Question

Provide a brief description of?

i) the organization operations

ii) the procurement funtion

iii)corporate governance of procurement processes

iv) the extent of ICT adoption in their procurement systems

v) the ethics policy

Answer 1

Answer(I) The organization operations:

The organization operations means where all the organizational operations are performed to produce high quality of goods and services very effectively and effeciently by using the raw materials and human resources for achieving the organisational goals and objectives. When raw materials are converted into effective finished goods then the organisation can maximise its profits and this can be done by applying functions of the organisation operations which include planning, organising, staffing, directing, coordinating, and controlling all these are also responsible for managing the process of creating goods and services. Organization operations also include the day to day functioning of the organization with supply chain, marketing, finance and human resources which help in conveincing the clients for the purchase of the goods and services.

Answer (ii) The procurement function :

Procurement process is related with the decision making process which includes the purchase of goods or services at best possible cost by different sources which focuses on quantity, time, location, quality and cost of the products and services are compared which also helps in reducing the risks and benefits the best deals. The procurement function is like biding and tenders released by the companies and the capable companies are able to buy it and it works on agreeing the terms and conditions for getting the tender. Procurement functions are divided into two categories that is direct and indirect procurement. The direct procurement focuses on the materials of finished goods like raw materials and parts of the products, it also includes supply chain process which affects the manufacturing process. The indirect procurement function focuses on non production activities like operations and offices works of the company and many services.This procurement functions mainly works in construction industries and in developing countries.

Answer (iii) Corporate governance of procurement process:In the above point we have discussed the procurement function which includes getting the best business deals at best cost which is conducted through the getting tenders and bidding process and achieving the best business deals very effectively and effeciently for businesses profits and revenues generation. For every function there are some rules and regulations which helps the organisations to safeguard it from any types of fruads and misleading functions. The corporate governance procurement process also include these compliance activities to implement this laws and regulations which is one of the very important actions and responsibilities of the organization. The governance implements the rules for the organisation buying and making decisions of purchases while the compliance team make a check how effective they are following the rules. For effective functioning of the organization there must be consistency in following the proper governance but in some of the organisations these are not taken seriously and they have to suffer and face losses in the business. This corporate governance procurement process should be applied as from the beginning of the purcashe and sales contract then it will be very much beneficial for the organisation.

Answer (iv) The extent of ICT adoption in procurement system: Now at this time of developing and World of Internet and each and every economy and the companies are adopting this Internet based information and communication technologies ICT for performing all types of business activities of procurement process like Internet or e tenders, e marketing, e auction and e catalogue purchasing. This helps in enhancing the performance of the organisation by providing all the details by one click through Internet of information technology system which also helps in supply chain processes. The adoption on ICT have positive innovative impact on the organisation and helps in reduction of cost and helps in reaching the highest targeted customers with best possible goods and services provided the company.

Answer (v) The ethics policy:

The ethical policies are rules and regulations procedures which have to be followed by all the employees of the organisation for performing their duties in best way by applying all the organisational guidelines. An effective ethical policy generates a good working environment and relationships. This ethical policy starts from the top level management which they have to follow the ethical policies then only they can guide or insist their working employees to implement it and follow it. For attracting more customers the companies have to follow the ethical policy.