The presented work relates with the purchasing management in construction. It consists of two parts. In the first part, we will focus on the theory of purchasing, then discuss the individual steps of the purchasing management and inventory management in the business. Moreover, we will bring insights from the area of suppliers - their selection and evaluation. In second, practical part, we analyze the current state of the purchasing management in selected companies. The output of attached work is a proposal for improvements and recommendations for business purchase following performed analysis.

D.Com. (Business Management) / In recent academic journals it is clear that the marketing of services is still a popular topic of research. Although not surprising, the bulk of the research centered around aspects such as marketing strategy, service quality and the difference between product and services marketing. The aspect of risk perception, particularly in the buying process of services, has received rather marginal attention from researchers and the interest in the relationship between risk perception and information acquisition has only recently been revived in the work of Murray (1991). A topic still to be resolved in academic research, is the involvement of risk perception in the buying process of industrial services. This study is primarily concerned with the relationship between risk perception and the information acquisition behaviour of buyers of industrial services in contrast to the purchase of consumer services. To make a contribution to the scientific understanding of the marketing of services, six hypotheses were proposed to be tested in an experimental setting. The hypotheses postulated selected behavioural patterns of decision maker in reaction to the independent variable of manipulated risk perception. The experimental design used, was a 2x3 repeated measures design where the independent variable was manipulated with one of five randomly assigned services in each category of a continuum of three different levels of risk perception (High, medium and low risk). The dependent variables constituted measures of source usage, source effectiveness and source confidence. The three dependent measures were operationalised by a 25-item rating scale derived from Andreason (1968) and Murray (1991)...

Abstract This thesis focuses on how applying the Vendor Managed Inventory (VMI) to the enterprise affects the operation cost from the manufacturing perspective. The inventory level of an industry has a crucial impact because it influences the profits, the capital transferring, the inventory space, the quality of products, the administrations, etc. Moreover, the inventory level and the procurement management are so highly related to the overall manufacturing cost that the profitability and competiveness of an industry can be influenced as well. Thus, the relationship between the enterprises and their suppliers has evolved from the traditional price-driven transaction mode to the cooperative relationship. Through the VMI, the suppliers are able to not only be shared with the inventory information from their customers, but have the right to manage customers¡¦ inventories; hence, the customer side can avoid the overcapacity or the shortage as a result of the surplus or insufficient inventories respectively. As a result, the inventory level can be reduced and the high quality service can be provided. The study of our research is based on the factors related to the profitability and efficiency in the enterprise achievement appraisal. I find that the inventory level directly influences the profitability-related factors, and the inventory is also involved with many aspects in the supply chain management, such as the supplier management, the relationship with the suppliers, the procurement strategies, etc. Furthermore, it is feasible to lower the inventory level through the process of the VMI according to the results of our questionnaires. We also held several comprehensive interviews with the industries which apply VMI for years. The useful opinions and suggestions collected from these industries are generalized to a proposal which can be used and referred for the individual enterprise. We hope the results of this thesis have the positive effects for the industry. Key words¡G Inventory control ¡APurchasing management¡AProfiable¡ACompetiable, VMI

Historically small and medium size enterprises have been playing a major role inwestern economies for years. The importance of SME for developed economies is obvious fromstatistic data. In instance, according to European Commission annual report on SMEs in 2008, in European Union there were over 20 million enterprises where about 99.8 % of them were small and medium sizeу enterprises. Taking into account importance of SME for economy, it becomes necessary to pay careful attention to academic studies of management practices in small to medium size enterprises. In our days, strategic purchasing is one of the foremost discussed topics of business development. Carr A. (2002) states that since the mid of 80th, strategic role of purchasing has continuously been in the focus of attention in academic and trade journals. However, despite of growth popularity of strategic approach to purchasing management, there is low amount of analysis on hybrid theme of purchasing management in SMEs. Thus, realizing the importance of small to medium size enterprises for national economies and understanding strategic purchasing management as the competitive advantage of the business, the purpose of current master thesis project is to analyze implementation of strategic purchasing and its supplier selection and supplier development functions in SME. In order to accomplish the research purpose, the analysis includes the profound literature on the studied topic; moreover additional effort is put to research the achievements of previous studies on purchasing management in SMEs. Finally, the empirical study of strategic purchasing in small to medium enterprises is performed through interviews with 5 (Five) top managers of small firms operating in Russia. Obtained primary data results are compared with secondary data, so that, cross regional comparison on implementation of strategic purchasing in SMEs of Russia, Denmark and United Kingdom was performed. During the research, the following conclusions were obtained. Cross regional comparison indicates similar level of implementation strategic purchasing, supplier selection, and supplier development functions in SMEs of studied countries. Different share of SMEs in economies of these countries does not impact on strategic purchasing practices. Small and medium size firms show partial implementation of strategic purchasing principles. Supplier selection in small to medium size enterprises is performed mostly in traditional way. No methods on rationalization of supply choice are held. Meanwhile, supplier development programmes are practiced broadly by SME. Small to medium size enterprises tend to undertake “indirect” supplier development programmes. Therefore, SMEs’ purchasing management consists of both traditional and strategic elements in their practices. Furthermore, such elements of strategic purchasing as top management involvement, cooperation with other functions in organization management, close collaborative and long term relations with few number of key suppliers, do not take additional resources from SME, and vice versa, they benefit to complement short internal resource by external in more efficient way, current research concludes that strategic approach to purchasing management is suitable approach to purchasing management in small to medium size enterprises.

