TASK 11.4 Write about the most interesting use of technology in business operations that you have heard of or know (about 250 words)
TASK 11.5 Make a presentation: Operations management (not less 10 slides)
SELF-STUDY 12
TASK 12.1 Reading
Ex. 1 Read the text about e-procurement then give definitions to underlined words and learn them.
E-procurement means sourcing and purchasing online.
Different suppliers’ offerings are often brought together into a single catalog (BrE catalogue), the customer decides who to buy from, and then the whole transaction process is automated. The software is sophisticated: it allows both sides to negotiate solutions for certain foreseeable scenarios (eg penalties for late delivery).
But the process is not straightforward. First, for a modern manufacturing operation it is rarely a question of a series of one-time purchases from a small number of suppliers all offering a similar product. The supply-chain relationships are much more complex than that.
Second, it’s not just about price. The procurement process also needs to evaluate product availability, supplier responsiveness, service levels, delivery history, and customer-satisfaction ratings. These do not show up on the system so easily and reliably.
Finally, e-procurement has to work for the supplier too. They receive a detailed RFQ (Request for Quotation), but how do they respond in a flexible way? For example:
Can they adjust details of the RFQ and make counteroffers?
Can they make a rush-order surcharge?
Can they offer different products that the customer may not be aware of?
And to build a long-term relationship, can they know the forecast requirements of this potential customer?
The main criticism of e-procurement is related to this last point: that it focuses too much on short-term individual purchases and driving down costs. It works against the development of a long-term relationship with a supplier. Treating your supplier as a partner might bring far greater returns in the long run.
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