In: Finance
a) Many large companies have opted for a hybrid structure to
organize their purchasing
activities. Why would companies choose such a structure?
b) How would you as a corporate purchaser proceed with
developing a sourcing strategy
for transportation services category and ensure that centrally
negotiated (corporate)
frame agreements are used?
Q1: Many large companies have opted for a hybrid structure to
organize their purchasing
activities. Why would companies choose such a structure?
Ans: Hybrid structure of purchasing activities:
- Hybrid structure of procurement adopts a pick and choose approach to sourcing with a central leadership structure supported by local manager with some degree of autonomy.
- It has more advanced technology, communication and working processes make sourcing strategies simpler for company.
- The most effective hybridised structure of sourcing strategy make communication better inside organisation.
- It is very for company to adopt hybrid structure of purchasing activities.
- Cost effective for company.
Q2: How would you as a corporate purchaser proceed with
developing a sourcing strategy
for transportation services category and ensure that centrally
negotiated (corporate)
frame agreements are used?
Ans: - Category segmentation
- Specify business requirment-
- Supply Market analysis.
- Sourcing selection
- Process testing
- Negotiation and contracting
- Transition
All these are centrally negotiated agreement ensured.