Although there are several solutions available in the industry to manage the vendor risk confronting corporate purchasers in their practices of traditional procurement mechanism, they are not widely accepted among industries practicing the traditional procurement mechanism. Moreover, they are unfeasible to be implemented in the eProcurement mechanism. They rely heavily on self-assessment data provided by vendors or transaction records from purchasing departments, and there is a lack of a systematic approach to accumulate the collective experience of the corporation in vendor risk management. / Moreover, the risk cause taxonomy identified in this study lays out the theoretical grounds for the development of any software applications relating to the deployment of risk perceptions held by procurement professionals and practitioners. / Recently, electronic procurement or eProcurement has gradually acquired wide acceptance in various industries as an effective, efficient, and cost-saving mechanism to search for and contact potential vendors over the Internet. However, it is also a common situation that purchasers do not have handy and reliable tools for the evaluation of the risk deriving from their choices of selecting seemingly promising but unfamiliar vendors, identified through the eProcurement mechanism. The purchasing corporations need to implement a systematic framework to identify, and assess the risks associated with their vendor choices, that is, the vendor risk, and even to memorize their collective experience on risk analysis, while they try to gain benefits from the practice of the eProcurement strategy. / The structure for the establishment of the semantic application identified in this study can be generalized as the common framework for developing an automatic information extractor to acquire Internet content as the support for making important business decisions. The structure is composed of three basic components: (1) an information collection method to identify specific information over the Internet through the deployment of semantic technology, (2) an ontology repository to associate the collected data and the specific data schema, and (3) a scheme to associate the data schema with the analytical methods which would be deployed to provide decision support. / This study proposes the establishment of the Vendor Risk Analysis (VRA) system to assist procurement officers in vendor risk analysis as a support to their decision of seeking promising vendors over the Internet. The VRA system adopts a Semantic-Assisted Risk Analysis (SARA) framework to implement an innovative approach in the implementation of risk assessment. The SARA framework deploys the collaboration of a knowledge-based Expert System and several emerging semantic technologies, including Information Extraction, a Community Template Repository, and a Semantic Platform for Information Indexing and Retrieval, to enhance the capability of the VRA system in the capability of acquiring sufficient risk evidence over the Internet to provide timely and reliable risk assessment support to vendor choice decisions. / Chou, Ling Yu. / "July 2007." / Advisers: Vincent Sie-king Lai; Timon Chih-ting Du. / Source: Dissertation Abstracts International, Volume: 68-12, Section: A, page: 5128. / Thesis (Ph.D.)--Chinese University of Hong Kong, 2007. / Includes bibliographical references (p. 178-186). / Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. [Ann Arbor, MI] : ProQuest Information and Learning, [200-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. Ann Arbor, MI : ProQuest dissertations and theses, [201-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Abstracts in English and Chinese. / School code: 1307.

This study sets out to ascertain the impact that the marketing initiatives of a retail chain have on the inventory levels of the retail chain. The stock levels of a retail chain are the source of many frustrations. However, through developing an efficient and effective supply of inventory, a viable, competitive advantage is created for the firm. The bullwhip effect is the name given to the fluctuation in demand for specific products that is seen through the supply chain, the discoverer of this effect was J W Forrester. The primary objective of this study is to identify whether the movement of stock through the supply chain identifies with the bullwhip effect where the influences of the marketing initiatives are felt. The secondary objective is to discover what impact the different role players have on this phenomenon, i.e. the store managers, buyers and suppliers. The promotion process is utilised as a tool to drive the strategy of the Clicks organisation, but a side effect is the creation of the Bullwhip Effect. The main problem is that the demand for the item is increased for a specific period and then the demand is either reduced to levels lower than before the promotion or will revert to the same level as before. Sales and stock movement data was recorded and graphically displayed to determine whether the Bullwhip effect was created. This research has highlighted the following problems: (a) There is no direct communication between the role players. (b) Decisions are based on somewhat dubious information. (c) Large promotional orders are based on sales history. (d) There are no real measures in place to rectify any errors. (e) The measuring criteria and KPAs differ between the role players. Recommendations derived from this research include: (f) Increase communication between the category buyers and the store managers. (g) Rather than bulk ship stocks to the stores, introduce a staggered shipping approach. (h) Create a position for a specialist person who can deal with the overstocks. This person would be responsible for reallocating overstocks including returning the overstocks to the DCs. (i) Reduce the number of "lost leaders" and extensive advertising of these "lost leaders" and rather concentrate on more generic advertising. / Thesis (MBA)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

