Boeing Australia Limited, BAL employs various procurement processes, which have some limitations. The financial aspect of the procurement process is limited by the financial availability as well as its dispensation by the management. It also limits the objectives attainment. The four divisions on the overall basis cannot sustain the industry’s demands apart from the basic solutions they provide like the communication, command control, support, and technical delivery. The financial outlay of enhancing the procurement process increases the budget towards the modification process as deemed fit by the customers, suppliers, and the management watch on competition. Increased growth with profitable future requires the added financial ability of BAL as it affects the process of procurement on acquisition of the company’s repair, operational supplies and delivered services to the customers. The limitation is also responsible for the effective management and strategic decision-making processes.
In the management limitation of the procurement process, the leveraging ability of buying the parent company has reduced its effectiveness. Any of the management’s requirement into obtaining the licenses or military use, has to have an authentication from the United States Department of Commerce. The company cannot carry out the jurisdiction on its own and as such, the procurement process is hampered. The limitation translated into the delay of effecting changes within acquisition of the required services and products. In turn, the customer needs and those of suppliers have to be scaled back, waiting on the decision-making process. Similarly, approval for the discretion is delayed with the stamp obtained from the government accreditation. Certain suppliers are then quick to follow different recommendations and thus minimizing the effective ability for productivity within the procurement process as an overall oversight.
Another limitation affecting BAL procurement process is the supplier relationships with the management of the company. The company has included a large variety of the services from different suppliers. The resultant process affects the effectiveness of procurement within the system. Each supplier has a different strategy as well as methodologies with response and transactions with the company. The above affects the ease of measuring performance of each strategic procurement process, for the company’s deliveries, services, and products. Consistency is not achieved in response to the different methodologies employed. As such, the translated exchange towards the customers produces mixed results in both short term and long-term analysis. In addition, there is no accentuated value from the suppliers to the customers. Further business within the procurement processes are not properly monitored within the systems. Further achieved of the company’s goals becomes difficult with extended periods.
The fourth limitation within BAL Company’s procurement process is the traceability of the transactions in its current state. It starts from the rationalization needs of the suppliers. Internal research in the organization points to the difficulty of achieving an assured system of tracing the supplier selection within the operations. The different suppliers acquired by the company have different qualities as well as the varied parts, which are necessary for operations. Therefore, procurement is delayed in analysis of the tracing establishments as means of verifying the authorization of the suppliers and their authenticity. Obtaining a different alternative to the accreditation increases the limitation of traceability. Certain purchases are recommended by the commonwealth, in light of the industry requirements. However, with the procurement process at BAL, diversity and integrated attributes are not met easily as the flyaway category decreases the system’s effectiveness.
E-procurement strategies can manage customers, suppliers, and internal organization in an effective manner. For the suppliers, E-procurement strategies can be used for the effective decision-making ability on the preferred candidates with the quality of service, products, and delivery concerns. E-procurement strategies can enhance the supplier management relationship with the effect of facilitating reverse auction with BAL Company. It determines the supplier authenticity and authorization with added impetus on the timeliness and overall returns based on the contractual agreement (Williams 2009, p. 19). The suppliers on the other hand will benefit from the streamlined reliance of the company’s effective management of the procurement process as traceability of their actions is guaranteed. It generates the official reverse auctions achievements with the suppliers, as witnessed in the United States. It also measures respective advantages and disadvantages of each procurement process, for better decision-making in the short and long-term.
E-procurement strategies can also be effective in the management of the customers through the application capabilities it signifies with the use. For example, the e-procurement availability can be instrumental in reducing the time used for purchasing of the products and service delivery. It is more astute as it delivers on the online enhancement. Another aspect is the limitation of any chances of fraud, error, and reversal auction according to the customer preferences. The e-procurement manages the internal systems of the company’s streamlining processes. There is reliance with a given window on using the credit cards as well as automation principle in the transaction (Baily 2008, p. 22). In the case of any mishaps, the e-procurement availability is able to detect and enable feedback as soon as possible. It increases reliability and trust relationships with the company. Similarly, improvements can also be extracted from the consumers according to their preferences.
The internal organization of Boeing Australia Limited, BAL can be managed through effective application of E-procurement strategies. Internal organization requires the alignment of the structures, service delivery, automation, and overall monitoring process. Internal organization affects the operations such as purchases, spend analysis, sourcing, costs of acquisition, tender notification, and selection in the planning. By using the strategy, it helps drive the cost of operations to a minimal. Part of the workforce will not be required in the structural levels as well as feedback from the services. According to Booth (2010, p.17 issues of timeliness and accuracy will also be eradicated with the strategy as it configures a streamlined automation process for effective management. The translated results will ensure that the decision-making process is swift with accreditation by respective authorities in time. Leveraging of the necessary bargaining power will also be in place especially with the handling of better prices to the company’s benefit.
