ANALYTICAL REPORT

Analytical Report



Analytical Report

How might purchasing and inventory management policies and procedures differ because the Dealerships purchase different types of service parts and materials (e.g. lubricants versus genuine Parts) from different types of suppliers?

In the light of the research the fact can be stated that there is greater need to change the inventory management policies in order to meet the challenges of this ever evolving world. In case of Viverra Motors there is even greater need to bring a change in the inventory management system since every dealer tend to cater to different set of people which have different interests and seeks different tools in a car. There is a need to inculcate a model which can not only satisfy the needs of dealer but also the suppliers. Before suggesting any model or a framework effective enough to tackle the differences within a system, it is important to realize that today the main issue is to keep up the quick and rapid pace of technological advancements. Growth and change is needed to make a place in saturated markets (Carter & Ellram 1998, p.19).

In the light of the research it can be stated that at Viverra Motors the objective of inventory management has two aspects that contrast: First, is required to minimize inventory investment, since the resources are not used for that purpose. As the Viverra Motors may invest in other projects that otherwise tends to be acceptable could not be financed. On the other hand, it tends to ensure that the company has sufficient inventory to meet demands of the consumers in the areas of its operations. Plus, the inventory management policies are also intended to make sure that the production and sales operations run smoothly. However, in my opinion both aspects of the subject are conflicting, because reducing inventory investment is minimized, but runs the risk of not meeting the demand for the company's operations. However, the large amounts of inventory, decrease the chance of being unable to meet demand and to disrupt the production and sales operations, but also increased the investment in the due course.

However, as far as the purchasing procedures are concerned at the Viverra Motors, the customers are facilitated by Maximizing customer service. Customers at the Viverra Motors are not pushed to buy a product rather they are given the opportunity to make decisions for themselves. For example at the Viverra Motors the customers can compare the products and are fully responsible to take decisions for themselves. Moreover, the Viverra Motors also tends to give huge importance to their purchasing procedures since the involvement and participation of dealers and suppliers is high. This can be done due to the large share of value added they create and the input that they have in product and process development. Fast cycle times interpret into squat lead times while postponement and modular production allows for a dialogue with customers and enable them to deal greatly with the conventional issues (McKenna 2011, ...