Purchasing Management Fraser and Neave

Question: Discuss about the Purchasing Management Fraser and Neave. Answer: Fraser and Neave: Purchasing Management Fraser and Neave (FN) is an organization associated with brewing, property development, food and beverages since 1883. Fraser and Neave are well-known among Singapores brands and is one of the oldest organizations (Faeser and neave,1983). The business related to its food and beverage is its most traditional business which has also got international brands licensed. The purchasing manager has certain responsibilities and duties other than placing orders with the vendors and suppliers. Moreover, it is the duty of purchasing manager to look after the relationship building with the people who are behind the scenario of the company but are involved in the purchase related activities. There are four major duties of the purchasing manager such as: contract related duties, the procurements duties, management duties and analytical decisions to be taken. To analyze the purchasing properly one has to be familiar with what is actually going on in the market and what do actually the people desire to have in near future. Deciding all these in a right way is important for a purchasing manager. This process of decision making shall also include the process of finding the problems and making the procedure to be better organized. For this the purchasing procedure is divided among five major categories, with the help of the strategic sourcing of products are as: Discovering the most potential suppliers. Evaluating the suppliers properly. Selection of the suppliers. Development of the suppliers. Managing good relationships with the suppliers. Relating to the purchasing management there are three aspects which shows the effectiveness of purchasing management, done by the purchasing manager. These aspects include factors such as: supplier selection criteria, the purchasing costs included and the effectiveness of information technology for the purchasing and operations management (Kang, 2010). Supplier and selection criteria and related issues: Supplier and selection criteria is the important aspect of purchase management which includes the formation of specific teams for different sectors of the organizations such as the representative for purchasing, handling the quality management, production costs and the engineering of the operations (Kusjanto, 2001). This is called as cross functional type of team representation. Specifically there is a supplier selection criterion which is followed in the following manner: with the products and services that are to be purchased. To handle the quality system of the products or services including the level of sophistication required by the system of the quality. For the selection criterion also the capacity requirements are to be met with the potential of the delivery schedule which is desired. Moreover, the financial stability is to be met. For such the technical help must also be there for the support and hence the willingness to develop the long term relationship along with the customized designed. Fit in the total costs of the deals done with the suppliers this includes the costs related to raw material, the communications methods, all the inventory costs and the costs relating to audit and accounts. Also the suppliers must make a track record for the past changes and improvements for that matter which has taken place. At the end of the financial year taking place, the in all costs relating to the assessments made must be presented in total. The roles and responsibilities of the purchasing manager in the supplier and selection criteria, which is seen in the Faeser and neave are as: that the supplier must be potential enough with respect to the costs, quality and safety, delivery of the products on right time, services, social responsibility, other risks involved, agility and the convenience. These are the qualities of the potential suppliers which helps in the efficient management of the supplier chain in an organization. In reference to a purchasing manager, these are the roles and the responsibilities of him. Moreover, it is depends on their duty on analyzing the recent changes in the demand of the people and in which way the advancements and the recent updates about it are being analyzed on their basis of the collected data. The right decision of the purchasing manager, matters the most, and for the reason it is a must condition for the purchasing manager to know about the recent trends which the market possess and al so the people desire to have. This creates the process in the most efficient and hence as a result the procedure of selecting the supplier becomes more efficient when it comes to the purchasing manager. Purchasing costs Purchasing Costs is basically the gross value of an organization, which is required for the purpose of creating the working capital by the buyers. This purchasing price may also include the debts for which the deductions are to be made to acknowledge the equity share holding of an organization. Also, the buyer make the valuation estimate of the total actual amount which he/she wish to pay is known as the purchasing costs of the products manufactured. These costs may also include the provisions made under the non-cash of the working capital which is left regarding the sustenance for the future revenues further. This is meant by the purchasing costs of the company for the products manufactured. In an organization, when the purchases of any goods or services availed is done then they need to be analyzed also. During this procedure of analyzing the pricing done earlier is also verified. Each of the organization follows its own process for the part of analyzing. The procedure followed by the faeser and neave are defined as follows: Comparison among the competitive bids: this is one of the best measures to authenticate prices of the products or services. It is analyzed if the prices are reasonable or not. This overall is not the analysis for the total prices of the products determined. The lowest of the bids analyzed will not always represent the total costs. The comparison of price quotations: for some circumstances like the comparison of the recent past months, the price quotations with those of the newly determined are compared with the current quotes. This is more useful at the time of critically analyzing the competitive bids. Prices set by the law: when the prices are set by the regulation or the laws, the pricing structure is decided by the procurements made. When such prices are set then there is usually some kind of procurement is used in the pricing. All of these