Acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place and from the right source for the direct benefit or use of corporations. Information Gathering: Searching for a supplier who offers the good or service a business requires. Background Review: References for product/service quality are consulted, and any requirements for follow-up services including installation, maintenance, and warranty are investigated.
Negotiation: Negotiations are undertaken, and price, availability, and customization possibilities are established. Renewal: When the good requires to be replaced or the service has been used, the contract expires, or the product or service is to be re-ordered. This creates loyalty between an organization and its supplier. Logistics, Deliveries Responsibilities Aims
the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers To plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements. Sub-Contracting
Responsibilities Aims Attracting other firms, to perform activities the company regards are of low importance or feels a specialist company would be more efficient at completing. To keep the sub-contracted companies happy in order to secure a dedicated external workforce. Interdependence: Scenario: Strike by baggage handlers, would involve the operation due to the management being required to attempt discuss the baggage handlers views and demands.
The human resources because they are required to reason with the employees, in order to find a compromise over their requests and finances due to the baggage handlers requests likely to being revolved around pay rates and the finances must calculate whether they company can afford to meet the employees demands. Rise in fuel prices, all department would be involved with this and would all depend on one another to find a method of ‘cutting back’ on some resources within some department in order to financially counteract the increase BAA will be forced to pay for fuel.