Question

QUESTION FOUR [30]

Project supply chain management is a set of proactive responses to many challenges created by people from different organisations working together on projects. The project organisation may start with assessing the need to outsource part of the project work. Contracting is commonly used to specify and manage supplier-buyer relationships.

With reference to this:

4.1 Discuss the enablers of the purchasing and supply chain functions related to a project. (16)

4.2 Discuss the supplier evaluation and selection process. (14)

Answer 1

enablers of the purchasing and supply chain function related to a project.

project - outsource part of project work

outsourcing- with reference to the above case discussed, it contracts the work out i.e depends on externalities for successful management.

outsourcing relationship management- it is that way of managing one or more externalities that help in an outsourcing project.

related to outsourcing project work as discussed above four enablers are related to externalities which are as follows-

• information technology - it is a peripheral element that is required to maintain organization function. it saves cost, time.
• services- in outsourcing services played a very crucial role and it depends on both externalities and internalities of organization. if internalities provide data, goods on time to externalities than the only product produced is cost and time effective.
• design technique- it should be so suited to a task that it enhances our product, services, and impact on delivery in terms of cost and flexibility.
• innovative ideas- producing technology that will able our clients to thrive and perform better.

discuss supplier evaluation and selection process-

supplier selection process- based on product characteristics which are to be outsourced. it involves basically two major areas on which selection based-

• technological innovative mind- technology-driven supplier provides great outsourcing services. because of innovative minds, they can challenge situations and mold services and products as per the need of an organization.
• ethical awareness- as company value and code of conduct also kept in mind while outsourcing awareness towards intellectual property rights and external and internal threats.

supplier evaluation process- it takes a quantitative assessment, which monitor performance for the purpose of ensuring contract compliance and mitigating risk. it is needed as it reduce supply chain costs. it is evaluated by following -

• competency- how competent is a supplier as per market demand or scenario.
• consistency - approach should be consistent.
• commitments- commitment towards work or project which is evaluated.
• control- control on behavior and knowledge as to when and how should be kept in mind before applying.

some quantitative techniques also used in both evaluating and selecting supplier which are as follows-

• MCDM techniques
• statistical approach
• artificial intelligence
• mathematical programming