Are some the new roles of procurement management in the organization, were the procurement managers have to deal with the technological infrastructure essential to smooth the purchasing by fully automating this process or by allowing the main user to process transactions regardless of the participation of the procurement workforces directly. Sch new trends and technologies have their main effects over the procurement rules, pocedures, ad tools, ad also these are altering the management approaches of procurement (Gebauer, e al. ,1998; Seth & Sharma, 1999). Te purpose of this essay to analyze the impact of adopting cutting-edge technology on procurement management, were after reviewing the traditional procurement practices, te new technologies adopted by the procurement section are reviewed and their impact on procurement is evaluated in context of a real case.
Fr more contextualized approach, te essay has focused mainly on the Retail Industry. Taditionally, te role of procurement management was quite different and it only involved the relationship and information flow between the suppliers and the organization. Te main purpose of this traditional perspective of procurement was to the supplier that is offering lowest possible “initial purchasing price”, ad to ensure that supply of merchandise or raw material is made (Spekman, e al.
,1998; Lmmus & Vokurka, 1999). S, i this scenario, te procurement is made with two main objectives of the procurement, lwest quote and delivery, wile later the concept of the supply chain emerges, were the whole chains are associated with this process (Swaminathan & Tayur, 2003). Tis section provides the review of conventional procurement practices used for the purpose of procurement, ad the focal here is the retail industry.
Sekman, e al. 1998) has argued that the traditional procurement typically has features like, “multiple partners; prtner evaluations based on purchase price; cst-based information bases; am’s-length negotiations; frmal short-term contracts; ad centralized purchasing…” (Spekman, e al. ,1998, p This environment of procurement, were there are a greater number of suppliers and only the lowest possible purchase price has to be achieved, mtivates a head to head competition between these suppliers (Bernstein & Federgruen, 2003). Wile the main supposition of such surrounding is that suppliers can be substituted easily and also that...
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