Management Assignment: Making Purchase Arrangements for Goods

Question

Task: Management Assignment Tasks:
1. Choose an area of operations relevant to your job role which may include:

Food operations
Food and Beverage
Housekeeping
Reception
Tourism outlet
Travel services
Event management
Operation/Department: ________________________________
Job role : ________________________________
2. Provide a brief overview of the operational area, the hierarchy of command and the basic procedures in place for sourcing new supplies and suppliers. If you are not working in industry, explain how this applies in your training environment/department.
3. Identify and list 6 different types of goods relevant for your area of operations which need to be purchased in the near future. The products must be selected from the following categories:
• alcoholic or non-alcoholic beverages
• cleaning agents and chemicals
• customer travel products:
luggage labels
travel bags
travel wallets
tickets
vouchers
event supplies

food:
dairy products
dry goods
fresh goods
frozen goods
fruit or vegetables
meat, poultry or seafood

fuel:
aircraft
coaches
hire cars
vessels

• general stores
• housekeeping supplies
• linen
• merchandise
• uniforms

4. List the specific requirements which require the purchase of these goods based on e.g. an upcoming function, banquet sheet, special customer requirements, an event, low stock, reservations or as applicable including the order of urgency for ordering these supplies. Provide details for how you have identified these requirements including consideration of any existing stock you have in storage.

5. Contact the relevant department heads/ supervisor or persons relevant for these product needs and clarify concise specifications and quantities required. Detail with whom you have communicated and what was determined.

6. Which forecasting methods form the basis for calculating the quantities required How is the choice of forecasting method established

7. Identify the stock on hand, list the quantities available and indicate whether these need to be considered in your purchasing order.

8. Determine the price limitations for 3 products you have listed on your purchase list using job costings from your organisation. How does this affect the maximum price you can pay for the purchase of the product Why Are there any processes for this in your workplace or in the RTO What are these

9. Write the purchasing list based on your requirements and the stock on hand.
10. List the suppliers who are used by your establishment to source these products from.
11. Identify the organisational purchasing procedures which form the basis for purchasing goods and sourcing suppliers in your establishment and provide the details for these.
12. Source 2 suppliers (other than those you currently use) in your area or region and obtain information for prices and service provisions for the 6 products you have identified for purchasing in Question 3. (info may be entered in table) – You are required to list your sources of information. 13. Using the table below enter the details for product specifications and prices from your existing supplier and those from your 2 new sources.

14. Analyse and compare the prices and conditions and provide an overview of your findings (given that you would have to make a decision based on the best deal and conditions for supply). For example: a. Prices
b. Prices based on quantities you would require overall (within the total order based on quantities required)
c. Conditions like payment terms and conditions and requirements for purchasing e.g. cash sale or establishing an account etc.
d. Availability of stock

15. Conduct an assessment of the quality of goods for the suppliers of goods identified in Question 14. List the methods you will employ to do this to ensure you will get quality supplies. Your responses need to include reliable processes to ensure quality will be ensured.
16. Take your findings to your trainer or Supervisor and discuss the options for further price negotiations. What has been discussed and determined, and how does this fit in with the requirements established in Question 11
17. Write the purchase order(s) following the analysis and discussion with your trainer and specify the order of priority according to the needs identified in Question 4.

Answer

Assessment 1
1. Operation: Event management
Job role: Manager
2.Event management is a particular process that allows the managers to skillfully think, analyze, and organize events such as private, corporate, and charity. In the event management industry, the management of the company has to wait for certain events or seasonal gatherings where then a team is being set up to oversee the operations of various suppliers, organizers, and the procedures to book a place with respect to all the regulatory measures. Event management helps me to develop proper decision-making skills and managing various departmental heads that require operations and materials management.