When considering issues regarding upgrading of a company’s technology platform, several factors have to be analyzed. The first issue has to be the financial benefit to the company. Technological advancement has to incorporate the issues of cost, time, and effective improvement to the internal organization’s structures of management and overall performance (Andreasen 2010, p.3). It requires the robust approach by utilizing the latest and available enhancement to increase the platform. All the above measures have to include increased overall costs, to the company. In the analysis, the benefit has to outweigh the cost used. In most cases, the short-term view is put in perspective against the long-term scope of the company. The structure and nature of the financial cost is then used as a parameter to gauge the applicable alternatives before enhancing the platform. Any expansion requires equivalent financial outlay.
Another issue to consider when upgrading a company’s technology platform is the reliance of the application and strategy to the overall performance ability. When technological advancement or upgrade is sought, the acquired automation is only perceived as helpful. It does not take into account the effect it has on the reliance by the customers, suppliers, and varied shareholders. For example, the user interfaces within the technological advancement provide for feedback to the users. They can be either negative or positive. In turn, the reliance from the customers, suppliers, and stakeholders within the company should provide for the affirmative action as they determine the eligibility. It is coincidental with the environment and background setting of the company. According to Booth (2010, p.17) it should not be viewed as a requirement for a single aspect of the procurement process within the organization’s demands.
Technological platform upgrading has to consider the issue of security of the overall company’s operations. The rapid expansion of technology and information in the corporate world is at an unprecedented level. Several innovations and exquisite applications are being tested and used with effective results on a daily basis. The challenge that rests with the technological platform is security. Due to the online environment and setting, majority of the technological applications are not fortified and secure from threats and attacks. Instances of virus, worms, hacking, and industrial espionages are on the rise due to the ease of access and generation of deceptive covers. A company has to ensure that the security of the platform deters any form of malpractice, breach, and fraudulent dealings as it risks paralyzing all the internal logistics and operations. In addition, the consequences can amount to severe damages and loses to all the stakeholders.
The ability to manage and maintain the technological upgrading of a company’s platform is also considers before its deployment. Once the upgrade is instituted into the company’s operations, constant analysis, monitoring and management is required due to the nature of changes brought about. In terms of procurement, management and maintenance affects issues like the overall placing of customer and supplier interests within the organization. If the system does not benefit on the timeliness, accuracy, reliance, security, and improved performance of the process, the shareholders can withdraw from the company. It requires sophisticated approach and levelheaded management of the process to ensure that the upgrade is devoid of errors.
The life cycle of the technological platform upgrading is worth considering for a company. The robust nature of technological delivery and execution ensures that different solutions are obtained towards solving various problems at a faster rate. In the same process, the longevity of any enhancement is determined by its cycle of implementation, use, analysis, overall performance, and effective determination (Baily 2008, p. 22). In the same category, financial outlay is required in the above process. Therefore, a company cannot indulge in hanging the technological platform of its organization at a frequent rate, as it requires higher costs, and time for its effective implementation. Other factors include training and changing the setup of the organization once the new platform has been acquired. An assured technological enhancement, which cannot be phased out at a faster rate is thus sought after, for long-term benefits.
The size of a company is important when considering an e-procurement strategy. The size affects the technological, organizational, and operational aspects of a company. The size of the company determines the extent of operational ability as regards the products, and services. A large company requires increased workforce to effect the operations at a regular level for overall productivity. Once a technological strategy is sought, the size determines the robustness and support of the platform it has to the company as a whole. A smaller company will require lesser use of resources to effect the strategy changes since the ability to monitor the effect is higher and accurate as opposed to a larger one. Similarly, a smaller size of the company offers a sense of security with the strategy used due to the reliance from the time of implementation and application to the operations.
size of a company is necessary for determining the financial cost on potential
gain or losses from a considered e-procurement strategy. After feasibility
studies are conducted on the effective strategy to be used, various resources
are put in place to ensure that is succeeds in addressing the issues raised. This
includes finances, time, expertise, and reliance. Once the strategy is
utilized, the returns are outweighed against the benefits. For smaller
companies, there is security that incase the strategy used does not succeed in
effective change as required, the financial costs and resource input are
minimal as compared to a larger company (Williams 2009, p. 19). In the latter’s
case, issues of management decisions, shareholder interests, and overall
approvals are brought to the fore for review and action. Therefore, due to the
size, increased time and analysis is considered carefully due to the repercussions.
Baily, P, J, H 2008, Procurement principles and management, Harlow, England, Prentice Hall Financial Times.
Williams, K 2009, Strategic management, New York, N.Y, DK Pub.
Booth, C 2010, Strategic procurement organizing suppliers, and supply chains for competitive advantage, London, Kogan Page.
Andreasen, P, H 2010, The theory of procurement management, Open Archives Journal, 2, 3, 1-5.
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