Procurement Process: Quality Strategy, Procurement Process Methodologies (Essay Sample)

Procurement Process
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Executive summary
The procurement process is important for any organization. It is the one thing that can either build or destroy the organizational reputation. In this discussion, we are going to look at the procurement process and how it is important in the organization. We are going to use the case study of Apple company to determine the importance of procurement. We shall start by looking at the general company performance by determining its location products and the services. The paper will discuss the quality strategies and objectives of the organization. It will discuss the application of the procurement process methodologies and the formality of the program. The success of the application of the procurement methods will be under discussion in this paper. We shall conclude the paper with the summary.
Procurement Process
Apple company is currently the major electronic producer in the world. It is divided into three major departments that facilitate its operation. The three departments include the consumer electronics. The department mainly deals with the production of different kind of electronics including the television, monitors, printers, refrigerator and laundry machine. The other two divisions involve the information technology and mobile communication. The two departments are mainly involved in the production of the network systems, digital cameras, computers and the handhold phones. Apple company also has the department that is crucial that deals with device solutions (Rogerson, 2014). The device solutions department has two other sub-categories that involve display business parts and the semiconductor department. It is this solution device department that we find the various dynamic random access memories, flashes together with the TFT-LCDs. It is one of the largest companies regarding distribution of electronic products all over the world. It also holds the largest market share regarding electronic sales.
Quality strategy
For many years, Apple company has been obtaining there application processors from their main rival Samsung company. The company has been losing millions in terms of revenue because Samsung has been manipulating the price to try and sabotage the Apple products. In other cases the Samsung company has been producing substandard processors that have ended up ruining the reputation of the Apple products. For past few years, the Apple company has been trying to look for other alternatives that will enable it come up with their application processors. Apple company has been focusing in the production of products that tend to focus on the premium market. The company is paying much attention to the quality materials that are used in the making of the phones together with stylish design choices. It is clear that the company is working hard to try and beat the Samsung company in the low end market share. It is also focusing on production of phones that are high-priced by the use of high quality material in their production.
Objectives
The main objective of the Apple company is to establish and maintain the professional standing of members through the development of a code of ethics together with the defining standards of knowledge. Also has the objective of fostering a public that is well informed regarding their opinion on the computation and the different computing machinery. The other objective is to take an interest in the general professional welfare of all the members. The company has the most important objective for the customers that involve producing the best quality products for the customers while purchasing their products (Tunca et al., 2009).
Procurement process methodologies
Obtaining the products and services at a cost that is favorable is the essence of procurement. Procurement is something that can take place on any scale. However, different governments and organizations tend to establish the procurement system. When a company like Apple that is operating on a large scale, having a procurement system plays a bigger role in keeping the competition fair, evaluate the risks and ensures cost efficiency (Kim et al. 2004).
It is critical for a business to set acceptable procurement methods when making their guidelines. The most common method that different companies use is the competitive bidding. Apple company practices the competitive bidding when conducting its procurement process. It sometimes uses the direct contracting. The company does not limit itself to this two method, but it can also do repeat business with an entity that won the previous procurement bids.
Competitive bidding
Competitive bidding is one of the most transparent biddings and procurement method whereby we have different contractors and vendors are invited through advertisement by the company by providing the specifications, scope terms and conditions and also the criteria that will help in evaluating the bids. When Apple company what’s to obtain something from the market, it normally advertise so that different potential contractors can write their proposal and then a panel has to sit down and select the best from the proposals. In most cases, the company uses this method so that they can obtain the services and goods at a cheaper price. It also aims at reducing favoritism as well as stimulating competition. When it uses the open competitive bidding, the bids that are sealed are opened given everyone interested. In the closed bidding, the company opens the bids only on the authorized personnel. The company usually advertises the products and services that they require, and they allow people to apply.
Direct contracting
While people and different organizations prefer the competitive and the open procedures happen to be the preferred way to ensure wide and effective competition, it reaches a point that the cost of following the competitive bidding is high and calls for direct contracting. In most cases, the Apple company normally carries out the cost-benefit analysis to determine whether the process is outweighing the benefits hence the need for flexibility (Kim et al. 2004). Apple company normally uses this method when they think the time they are going to spend in advertising could be put to a more useful way. In most cases, the company uses this method when they have to deal with issues in a more urgent manner, and they feel that the competitive bidding is going to take a lot of time.
Repeat business in procurement
The repeat system procurement method has been gaining popularity over the past few years. Many people prefer to be loyal to one customer and strive to improve that relationship so that they can be able to acquire what they want at a lower price. In most cases, when a service provider realizes you are his loyal customer, they tend to offer a discount for the products that you are purchasing. It also helps in the process of saving time and money. A lot of time is wasted when the company decides to advertise, and the advertisement could take long. Sometimes the competitive bidding takes longer than usual when they decide to start looking at the bid one by one. The idea of repeat business also plays a bigger role in the urgent service requirement as the company can easily contact the service provider and the problem is fixed.
Apple company uses three of these procurement methods to obtain goods and series. The decision to use one of them lies with the person holding the decision right. However, people in the company also have a say in what the management is doing so that they can be able to learn how things happen. The company is always ready to educate and teach their staff the way the company operates so that they can be able to handle the situations when the company promotes them. It is also important to note that the company works hard to ensure that things are going according to plan, and there are no incidences of corruption during the procurement process. Any form of corruption could easily result in the ruining of the company’s reputation. In following the right procedure while using these methods, is critical to avoid the incidences of corruption (Tunca et al., 2009).
Formality of the procurement program