Thesis (MComm)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The role of the traditional purchasing department has evolved significantly over the last decade into a competitive value adding procurement function within an organisation’s lean supply chain model. It has become a necessity to work with the suppliers to provide flexible, accurate, effective and cost effective goods and/or services (Barla, 2003; Ellram, 2002). In addition organisations are developing and utilising new business models geared towards improving both the balance sheet and the income statement to respond to external forces and new market opportunities. The change in business model places additional emphasis on leveraging increased innovation from suppliers, thus having a vast impact on supply management to such an extent that organisations are creating strategic relationships (Carter et al., 2007). In this paper, the supplier relationship management model will be studied under lean philosophy as to address the focal point – sustainable procurement. The paper will consist of three main areas: Supplier relationship management – Literature study Supplier relationship management – Case study Supplier relationship management – Operational tool Supplier relationship management – Literature study will address the theoretical methodologies, best practices, benefits and advantages, etc. Supplier relationship management – Case study will showcase a South African multi-national FMCG1 manufacturer’s methodology as well as the benefits of utilising a supplier relationship management approach to procurement. Supplier relationship management – Operational tool will be a practical tool developed for evaluating and facilitating supplier relationship management in an African context. The end result of the paper should be a feasible solution to prolonging the impact of procurement, thus increasing sustainability in the maturity stage of procurement’s life span in the typical product life cycle model (Canny Buyer, 2007). 1 Fast Moving Consumer Goods (“FMCG”) are products that have a quick turnover and relatively low cost (Wikipedia, 2007a). / AFRIKAANSE OPSOMMING: Die tradisionele rol van die aankope department binne ‘n organisasie het oor die laaste dekade merkwaardig verander en word nou bedryf as ‘n kompeterende waardetoevoegende skakel binne die organisasie se voorsieningsketting. Terselfdetyd het dit noodsaaklik vir leweransiers en organisasies geword om op ’n geïntegreerde wyse te werk te gaan om meer akkurate en koste-effektiewe goedere en/of dienste te lewer (Barla, 2003; Ellram, 2002). Organsisasies is ook genoodsaak om nuwe innoverende besigheidsmodelle te ontwikkel om ten beste eksterne besigheidsfaktore en nuwe markgeleenthede aan te spreek ten einde beide die balanstaat sowel as die inkomste staat positief te impakteer. Hierdie kardinale veranderinge in die besigheidsmodel van organisasies lei daar toe dat addisionele druk op leweransiers geplaas word om met innovasie navore te kom. Op sy beurt plaas dit verdere druk op die voorsieningsketting, selfs tot so ’n mate dat dit die organisasie noop om na die moontlikhede van strategiese vennootskappe te ondersoek (Carter et al., 2007). Die skryfstuk gaan leweransiers verhoudingsbestuurmodelle evalueer en bestudeer binne ‘n voorsieningsketting om sodoende die vraag na volhoubare verkryging te beantwoord. Die skryfstuk sal uit drie fokusareas bestaan, naamlik: Leweransiers Verhoudingsbestuur – Literatuurstudie Leweransiers Verhoudingsbestuur – Gevallestudie Leweransiers Verhoudingsbestuur – Bedrysmodel Leweransiers Verhoudingsbestuur – Literatuurstudie sal die teoretiese metodologie, die vooren nadele van leweransiers verhoudingsbestuur aanspreek. Leweransiers Verhoudingsbestuur – Gevallestudie sal ‘n studie loots binne die verhoudingswerkinge binne ‘n Suid-Afrikaanse multi-nationale maatskapy wat in die vinnige verbruikersgoederemark betrokke is. Leweransiers Verhoudingsbestuur – Bedrysmodel sal ’n praktiese voorstel vorendag bring om ’n leweransiersverhouding meer doeltreffende te bestuur in Afrika. Die eindresultaat van die skryfstuk sal dus ’n lewens vatbare oplossing wees om die volhoubare impak van verkrying te verleng in die volwasse stadium van ‘n produk se lewensiklus (Canny Buyer, 2007).

