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Introduction:

As a professor of medicine, it is important to assign tasks that encourage critical thinking and real-world application of concepts. The following answer provides a response to the article review assignment for a hypothetical medical college student.

Answer:

The article highlights four best practices that can be implemented to enhance the effectiveness of purchasing operations in organizations. Below is an explanation of how an organization I am familiar with can implement these best practices:

Identification of spend types in your purchasing:

The first step towards efficient purchasing is to identify all the spending categories of the organization. It is essential to track spending patterns in each category to identify potential cost savings and eliminate redundancies. By using data analytics and procurement software tools, our organization can conduct detailed spend analysis and identify the areas that need improvement. This approach will help the organization to develop better sourcing strategies and create contracts that align with its spending objectives.

Identify suppliers with capabilities for global business:

In today’s globalized business environment, it is crucial to identify suppliers that have the ability to support our organization’s needs beyond borders. Our organization can achieve this by utilizing supplier databases, industry reports, and a procurement team with global experience to identify suitable suppliers. Furthermore, the organization can leverage technology, such as video conferencing and other communication platforms, to coordinate with international suppliers seamlessly.

Strategy of integrated supply approach with distributors:

Our organization can adopt an integrated supply approach that involves close collaboration with distributors. This strategy aims to streamline the supply chain and reduce operating costs by minimizing inventories and enhancing delivery services. It will also simplify the procurement process by consolidating the number of suppliers. Through this approach, our organization can improve its efficiency, reduce procurement time, and negotiate better deals with suppliers.

Processes to track performance of suppliers including cost of ownership and outsourcing:

The final step in improving purchasing performance is to track supplier performance continuously. Our organization can use supplier performance metrics such as cost of ownership and outsourcing to evaluate supplier performance. The organization can also develop supplier scorecards to assess supplier performance relative to critical performance indicators. Tracking supplier performance will help the organization identify issues and opportunities, and adjust its sourcing strategies accordingly.

Conclusion:

In conclusion, implementing the best practices outlined in the article can help organizations improve their purchasing performance, reduce costs, and improve supplier relationships. By identifying spend types, sourcing globally, adopting an integrated supply approach, and tracking supplier performance, organizations can optimize their procurement processes.