Supply Chain Case Study
Service Purchasing at the Sunny Hotel
1. What makes the procurement of services different from that of the purchase of goods and materials? The basic difference between the purchase of services and goods is that, the services requires more professional knowledge and experience to evaluate its performance. The goods has a fixed standard which can be measured. Services as a people's business is more complicated to analyze, particularly for supply department. Furthermore, for evaluating and improving the final purpose which is increasing the customer value, letting different function departments to do their experts will also make it easy to get feedback and improve their effective and efficiency. After all, letting the people who did it to improve himself is more reasonable.
2. Define alternative services, or additional ones, that could be purchased by the hotel. The definition of alternative services should follow the company's strategy. In this case, the definition of alternative services can be defined as the services or goods which can increase the company's core competencies. That will lead to the final purpose which is increasing the customer value.
3. Do you think a centralized purchasing department is a logical way to increase purchasing efficiencies? Is it an advantage to have the purchasing department manage service purchases? From one point of view, the essence of management is to balance the contradiction. That is to say, there are some contradictions we cannot solve, and we do not have to solve. I do not agree with letting the purchasing department manage service purchases. On the purchasing department's position, a centralized purchasing department is a logical way to increase purchasing efficiencies. But, on other function departments' position, it may cause the problem. On the company's position, I do not want to take a risk just for a purpose which is reducing the cost, particularly based on this situation. (Our company has already got the
1. What makes the procurement of services different from that of the purchase of goods and materials? The basic difference between the purchase of services and goods is that, the services requires more professional knowledge and experience to evaluate its performance. The goods has a fixed standard which can be measured. Services as a people's business is more complicated to analyze, particularly for supply department. Furthermore, for evaluating and improving the final purpose which is increasing the customer value, letting different function departments to do their experts will also make it easy to get feedback and improve their effective and efficiency. After all, letting the people who did it to improve himself is more reasonable.
2. Define alternative services, or additional ones, that could be purchased by the hotel. The definition of alternative services should follow the company's strategy. In this case, the definition of alternative services can be defined as the services or goods which can increase the company's core competencies. That will lead to the final purpose which is increasing the customer value.
3. Do you think a centralized purchasing department is a logical way to increase purchasing efficiencies? Is it an advantage to have the purchasing department manage service purchases? From one point of view, the essence of management is to balance the contradiction. That is to say, there are some contradictions we cannot solve, and we do not have to solve. I do not agree with letting the purchasing department manage service purchases. On the purchasing department's position, a centralized purchasing department is a logical way to increase purchasing efficiencies. But, on other function departments' position, it may cause the problem. On the company's position, I do not want to take a risk just for a purpose which is reducing the cost, particularly based on this situation. (Our company has already got the