buy custom Procurement Process essay

buy custom Procurement Process essay It is widely acknowledged by buyers that reverse auctions have led to significant cost savings for various buying requirements. This can be attributed to the reverse auction tool that inexpensively connects buyers and sellers worldwide and supports competitive bidding while driving the price of an item to its true market value (Monczka, Handfield, Giunipero, 2009). But unlike other procurement methods, the suppliers can review their bids depending on the prices stated by other market suppliers. Procurement refers to a process of obtaining goods and services. It involves the process of preparation and processing of a requisition through to receipt and approval of the invoice to the payment. Its involves purchase planning, standards determination, specifications development, supplier research and selection, value analysis, financing, price negotiation, making the purchase, supply contract administration, inventory control and store , disposals and other related functions (WebFinaance,Inc., 2011). In any regular auctions, there are single sellers and many potential buyers bidding for the item being sold. Reverse auction is used for e-purchasing using the internet (an e-auction) but on the contrary, it involves one buyer and many sellers. Reverse auction are electronic processes where multiple sellers of a product are vying for the business of a single buyer. This results to the price of the products being driven down. Its very important for the reverse auction tool to be well integrated within the strategic sourcing process to harness its full potential. It should therefore have the ability to adapt to new changes in the market, to incorporate financial controls in driving down the costs and in the elimination of waste. It should therefore continue until a pre-established bidding period ends or until no seller is willing to bid any lower, whichever comes first (Monczka, Handfield, Giunipero, 2009). In regular reverse auctions, prices are revealed to all sellers, however, the identity of the competitors remains anonymous. On the other hand, in rank reverse auction, sellers are only told their relative rank and thus are not aware of their competitors prices (Monczka, Handfield, Giunipero, 2009). The general idea is that the buyer specifies what they want to purchase and offers it to many suppliers who do their bidding to be awarded the contracts to supply the goods (OECD). Generally the main purp ose for the reverse auction is to allow the buyer to get the best quality service or product for the company. A typical internet reverse auction is conducted by large national-account end users and the participating suppliers are generally the major producers. The buyer generally issues invitations to suppliers to participate. In most cases, these invitations tend to be sent to the major producers of the service or the product needed. Normally, the purchaser should not specify where the product to be supplied should originate, or should be produced so as to allow as many suppliers as possible and also increase the chances of a best competitive bidding (United States International Trade Commission) Before the purchase of any product or service through the online auction, a price performance measure needs to be conducted first. The most common price performance measure includes actual price versus the planned purchase price comparisons, actual purchase price(s) compared to a market index, comparisons of actual price to actual purchase prices for individual and aggregated items between operating plants or divisions within an organization, and target prices achieved (Monczka, Handfield, Giunipero, 2009). The highly priced law materials are the major products that can be purchased through online auctions. These materials are vital for any manufacturing industries and therefore they have many reliable suppliers all over the world and especially the developed countries. Online auction brings together the buyers and the sellers of different products and services and therefore the company can also identify the suppliers for different ypes and options for the same product based on the background and the general financial position of the company. I addition the manufacturing company uses the machinery that require regular servicing and occasional parts change. Its therefore important for the company to evaluate the products being given in the market and also the benefits accrued on them. For example during the purchase of new machinery then the company should check for the efficiency of the machine, its durability, availability of the parts for the machine or if the company offers any after sale services like installation and maintenance and if so, for how long. The choice of the product should also incorporate the cost of upgrading it if the need arises (in that it should easily adapt to the new technological advances in the global economy). The most important factor