Question

In: Operations Management

During the current Corona pandemic situation where most of the businesses are not working, the Government...

  1. During the current Corona pandemic situation where most of the businesses are not working, the Government of Oman has allowed supermarkets to run. If you are a purchase manager of Nesto hypermarket, what procedure do you follow in the purchasing process of inventory, and how does your approach of purchasing change during this Pandemic situation?    

the government allowed supermarkets to operate in light of the spread of the Corona epidemic 19. how will you import your stock of goods in light of this epidemic and how will your new approach to buying be in this situation

Solutions

Expert Solution

The Corona pandemic situation has created a major issue in the supply change management that becomes hurdle at times to fulfill the requirements of the buyers or customers.

There are certain products that are high in demand, but their supply is not sufficient. There will also be cash crush if the buying and stocking prove to be ineffective. The major focus now will be completely on products which are high in demand and of which the selling rate is more than any other product.

As a purchase manager, I will try to understand the products which are being sold at a higher speed. I will use the Pareto's 80-20 Rule where the 80 % sales would be of 20 percent products depending on the recent sales data.

There also might be a situation where an X product is supplied by Z company and Z company has completely shut down its production or reduced its working hours. I will find a company with a fewer sales record that is Y. In this way, the product will be available at a cheaper price and it will anyways be sold due to demand especially goods of daily usage.

OMAN being major importer of vegetables, dairy products, meat, and fruits. I would keep a tab on the suppliers available in the regional, national, or international markets. Rice being the staple food preference it will be in high demand as it is not a regional or national produce. The stocks should majorly include Rice and Other vegetables. Bottled water, packaged meats, and other daily necessity products will be high in demand. The major preference of the inventory stocking will be on these daily use products like cooking oil, beverages, rice, wheat, meat, etc. of all these the major purchase would be on Rice, Meat, and similar products in food supplies. Coming to the other section there would be tremendous demand for sanitation chemicals like sanitizers, masks, gloves, etc. which are majorly imported from other countries.

I will always look at the finance scale which product is creating more value and invest more in the same. This will ensure guaranteed returns and cash flow for the store. this access cash can then be utilized to purchase in-demand but fewer suppliers. I will then contact the big producers and order products on higher volume. This will also advertise among the customers about a store with ample availability of goods, thus attracting more customers.


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