Hudson Fabricators Inc.
Hudson Fabricators, Inc. had been using the same purchasing method since its foundation in 1976. This old process is very tedious and involves the input of several people. For example, the current process requires the interference of a broker and a long process of bidding and estimation. The problem lies in the determination of whether there exists a better purchasing process that could replace the current operation, with a view to increasing corporate gains.
Sub-Problem Prior to answering the problem, there is a need to make an initial determination as to the necessity of abandoning the current operations in favor of a new one. This would require a balancing of the advantages derived from, and the disadvantages caused by, the current operation. Available Alternative The Internet provides an alternative to the traditional mode of purchasing, through e-procurement (Apicella 47).
Compared to the tedious process used by Hudson Fabricators, Inc. , e-procurement is not frustrating nor time consuming (Apicella 47). It also allows for a reduction in the need to appoint many people, which could only hamper the system instead of facilitate the purchasing process. The Internet is also a cost-effective means of determining the specifications of possible purchases, which could substitute the traditional method of Hudson Fabricators, Inc.
All communications with the supplier, such as the submission of requests and specifications and the approval of quotes, can be executed hassle-free. This likewise dispenses with the need for a broker, whose services also take a toll on corporate funds. Recommendation Considering the advances of technology that paved the way for e-procurement, and the company’s desire to adopt changes that could bring about corporate profit, it is recommended that the company abandon the old method, which requires the interference of many people.
E-procurement will allow the company to purchase directly with the supplier and confer with him effectively about the specific needs of the company. Implementation Implementation of the plan to adopt a new purchasing process would only require the simple expedient of installing an e-procurement software that should be integrated into the company’s existing computer systems.
Apicella, Mario. “The ABCs of enterprise procurement. ” InfoWorld 22. 26 (June 2000): 47-49.Sample Essay of PapersOwl.com