to consider while making the choice of the product to purchase through an online auction is the consumer. Normally the consumer dictates what will sell or not and therefore the consumer altitude should be assessed before the purchase of any material intended to be used in the manufacturing company. This is mainly in form of tastes and preferences. Its therefore crucial for any company to do a market research to identify the preferences of its market (the consumer). This way the products being bought over the online auction will have the greatest effect on the final product the company is willing to produce. In this case the research company can be contracted to do the research on the consumer in terms of economic status, tastes and preferences that will guide the online auction process. After the conversion of the requirements or requisitions into purchase orders or contracts, the company needs to decide on which method of procurement to use. There exist several methods of procurement they include: competitive bidding, direct negotiations and single source acquisition. A successful e-auction requires the development of a preauction strategy, which sets goals, targets specific potential partners, and clearly lay out the applicable rules to be followed throughout the process (Pearcy, Glunipero, Wilson, 2007). The list of the suppliers contains companies formally accepted through quality and performance criteria, along with potential suppliers that have been involved in the similar tendering process before. The process of determining the suppliers normally involves the company deciding which contracts are to benefit from the reverse auction procurement and then the suppliers are initially evaluated and invited to participate in the bidding process. During the selection for the participants for online auction, the general company relation with the suppliers should be put first. Suppliers with a long history with the company should be put first and contacted for them to participate in the online auction (Pearcy, Glunipero, Wilson, 2007). This is meant to maintain the relationship status although its generally affected by the reverse auction method of procurement. The selection of the suppliers the reverse auction should not look at the buyer seller relationship though the whole process threatens it. The research suggest the use of a relational approach when using reverse auction for the relationships that are strategically important for the institutions overall outlook and growth in the long term (Monczka, Handfield, Giunipero, 2009). therefore the execution stages of any reverse auction should be independent.in the offer phase of the reverse auction process, rules should be accurately explained to the parties, prior to the con ducting of the actual R/A event .this increases the chances of a successful reverse auction. Lastly the company needs to embrace the emerging technologies in the supply management in the identification and building of the supplier relation. These emerging technologies include the guided buying, advanced supply planning, win-win sourcing optimization, content enabled analytics and knowledge networking among others. Guided buying refers to an e-tool that combines e-purchasing systems with virtual cataalogs, search engines, and web agents to help guide employees to preferred sources of supply and also to preferred sourcing processes and personnel. Advanced supply planning tools provide a linkage from sales and operations plans to supply planning and back again.it also includes translating demand(volumes and variability) upstream across multiple tiers of the supply chain and improves risk analysis, decisions on hedging tactics, and other tradeoff analysis(e.g. make vs. buy, transportation ,inventory). The win-win sourcing optimization techniques and supporting tools allow suppliers to better match their capabilities with those of the buying firm and create more win-win scenarios and fewer win-lose ones. Rather than the using the winner takes all bidding process geared toward price and cost, or having the buyer guess which lots to create for different suppliers. It allows buyers to open up their m arket baskets to suppliers that can then do their own demand management to flexibly bid in order to harness their best capabilities and put their best foot forward (mitchell, 2007). Another tool that may help in the selection and reduction of the risks involved is the content-enabled analytics. The usage of this tool may help the company to do predictive analysis such as price or cost forecasting, profitability planning, and supplier or market risk analysis. Lastly the use of knowledge networking will help in making vital decisions in awarding of the contracts. Knowledge networking refers to the process of using the internet-based collaboration tools and services to better capture and disseminate supply knowledge both internally and externally (mitchell, 2007). After the completion of the bidding process and