are referenced while the procurement of these items is done. Comparison of the similar items: in the era of competition amongst the similar products or services, it is usually the criteria to compare those products. This is recommended that the missed out specifications shall accompany the comparison among the prices. Comparisons of rough yardsticks: this technique is used when there is rough comparison made between the items which are most similar for example the costs per price test of the samples. Again, there must some of the explanation needs to be given for the analysis. In such a case, the supplier of the products has to give the information about the: Raw material used and their total costs. Total hours of work and labor required. Any special facilities or the tooling proposed. There must be a usage of the scrap. Disposal of the scrap. Also here the negotiations can take place, is the variables are found in this case (Borsuk, 2000). So therefore, it is concluded that the pricing and its costs analysis needs to be done. I recommend that these processes should be done in the efficient way in the organization for being the most successful. Uses of information and communication for the purchasing and operation management in Faeser and Neave Effective communication is important component for the purchasing management. Also the buyer and the supplier relationships are made by the effective uses of communication technologies in the purchase management. The purchasing managers use many of the ways of media to do communication with the suppliers and the buyers. This shall include the phone calls, meeting and discussing face to face, mails, usage of internet and the data which is interchanged electronically (Chan, 1998). Also, the communication depends upon how the transmission of the message is done in an organization. This improves the suppliers and purchasing behaviors. There are also for the purchase management several other media is used too. This for example can be used as the face to face for the purchase management activities. These are also used for purchase which impacts which transmitted electronically. The uses also have the limiting factor as the more of communication can turn out to be controversies in between t he buyers and the suppliers. These are modes used by the communication technology in the buying and purchasing for the purchasing management. Also, the expected benefits to it, includes the reduction in the performances lead-time and the shorter. This may take up less time in the delivery of the products which has the shorter lead-times. These are the uses and the advantages of the communication technology for the organization such as Faeser and neave. Moreover, the communication is essential because it provides the organization with the resources that it needs for the effective and quick communication. They can also use the way of communication as that of the video conferencing, the internal chat rooms which are made inside the organization and emails for the ease of better and effective conduction in the business and the communication. The advantages of communication with these technologies have become easier with no letter and paper sending. With the rapid usage and the adoption of the information and technology, it has been concluded that the organization like Faeser and neave has a bigger guidance over IT. This shall help in the purchasing management and the effective communication too. In addition to it, information technology has led in the gathering of the data which helps in the monitoring and in the sharing of the information. The relations in between supplier and the alliances of the supplier. In the way of the analysis tools for the purchasing management, the IT tools assists with the balance in between the firms which are including the buying process. The whole cost management approaches has to deal with the internal and the external information about the suppliers involved. Therefore, the development and the analysis by the organizations is done with the help of IT tools which are as the project-oriented costs management. Hence, this can be concluded as that in between the buyer and the seller the relationship s has strong influence over information and technology. Also, in case of the new product developments it has its immense influence over information and technology. These are the uses and the role of information technology and the communication in the process of the purchasing and the operations management with the help of their own specific tools meant for it. Faeser and neave being the top most organizations in Singapore strongly influences over it which has helped them build by strong buyer-seller relationships and the effective communication in making the organization bigger and successful. Conclusion Faeser and neave being the leading organizations amongst Singapore, has the objectives achieved with the help of the business strategies followed in the right manner. In addition to it, for the strategies to be effective and the objectives to be established the goals, vision and mission need to be very clear about it. For purchasing management to be more effective and efficient, it is necessary to make a right choice about the supplier selection, supply chain management, the procurement of the purchasing cost analysis and the effective uses of the newest driven information and the technology is to be used for it. Also, it is more important that the generation of value for money is there, as it is the key resource of purchasing management. This makes the goals of the business more strategic, in the purchasing management. It is concluded that in case the offerings according to the lowest costs of the raw materials, the negotiation techniques are also to be matched accordingly. And if t here is the increase strategy, there is a need to continuously evaluate the process and the ongoing deals. This helps in the long term relations with the supplier which shall help and support in negotiating in the supplier and the chain management. This is Faeser and neave purchasing management goals and the strategic management followed. References: Borsuk, R. (2000, June 26). FN attempts to fizz up operations but many want proof it isnt all gas. The Asian Wall Street Journal. Retrieved January 20, 2017. Chan, D. (1998, December 12). FN earnings plunge 74%. The Straits Times. Retrieved January 20, 2017. Cua, G. (1995, April 8). FN to revamp its soft drinks and diary business in Malaysia. Business Times. Retrieved January 20, 2017. Fraser Neave. (1983). 1883-1983, the great years. Singapore: Fraser Neave. 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