M. Com. (Business Management) / The media and the Auditor General have extensively reported on the ineffective and unethical conduct of public sector employees regarding the procurement of goods and services. The Auditor General’s report demonstrates that there is evidence that public sector procurement processes are less than adequate to achieve constitutional procurement goals, which are to conduct processes that are fair, equitable, transparent, competitive and cost-effective The delivery of services through staff and the procurement of goods and services from suppliers should take place on the basis of proper strategic leadership and management processes. Inappropriate planning and budgeting, failure to identify priorities, under-spending of budgets and ineffective procurement form part of the root causes of poor service delivery to the public, as ineffective procurement leads to the misallocation of resources and restricts the movement of resources to the right places at the right time The impact of improper procurement practices on society is very serious, as it delays the delivery of basic services and development. The money that could have been used to build schools and hospitals, improve sanitation, and many other infrastructure projects is wasted as a result of ineffective and inefficient procurement and management practices. The objective of the study is to ascertain the extent to which public entities comply with leading procurement practices as identified through literature review. This study focused on public entities. Proper procurement management processes in public entities will lead to better public service delivery, reduction in public resources wastage and increased public wealth. The literature study consist of two components, firstly, the study identified leading procurement practices and procurement objectives in the public sector, secondly, the study further determined leading management practices from two recognised sources of authority to establish the comprehensiveness and robustness of the leading procurement practices. Furthermore, a survey questionnaire was used to determine the extent to which the public entities apply leading procurement practices. Procurement is not just the purchasing of an item but a multifaceted process that includes information technology, risk management, business strategy and operations and legal compliance. All these activities should be coordinated to deliver organisational needs and goals. The procurement function objectives and activities should be directly linked to organisational goals, management plans and stakeholders’ expectations. The leading public procurement objectives, as determined by the literature review, are value for money, ethics and values, competitiveness, transparency, accountability, equitable (unbiased and fair dealing) and preferential procurement. The eight leading procurement practices determined through a literature review are procurement strategy and leadership (which include customer focus), procurement processes and policies, human resource management, procurement information technology, supplier management and procurement performance management. The study made use of questionnaires seeking information on current procurement practices in the public entities. The questionnaire was based on leading practices identified through this study. Respondents were asked to assess the extent to which their public entities apply these leading procurement practices. The three most applied leading procurement practices were indicated as leadership, process management and strategic planning. The study has identified that the public entities possibly apply five out of the eight leading procurement practices to a “lesser extent”, implying that they are being applied but not nearly as often or consistently as best practices would dictate. The study thus indicated that, although some of the leading public procurement practices are applied in the entities under review, these practices are often applied inconsistently and frequently not to the extent that they should be applied. The study thus provided a clear indication that public entities still have a long way to go if they are to achieve the procurement objectives set out for them in terms of the country’s Constitution.

The study explored lack of improvement of public procurement management practices in the public sector. The main themes which the study focused on are the following; causes of non-compliance of public procurement and contracts management procedures, factors influencing the selection of appropriate procurement management processes and the main factors for poor implementation of procurement management processes in the public sector. The study aimed to identify the causes of non-compliance; determine factors influencing selection of appropriate procurement management processes, and lastly examine, the main factors leading to poor implementation of monitoring and evaluation in the public sector. The study employed a qualitative design to investigate the problem using the exploratory method. The purposive sampling method was used to select interviewees from three departments, namely, Department of Local government and Traditional Affairs, Public Works and Office of the Premier with 15 participants as a selective sample of the study. The key findings of this study indicate three main problems which are: that lack of properly understood processes of public procurement leads to poor implementation of the system together with alternative strategies of implementing the system. Shortages of skills and lack of training amongst those who get hired within the supply chain management sections or in the procurement management sections of the departments who have little understanding of holistic public procurement management in general affect selection processes. Findings also indicate lack of adequate monitoring and evaluation on procurement management. The study recommends that people who get hired in the procurement management section of these departments should have proper procurement qualifications. Regulations and rules should be made clear to all those who work in the procurement management sections in the public sector, to enable the improvement of best management practices and also to improve public procurement management practices in the public sector.

The dissertation aims on evaluating of logistic processes at chosen company, which is ITAB Shop Concept CZ, a.s. Based on data analysis, suggestions leading to improvement of logistics related processes are established to secure continuous and economical way of acquiring supplies required for production and sales.