the supplier have been selected then their level of cooperation should be assessed. This cooperation is important if the supplier will have continued interaction with the buying firm. Normally, the more cooperative the supplier is then, the greater the relationship with the buyer will be and the probability of being awarded another contract will be. This cooperation is greatly affected by the initial cost of the bid. Price is the most controversial element in the reverse auction phenomenon. Researches have strongly supported that relational contract structures are negatively related to the purchase price reductions (Monczka, Handfield, Giunipero, 2009). Institutions pursuing a more market based (bid and buy) approach have made significant savings in their budgets but have also lost on the suppliers relations. Its inevitable for these firms to assess the tradeoff between obtaining lower prices(that may or may not be sustainable) and the opportunity cost of not choosing suppliers that can provide assistance in vital non price related areas (e.g. product design) when addressing and designing their appropriate reverse auction structure. In conclusion, the main role of procurement in a company is to raise the competitiveness of the company in terms of lowering the cost of doing business, improving the inventory control, improvement of the quality and the durability of its products. Reverse auction helps in the provision of the most competitive prices for the products or the services for the companies that embrace it. This is in terms of the purchase prices and after sales services that come with the products bought. Reverse auction have been criticized of simply looking for price reductions without any regard to the existing or future business relation. The fact is that the use of reverse auction reduces the time associated with the supplier selection and the award process. However, this addition time saving will be mitigated by the increased time required to build and maintain relationships (OECD). In addition the use of reverse auction have been in the forefront in the achievements of the strategic cost management, benchmarking, supplier development and most importantly in the reduction of the prices paid for the products and services. The benefits of the reverse auction outweigh the odds for its use. Its therefore important for the companies involved in procurement to consider the use of reverse auction in their procurement process. Buy custom Procurement Process essay

USS Valley Forge (CV-45) in the Korean War

USS Valley Forge (CV-45) in the Korean War USS Valley Forge (CV-45) was the final Essex-class aircraft carrier to enter service with the US Navy. Though intended for use during World War II, the carrier was not completed until late 1946, long after hostilities had ended. Valley Forge was serving in the Far East in 1950 and was the first American fleet carrier to take part in the  Korean War. The vessel saw extensive service during the conflict before being converted to an antisubmarine carrier later in the 1950s. Further change came in 1961 when Valley Forge was modified into an amphibious assault ship. In this role it conducted multiple deployments to Southeast Asia during the early years of the Vietnam War. Decommissioned in 1970, the ship was sold for scrap the following year. A New Design Conceived in the 1920s and 1930s, the US Navys  Lexington- and  Yorktown-class aircraft carriers were intended to fit the tonnage limitations put in place by the  Washington Naval Treaty. This enacted restrictions on the sizes of different types of warships as well as placed a cap on each signatory’s total tonnage. This scheme was re-examined and extended by the London Naval Treaty in 1930. As international tensions increased in the 1930s, Japan and Italy elected to leave the treaty system. With the collapse of the treaty structure, the US Navy moved forward its efforts to design a new, larger class of aircraft carrier and one which used lessons learned from the  Yorktown-class. The new type was wider and longer as well as incorporated a deck-edge elevator system. This had been employed earlier on  USS  Wasp  (CV-7). In addition to carrying a larger air group, the new class possessed a stronger anti-aircraft armament. Work commenced on the lead ship,  USS  Essex  (CV-9), on April 28, 1941. Long-Hull Following the Japanese  attack on Pearl Harbor  and US entry into  World War II, the  Essex-class quickly became the US Navys principal design for fleet carriers. The first four ships after  Essex  used the class initial design. In early 1943, the US Navy elected to make several changes with goal of improving future vessels. The most noticeable of these changes was lengthening the bow to a clipper design which allowed for the inclusion of two quadruple 40 mm mounts. Other alterations saw the addition of improved ventilation and aviation fuel systems, the combat information center moved under the armored deck, a second catapult installed on the flight deck, and the mounting  of an additional fire control director. Referred to as the long-hull  Essex-class or  Ticonderoga-class by some, the US Navy made no distinction between these and the earlier  Essex-class ships. Construction The first vessel to begin construction with the enhanced  Essex-class design was USS  Hancock  (CV-14) which was later re-named  Ticonderoga. This was followed by several additional carriers including USS  Valley Forge  (CV-45).  