in this study was to determine the key factors required by purchasing and supply departments in the automotive manufacturing industry to be efficient and effective. To achieve this objective, it was necessary to identify five sub-objectives which were, firstly, to determine the extent to which the purchasing and supply departments in the automotive industry believe that certain key factors in pricing, quality and supplier management are required to achieve excellence. Secondly, to identify if the purchasing and supply departments in the automotive industry actually implement the key factors on pricing, quality and supplier management in practice. Thirdly, to determine if there are any additional factors other than these key factors that business firms regard as key factors to be classified as worldclass purchasing and supply departments. Fourthly, to analyse why purchasing and supply departments in the automotive manufacturing industry do not always implement these key factors. Lastly, to identify any other factors that could have a significant negative impact on the performance of purchasing and supply departments. The study commenced with an analysis and review of relevant literature from various text books, journals, publications and internet sources. The literature study covered issues such as price determination, cost management, basic negotiation strategies, managing supplier quality and the supplier base, as well as a general overview of the latest developments in purchasing and supply management in business. The purpose of the literature analysis was to establish a theoretical basis for the design of the questionnaire which was used as a research instrument in this study. A survey was conducted among selected automotive assemblers and their first and second tier manufacturing suppliers in the automotive industry. The main areas of focus in the questionnaire were pricing, quality, and supplier management. As the questions in the questionnaire related to the purchasing and supply department of a business firm, a qualified and experienced buyer in the purchasing and supply department was identified in each firm to complete the questionnaire. The empirical results from the study conducted indicated that the respondents were in strong agreement with the proposed importance of the factors of pricing, quality, and supplier management required to achieve xcellence. However, the respondents also indicated that there were various obstacles which prevented the firms from implementing these key factors. Some of the obstacles mentioned were long lead times, late deliveries from suppliers, too few competitors in the market place, supplier capacity constraints and the sustainability of suppliers. Additional obstacles that the study identified were the high workload of buyers in general, incompetent staff and insufficient manpower that affected the performance of a purchasing and supply department. The buyers were not only performing buying activities, but were also involved in logistics related activities, which increased their workload and negatively affected their performance. Lack of specialised purchasing and supply chain knowledge was identified as another obstacle to achieving excellence. The empirical study highlighted some recommendations to assist purchasing and supply departments in the automotive industry to achieve excellence and become world-class departments. Examples of these recommendations are that suppliers need to be educated on how to understand their costing models and to check their own sustainability; local purchasing and supply departments require training in the purchasing skills such as incoterms, delivery times, minimum and maximum order quantity; as well as the payment terms. Buyers should be trained to become experts in their products and packaging, as well as the manufacturing process of the product they are purchasing The business firm should only employ qualified buyers who have financial and administrative skills, as well as the ability to adapt to change and work in teams. Buyers also need to master the in-house systems and work procedures involved in purchasing a product. The empirical study also identified that the majority of buyers in the automotive manufacturing industry are senior buyers, male in gender and between the ages of 40-49. The implementation of the recommendations based on the study’s empirical findings will assist in improved pricing, quality and supply management in the automotive manufacturing industry.

The reason for the existence of any company is to make a profit, which means increasing turnover and keeping costs as low as possible. Optimisation of the Value Chain and Procurement were identified as the two largest contributors when one needs to improve the bottom line of any company. The purpose of this research was to develop an integrated Value Chain and Procurement cost reduction methodology and system specifications for a software solution which captures, tracks and accurately reports the impact of the improvement initiatives. The main research question was structured as follows: What should the specifications of a software solution be that will integrate the cost reduction processes of the Value Chain and of Procurement, in a manner that will ensure maximum sustainable bottom-line savings for companies in the manufacturing or service industries? The objective was to define the key phases in the Value Chain and Procurement cost reduction process and to determine how and where they integrate. It is important to note that according the literature review and the survey, both the Value Chain and Procurement cost reduction processes consist of seven phases. The phases of the Value Chain cost reduction process were: Phase 1: Budget/ABC costing and data analysis; Phase 2: Generate ideas; Phase 3: Evaluate and approve ideas; Phase 4: Implementation planning and approval; Phase 5: Development of project (idea) specific KPI's; Phase 6: Implementation of ideas; Phase 7: Track and report savings. The phases of the Procurement (Strategic Sourcing) cost reduction process were: Phase 1: Team selection/data collection/spend analysis/work plan development Phase 2: Access requirements/internal and external analysis; Phase 3: Develop strategy/shape value proposition; Phase 4: Screen suppliers, issue RFI/P/Q, implementation planning; Phase 5: Conduct commercial event/negotiate/finalise contract; Phase 6: Implement contract; Phase 7: Contract management/track and reporting. The above two cost reduction processes integrate at each phase of the respective processes and should thus be implemented at the same time due to their interdependencies. Based on the findings of the research it was clear that an integrated Value Chain and Procurement cost reduction process alone is not going to solve the cost reduction problems of companies. It is essential for the successful implementation of the integrated cost reduction process to develop skills and knowledgeable resources to implement the integrated cost reduction process, improve collaboration between the Value Chain and Procurement, and to implement a system to track and report performance during implementation. Further research should include how to adapt the current company processes, structures, procedures and systems in order to gain maximum benefit from the implementation of an integrated cost reduction process. The integrated Value Chain and Procurement cost reduction process, supported by a software system, should improve the success of cost reduction projects in companies. It is, however, important to note that the application of the methodology will vary between industries and that service-related industries might put more emphasis on Procurement cost reduction, while the manufacturing industries might place a bigger emphasis on cost reduction in operations. In conclusion, irrespective of the industries, it is evident that this methodology will enhance the cost reduction results previously obtained from similar efforts.

