Procurement / Supply Chain management

Procurement / Supply Chain Management
By Student
Course
Tutor
Institution
Date
Procurement / Supply Chain Management
Procurement refers to the process of obtaining goods from an external source through bidding or tendering. The supply chain refers to the groups of individuals involved in delivering goods to the consumer (Lowe & Leiringer, 2007). The supply chain process's effectiveness depends on the type of leadership used by supply chain management. A commercial manager is responsible for facilitating business growth through the identification and utilization of business opportunities. Commercial managers ought to comprehend the personal needs of those they will lead to ensure organizational development (Cobbinah and Agyemang, 2019). The manager's main role is to ensure a smooth running of the logistics process. The supply management process involves effective communication with customers and suppliers and monitoring the procurement process. The Covid 19 pandemic has resulted in changes in the macro and microeconomic factors that influence economic growth. These factors will have a significant impact on the changing role of supply chain managers. The macroeconomic factors include the changes in national productivity and interest rates. The microeconomic factors are consumer purchasing powers and employee perspectives about the work environment. The pandemic has presented opportunities and threats for industries. The opportunities are represented by new business ideas and an increase in consumer demand for certain products. The decline of consumer demand is the main threat facing industries in 2021. The strength of organizations is their ability to utilize resources in minimizing threats and exploiting opportunities (Cobbinah and Agyemang, 2019). The weaknesses refer to the factors that inhibit organizations from exploiting opportunities and enhance threats to the organization. Therefore, this paper will focus on the changing roles of supply chain managers in 2021 in relation to micro and macroeconomic influences. It will also outline the influence that established leadership, management, and contract management theory have on these changing roles (Wamba and Queiroz, 2020).
Selection and Management of Supplies
The selection and management of supplies are one of the supply chain manager roles that have changed a lot in 2021 due to national growth changes. National growth determines the changes in demand for products. The increase or decrease in demand determine the roles of the supply chain managers. In turn, this changes the nature of contracts between the suppliers and the consumers. According to the contact theory, economic factors that facilitate national growth can affect contractual agreements. For instance, if demand is high in the industry for perishable goods, timely delivery is essential. If the wrong products are delivered to the customer, they might lose trust in the company and, in turn, terminate the contract (Dubey et al., 2021). Organizations aim at maintaining as many customers as possible, and therefore, the supply chain manager ought to ensure that the product selection process is run smoothly. The contract management theory has a lot of influence on managers' changing role regarding se...