Named for the location of  General George Washingtons  famed encampment, construction commenced on September 14, 1943, at the Philadelphia Naval Shipyard.   Funding for the carrier was provided by the sale of over $76,000,000 in E Bonds throughout the greater Philadelphia region. The ship entered the water on July 8, 1945, with Mildred Vandergrift, wife of  Battle of Guadalcanal  commander General Archer Vandergrift, serving as sponsor. Work progressed into 1946 and  Valley Forge  entered commission on November 3, 1946, with Captain John W. Harris in command. The ship was the last  Essex-class carrier to join to the fleet. USS Valley Forge (CV-45) - Overview: Nation:  United StatesType:  Aircraft CarrierShipyard:  Philadelphia Naval ShipyardLaid Down:  September 14,1943Launched:  July 8, 1945Commissioned:  November 3, 1946Fate:  Sold for scrap, 1971 Specifications: Displacement:  27,100 tonsLength:  888 ft.Beam:  93 ft. (waterline)Draft:  28 ft., 7 in.Propulsion:  8 Ãâ€" boilers, 4 Ãâ€" Westinghouse geared steam turbines, 4 Ãâ€" shaftsSpeed:  33 knotsComplement:  3,448 men Armament: 4 Ãâ€" twin 5 inch 38 caliber guns4 Ãâ€" single 5 inch 38 caliber guns8 Ãâ€" quadruple 40 mm 56 caliber guns46 Ãâ€" single 20 mm 78 caliber guns Aircraft: 90-100 aircraft Early Service Completing fitting out, Valley Forge landed Air Group 5 in January 1947 with a F4U Corsair flown by Commander H. H. Hirshey making the first landing on the ship.  Departing port, the carrier conducted its shakedown cruise in the Caribbean with stops at Guantanamo Bay and the Panama Canal. Returning to Philadelphia, Valley Forge underwent a brief overhaul before sailing for the Pacific. Transiting the Panama Canal, the carrier arrived at San Diego on August 14 and formally joined the US Pacific Fleet. Sailing west that fall, Valley Forge took part in exercises near Pearl Harbor, before steaming to Australia and Hong Kong. Moving north to Tsingtao, China, the carrier received orders to return home via the Atlantic which would permit it to make an around the world voyage. Following stops in Hong Kong, Manila, Singapore, and Trincomalee, Valley Forge entered the Persian Gulf for a goodwill stop at Ras Tanura, Saudi Arabia. Rounding the Arabian Peninsula, the carrier became the longest ship to transit the Suez Canal. Moving through the Mediterranean, Valley Forge called at Bergen, Norway and Portsmouth, UK before returning home to New York. In July 1948, the carrier replaced its complement of aircraft and received the new Douglas A-1 Skyraider and the Grumman F9F Panther jet fighter. Ordered to the Far East in early 1950, Valley Forge was in port at Hong Kong on June 25 when the Korean War commenced. Korean War Three days after the start of the war, Valley Forge became flagship of the US Seventh Fleet and served as the core of Task Force 77.  Having provisioned at Subic Bay in the Philippines, the carrier rendezvoused with ships from the Royal Navy, including the carrier HMS Triumph, and commenced strikes against North Korean forces on July 3. These initial operations saw Valley Forges F9F Panthers down two enemy Yak-9s. As the conflict progressed, the carrier provided support for General Douglas MacArthurs landings at Inchon in September.  Valley Forges aircraft continued to pound North Korean positions until November 19, when, after over 5,000 sorties had been flown, the carrier was withdrawn and ordered to the West Coast.    Reaching the United States, Valley Forges stay proved brief as the Chinese entry into the war in December required the carrier to immediately return to the war zone.  Rejoining TF 77 on December 22, planes from the carrier entered the fray the next day. Continuing operations for the next three months, Valley Forge aided United Nations forces in halting the Chinese offensive. On March 29, 1951, the carrier again departed for San Diego. Reaching home, it was then directed north to Puget Sound Naval Shipyard for a much needed overhaul. This was completed that summer and after embarking Air Group 1, Valley Forge sailed for Korea. The first US carrier to make three deployments to the war zone, Valley Forge resumed launching combat sorties on December 11.  These were largely focused on  railway interdiction and saw the carriers planes repeatedly strike at Communist supply lines. Briefly returning to San Diego that summer, Valley Forge commenced its fourth combat tour in October 1952. Continuing to attack Communist supply depots and infrastructure, the carrier remained off the Korean coast until the final weeks of the war. Steaming for San Diego, Valley Forge underwent an overhaul and was transferred to the US Atlantic Fleet. New Roles With this shift, Valley Forge was re-designated as an anti-submarine warfare carrier (CVS-45).  