Research Paper on Procurement

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Abstract
Procurement plays an important role in the supply chain management and good procurement management can shorten the production cycle, improve the production efficiency, reduce inventory and strengthen the emergency ability to the market. Nowadays, procurement management has captured the attention of many high-level executives while it is always overlooked by many small-sized businesses.

This research paper will show either similarities or differences or both with the purchase situations we studied in our organizations with the support of three case studies and three research articles. In the first section, we will have a comparative analysis of three academic research papers in terms of literature survey, methodology used for research, and findings and conclusions of the studies. In the second section, we will combine the three case studies and three small business organizations we surveyed in assignment 1 to discuss the implication of the studies.

Key word: procurement, small organization

Introduction
Nowadays, procurement management has captured the attention of many high-level executives while it is always overlooked by many small-sized businesses. This research paper will show either similarities or differences or both with the purchase situations we studied in our organizations with the support of three case studies and three research articles.

In this paper, firstly we will have a comparative analysis of three academic research papers in terms of literature survey, methodology used for research, and findings and conclusions of the studies. Then, we will discuss the implication of the above studies to the selected cases and in all the organizations.

Comparative Analysis
For the purpose to have a more thorough implication and indication to the three real cases, three academic research papers have been selected to be discussed and analyzed comparatively, in terms of literature survey; methodology used for research; and findings and conclusions of the studies. They are: 1) Procurement Risk Management in Hewlett-Packard Company (David Sanghera, Jerry Hwang, Matt Gaskins et al); 2) Supplier Selection and Management System Considering Relationships in Supply Chain Management (Eon-Kyung Lee, Sungdo Ha, Sheung-Kown Kim); 3) Supplier Diversity Corporate Plan (Nigel F. Piercy)

a. Literature survey
“Procurement Risk Management (PRM) in Hewlett-Packard Company” describes HP’s procurement risk management approach and successes to date. In the article, it at first pointed out that HP is confronted with an exponentially growing demand for Flash memory that pushes HP to consider entering into a long-term contract with a major Flash memory supplier. And it is when HP began to launch PRM program to develop and standardize methods to address this risky and imprudent long-term commitment. Follows comes the main body concerning how the PRM is implemented step by step: Establishing The Procurement Risk Management Framework

Completing the picture with setting strategic objectives Adopting forward-looking procurement metrics
Developing the HP Risk suite of PRM software to support the implementation of the risk management process Finally, the eventual PRM business process is demonstrated and its benefits are displayed.

While the HP case discusses the procurement risk management, Supplier Selection and Management System Considering Relationships in Supply Chain Management (SS) are centered about selecting suppliers. It is aimed to suggest a methodology leading to effective supplier management processes utilizing information obtained from the supplier selection processes. For this methodology, the article proposes the supplier selection and management system (SSMS) that includes purchasing strategy system, supplier selection system, and supplier management system, an explains how the SSMS is applied to a real supply chain.

According to the article, generally, supplier selection is a multi-criteria...
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