3. Six types of goods:
• alcoholic and non-alcoholic beverages,
• event supplies
• hire cars
• cleaning agents and chemicals
• housekeeping supplies
• merchandise

4. Since event management requires operations in various departmental heads, to save on long term-costs, certain goods and services can be bought by the event management organization. The management can aim to purchase alcoholic and non-alcoholic beverages as they are in demand during the occurrence of any event, the event supplies such as furniture was always been freelanced by several third party organizations where often different suppliers were chosen, a proper collaboration with an organization and sponsorships can help to offer the supplies at a lower cost in the long run. Guests who are traveling for events can be received by the event management company by hiring cars as this would serve as a marginal utility amongst the customers. Housekeeping and cleaning agents should be hired by the hospitality department as it will help the business model to have a sustainable outlook and the ownership of merchandise would serve as a marketing program for the event management organization. 5.A caterer has to be contracted where they will supply the essential refreshment, food, and beverages along with alcoholic and non-alcoholic drinks and make sure that such items are reached at the venue right on time. A logistics department has to be contacted that will oversee the proper procurement of merchandises and cleaning agents; this department will schedule the travel arrangements so that the goods which are being supplied reach the venue before or after an event. The hospitality team of the event management organization has to cater to the arrangement of event and housekeeping supplies such as furniture and servers; where the individuals of a particular event, gathering or a party do not face any form of inconvenience. The hospitality department has to be contacted first and must reach the venues before the event and organize the essential supply needs.

6. The forecasting method of input-output analysis is catered towards events management as this analysis helps the managers to analyze the various item requirements based on the usage rate in sectors like industry, transport, and household. The number of participants of an event is taken into account and approximate quantities of supplies are estimated. This method is an effective forecasting technique as it predicts the quantities required based on the current and previous trends or events and how they will yield in the future.

7. The stock on hand- uniforms, general stores, luggage labels
The aforementioned items are already procured by the event management organization where uniforms are provided to the employees and collaborations and purchase orders have already been procured with the general stores and the management of the event management organization. 8. The price limitations are set for alcoholic and non-alcoholic beverages, event supplies, and cleaning agents and chemicals.

The aforementioned three items have been set for price limitations as such items have a flexible price range and if a supplier overcharges such items then such items can be easily obtained from a different supplier. Hence for flexible prices, a limitation has been as it affects the budget set for fixed cost items such as hiring cars, merchandises, and housekeeping supplies.

9. Purchasing list:
• alcoholic and non-alcoholic beverages,
• event supplies
• hire cars
• cleaning agents and chemicals
• housekeeping supplies
• merchandise

10. The list of suppliers is Logistics who will transport the event supplies, merchandises and cleaning agents, hospitality where the department will cater to housekeeping supplies, and caterers who will cater to food and beverages.
11. The event management procedure requires to first analyze the feasibility of the budget and selection of target audiences. The second process requires designing the event where recommendations are posed towards the customers as to what the theme of the events will be according to which the event supplies will be procured. An operations team is allocated that will conduct a site inspection and implement necessary skilled labors to set the theme of the event and finally an evaluation is carried out during and after the event.

12. and 13. Needs to be filled out by the student (6 types of products are outlined in question 3)
14. Decisions based on the prices and the conditions of the supplies, the analysis will be drawn upon the prices based on overall quantities. For small events, the items procured from the suppliers will be supplied at a fixed cost whereas, for big events, orders will be placed in bulks where cash and purchase discounts will be offered.
15. The quality check process of the supplies will have to be carried out through a three-step process. The first step involves setting quality expectations and establishing the standards which are expected by the organization. The second step is quality assurance; which can be assessed by the products supplied by the suppliers and reputable suppliers have quality assurance branding. The final step would be quality control where site inspections and tests will be carried out to ensure that the event will be effective and efficient.

16. It is stated herein management assignment that a proper budget has to be outlined according to the fee that the event management organization charges and the advances they receive. The departmental heads will be responsible for procuring different forms of supplies where the prices are flexible. Since the list of suppliers within the event management industry is huge, negotiations can be carried out regarding the prices according to the quantity of the supplies ordered. Hence a comparative analysis has to be drawn upon the quantity requirements and its price for the average usage time.

17. Order priority:
• Event supplies; the essential supplies such as furniture and restructuring which are required to start an event
• Alcoholic and non-alcoholic beverages; since the demand for such beverages are relatively high in any form of common events.
• Hire cars; to receive guests and transport goods from the suppliers to the venue.
• Cleaning agents and chemicals; the pre, post, and during hospitality services that provide a sense of cleanliness and sanitation within the events.

• Housekeeping supplies; such supplies are basic supplies that are often recommended by the customers.
• Merchandise; accessories that are sold by the management that promotes the brand for positive word of mouth generation.