Refitted for this duty at Norfolk, the carrier commenced service in its new role in January 1954.  Three years later, Valley Forge executed the US Navys first ship-based aerial envelopment exercise when its landing party was shuttled to and from a landing zone at Guantanamo Bay using only helicopters. A year later, the carrier became flagship of Rear Admiral John S. Thachs Task Group Alpha which focused on perfecting tactics and equipment for dealing with enemy submarines.   In early 1959, Valley Forge sustained damage from heavy seas and steamed to New York Naval Shipyard for repairs.  To expedite the work, a large section of flight deck was transferred from the inactive USS Franklin (CV-13) and transferred to Valley Forge. Returning to service, Valley Forge participated in the Operation Skyhook testing in 1959 which saw it launch balloons to measure cosmic rays. December 1960 saw the carrier recover the Mercury-Redstone 1A capsule for NASA as well as provide assistance to the crew of SS Pine Ridge which split in two off the coast of Cape Hatteras.   Steaming north, Valley Forge arrived at Norfolk on March 6, 1961 to undergo conversion into an amphibious assault ship (LPH-8). Rejoining the fleet that summer,  the ship commenced training in the Caribbean before embarking its complement of helicopters and joining the US Atlantic Fleets ready amphibious force. That October, Valley Forge operated off the Dominican Republic with orders to aid American citizens during a period of unrest on the island. Vietnam Directed to join the US Pacific Fleet in early 1962, Valley Forge airlifted its Marines into Laos in May to aid in thwarting a Communist takeover of the country.  Withdrawing these troops in July, it remained in the Far East until the end of the year when it sailed for the West Coast. Following a modernization overhaul at Long Beach, Valley Forge made another Western Pacific deployment in 1964 during which it won a Battle Effectiveness Award. Following the Gulf of Tonkin Incident in August, the ship moved closer to the Vietnamese coast and remained in the area into the fall. As the United States escalated its involvement in the Vietnam War, Valley Forge began ferrying helicopters and troops to Okinawa before making a deployment to the South China Sea. Taking up station in the fall of 1965, Valley Forges Marines participated in Operations Dagger Thrust and Harvest Moon before playing a role in Operation Double Eagle in early 1966.  After brief overhaul following these operations, the ship returned to Vietnam and assumed a position off Da Nang. Sent back to the United States in late 1966, Valley Forge spent part of early 1967 in the yard before commencing training exercises on the West Coast. Steaming west in November, the ship arrived in Southeast Asia and landed its troops as part of Operation Fortress Ridge. This saw them conduct search and destroy missions just south of the Demilitarized Zone. These activities were followed by Operation Badger Tooth near Quang Tri before Valley Forge shifted to a new station off Dong Hoi. From this position, it participated in Operation Badger Catch and supported the Cua Viet Combat Base.   Final Deployments The early months of 1968 continued to see Valley Forges forces take part in operations such as Badger Catch I and III as well as serve as an emergency landing platform for US Marine helicopters whose bases were under attack.  After continued service in June and July, the ship transferred its Marines and helicopters to USS Tripoli (LPH-10) and sailed for home. Receiving an overhaul, Valley Forge commenced five months of training before ferrying a load of helicopters to Vietnam. Arriving in the region, its forces took part in Operation Defiant Measure on March 6, 1969. With the conclusion of that mission, Valley Forge continued to steam off Da Nang as its Marines conducted a variety duties. Following training off Okinawa in June, Valley Forge arrived back off the northern coast of South Vietnam and launched Operation Brave Armada on July 24. With its Marines fighting in Quang Ngai Province, the ship remained on station and provided support. With the conclusion of the operation on August 7, Valley Forge debarked its Marines at Da Nang and departed for port calls at Okinawa and Hong Kong. On August 22, the ship learned that it would be deactivated following its deployment. After a brief stop at Da Nang to load equipment, Valley Forge touched at Yokosuka, Japan before sailing for the United States. Arriving at Long Beach on September 22, Valley Forge was decommissioned on January 15, 1970. Though some efforts were made to preserve the ship as a museum, they failed and Valley Forge was sold for scrap on October 29, 1971.