Purchasing or procurement of materials from suppliers is one of the main ingredients of operations management in a business organization. It involves defining the necessary means through which suppliers can create the maximum value possible through product innovation and improvement. The materials acquired should be able to meet the customer needs and satisfaction. Attending to a customer is way of interacting with external and internal contacts. Another important aspect of purchasing of materials is target costing which puts to focus cooperative efforts for regulating the cost of a given product design that is still in the development phase (Hines, 2004). If target costing is carried out in a good way, it can ensure there is competition without destroying supplier coordination in product innovation.There should be control and co-ordination in the functioning of the management. This ensures the achievement of consistency in the company or organization’s goals in an efficient and effective way. An industry can carry out its management functions in numerous ways. One of these ways of ensuring effective management control involves delegating authority to the members of the organization. This involves handing over authority to an employee to acquire resources and perform a given task in the organization. Other management control methods have consistent evaluations, which are used to analyze information in the organization, availability of financial statements that reflect on the overall progress of the organization, performance management and laying out policies and procedures to guide behaviors in the workplace.The management of products and services in an organization should be in a way that enables a smooth flow between suppliers and the customer. There are different approaches used to develop a product or service. These ideas are as stated below:In order to ensure a complete and successful delivery of products to the customers, a product should follow through several stages. The product first has to be verified, developed, produced, distributed, advertised and promoted and finally sold to the prospective buyers.The quality of goods and services must be acceptable to ensure customer satisfaction. These products should also be improved to meet the customer’s requirements and enhance their marketability. Recent advancements in quality, such as re-engineering, Total Quality Management, and benchmarking,
Cooper, M.C., Lambert, D.M. (1997) Supply Chain Management. International Journal of Logistics Management, pp 1-14.
Hines, T. 2004.Supply Chain Strategies: Customer driven and customer focused. Oxford: Elsevier
Heizer, J. & Render, B. (2010). Operations Management.10th Edition, Prentice Hall Publisher: New Jersey
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