M.Com. (Business Management) / Background Best cost country sourcing is a relatively new concept and not many organisations are utilising this specific process nor are they optimising this as their sourcing strategy. Best cost country sourcing is one of the most profound sourcing processes available, and it has the ability to increase an organisation’s efficiency and effectiveness if implemented correctly. Purpose The purpose of this study is to determine if best cost country sourcing should be used as an alternative to local sourcing. It includes aspects of the best cost country sourcing process as well as its risks and advantages. Research method The dissertation analyses the process of best cost country sourcing and the effect it has on an organisation’s sourcing strategy. To achieve this understanding it is necessary to do a qualitative investigation, which is the reason a qualitative research was used as the research methodology in this dissertation. Conclusion Pursuing the process of best cost country sourcing requires a lot of dedication and implementation time. It is a complicated process and no two situations will be alike. Each organisation would need to determine the advantages, risks and challenges which they will encounter with best cost country sourcing. Organisations would also need to determine the best cost countries, as well as the criteria they would need to use in selecting potential suppliers.

The purpose of the study was to explore barriers to supplier development encountered by SMEs as suppliers in the South African railway industry. The first objective was to identify barriers faced by SMEs to be suppliers of large OEMs in the South African railway industry. The second objective was to establish the challenges that lead to failure in the supplier development process. The third objective was to describe the activities done by SMEs to position themselves in becoming preferred supplier development candidates for OEMs in the South African railway industry. SMEs as suppliers in the railway industry were interviewed through an explorative interview. The interview targeted suppliers who were involved in the railway industry and who are actively seeking contracts with the South African railway operators. The findings are that new suppliers are experiencing barriers to enter the railway industry. The key barriers for new suppliers are industry human capital, industry regulation, capabilities, ineffective government intervention and lack of resources. The main challenges identified during the supplier development process are the long bureaucratic process related to supplier development on-boarding, miscommunication and lack of transparency. Suppliers also faced challenges in the way they position themselves in becoming preferred suppliers development candidates for OEMs in the South African railway industry. Recruiting railway expertise and innovating compliant products were the most effective measures taken by suppliers in becoming a preferred supplier. / Dissertation (MBA)--University of Pretoria, 2014. / lmgibs2015 / Gordon Institute of Business Science (GIBS) / Unrestricted

In this study the researcher attempts to advance the understanding of the structure of firm buying centers for air travel services. First, an attempt is made to find empirical support for the proposition that firm air travel service buying centers can be grouped on the basis of their size, degree of complexity, centralization, and formalization. The study investigates the relationship of size, structure, and technology of the organization as a whole to the structure of the buying center. Diagraphs, or pictures representing the members of the buying centers, and the communication flows between those members, allow the researcher to record three constructs of buying center complexity: lateral involvement, vertical involvement, and connectedness. The size of the buying center is defined as the number of people within the organization who participated in the buying process from the reservations phase to the final payment of the supplier. The degree of centralization is determined by the number of communications between the travel manager and other buying center members. Formalization of the buying center was operationalized as the percent of written versus verbal communication in the buying process, the extent to which the process was governed by rules and policies, and the degree of compliance with policy. Significantly different mean values were found in buying center size and the degree of written versus verbal communication across the three cluster analysis-derived groups. None of the other buying center variables were found to differentiate the groups. Of all the organizational variables, only firm size, as measured by the absolute value of air travel purchases per year, was found to be a better-than-chance predictor of group membership. Additional research on participation during the contract negotiation phase is suggested. It is further proposed that future researchers wishing to study corporate travel in an industrial marketing context begin to study influence on, in addition to participation in, the buying process. It is further suggested that these issues should be investigated in the context of global as well as domestic organizations and evaluated on a longitudinal basis. / Ph. D.

This study examined whether situational variables influence members of the buying center when deriving an evoked set in an organizational buying scenario. Buyclass, risk, and power were the focus of the study. This study examined the process organizations go through when deriving evoked sets and the role situational variables played in that process. This process was examined within the context of organizational buying scenarios. The organizational buying process is different from the consumer buying process. The organizational buying process includes a series of incremental steps. A decision or decisions are made at each step. The first step in the decision process is the recognition of a problem and the formulation of a set of potential solutions. This initial group of solutions is an evoked set. Organizational buying decisions are made by a collection of people within the organization. These individuals interact through the phases of the purchase process making the necessary decisions. This group is called a buying center. The buying center is influenced throughout the buying process by a number of variables. This study focused on three situational variables: buyclass, risk, and power. However, other variables were revealed. A proposed model for understanding the organizational buying process was constructed and presented in the literature review section (Chapter Two). This model incorporated situational variables in the overall buying process. While the study was conducted within the context of the proposed model, the proposed model was not tested. The proposed model may provide context for future studies in the area of organizational marketing. The research questions and propositions suggested in Chapter One were examined within the context of the hospitality industry. Specifically, this dissertation has studied how situational variables influenced buying centers within associations while the buying centers were formulating evoked sets while searching for an annual convention site. The sample for the study was drawn from associations headquartered in Washington, D.C. / Ph. D.

No description available.

Master of Science

by Leung Chi Yui. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1981. / Bibliography: leaf 42.