Compare The Objectives Of Electra One Food Industry

PROCUREMENTS OF EXTRA ONE FOOD INDUSTRY

Procurements, which refers to the aspect of raw materials, components parts, and supplies bought from outside organizations to support a company’s operations, is an important activity and closely related to logistics because acquired goods and services must be entered into the supply chain in the exact quantities and at the precise time they are needed. Procurement is important because it costs often range between 60 and 80 percent of an organization’s revenue. Today, the procurement has much more strategic orientation in many organizations, and a contemporary procurement manager of Extra One Food Industry might have responsibility for reducing cycle times, playing an integral role in product development, or generating additional revenues by collaborating with the marketing department.

PROCUREMENT OBJECTIVE FOR EXTRA ONE FOOD INDUSTRY

There are certain objectives of procurement for Extra One Food Industry. First and foremost, procurements objectives must support organizational goals and objective. One of the Extra One Food Industry is to minimal inventory due to produce the frozen food, therefore the procurement probably should not be attempting to minimize total procurement costs. The second objective of this

This steps involves a comparison of expected supplier outcomes to actual supplier outcomes. There are two primary approaches for evaluating suppliers that is the product based and performance based. A process based evaluation is an assessment of the supplier’s service and production process. While the performance based evaluation is about the supplier’s actual performance on a variety of criteria, such as cost, time and quality. Between this approaches, Extra One Food Industry is using the performance base evaluation because they are buying the resources therefore they used this approach to measure the performance of supplier in terms of their products quality and