Question : Explain how regulation
impacts on the purchasing activities at BRB
Regulation impacts on the purchasing
activities at BRB are followed
Making specification of filter:
For low emission , BRB have to purchase specified filter which is
pass the certification process and ensure air quality of the city .
Select the supplier : for
regulation impacts BRB has to select the supplier who is capable to
supplier the preferred air filter.
Certification : for the
regulation , BRB need certificate for the supplied filter. Withour
certificate , BRB may have to pay £ 200
per day to enter in the low emission zone.
New product innovation: for
regulation and update the service , BRB have to need frequently
modification of digitally recorded commentary in several language and
other high wear parts replaced.
Spot purchase: for maintaining
the regulation and continue the service , BRB need spot purchasing of
a lots of parts and others materials
Cost increasing : for spot
purchasing the spare parts and other materials , cost in increasing
day by day
Time wasting : due to spot
buying and miss communication , BRB received some invoice with out
purchase order , which waste time of both buyer and supplier.
Question : Discuss the benefit to
BRB of Astra purchasing the filters and ensuring their certificate
Financial benefit: without
filter and ensure the certificate , BRB can not continue its business
as a tourist bus company. They have to pay £
200 per day to enter in the low emission zone which may cost a lot.
There fore , Astra purchasing of the filters and ensure certificate ,
BRB are financially benefited.
Enhance profitability : By
ensuring certificate , BRB can provide as sightseeing tours
throughout the capital city using a red open top double -decker bus
which is enhance the profitability of the company.
Environmental benefit : using
filters and ensuring certificate BRB is producing low emissions which
is ensure the air quality of the city. Thus filters and certificate
help to keep the city environment air pollution free.
Business benefit : for the
certificate they can continue the business whithour any service
penalties , So this is a business benefit for BRB
reputation benefit : Purchasing
filters and ensuring certificate BRB can operate the Highly regulated
Tourist bus service in the capital city .this service enhance the
attractiveness of the city and ensure tourist satisfaction which is
a reputation benefit for BRB.
Ensure tourist satisfaction : Using
filters and ensuring the certificate , BRB's vehicle can operate the
service thoughout the city and ensure the satisfaction of the
tourist.
Safe and sustainable bus service : they
are offering safe and sustainable bus service using the filters and
certificate.
Enhance the attractiveness of the
city: BRB's tourist bus service ensure tourist to visit the
important place of the city in a safe and relaxed way which ensure
tourist satisfaction and enhance the attractiveness of the city.
Question : discuss advantage and
disadvantage of BRB of spot buying
Spot Buying : Spot buying is the
practice of buying to meet immediate requirements, rather than for
stock or to meet future demand. Frequent orders are raised at the
prevailing price at the time the order is placed. When a commodity
price is falling, spot buying may minimize total expenditure.
The advantages of a spot buying
A spot purchase may be particularly suited to circumstances where
flexibility of provider is required. Additional potential benefits
include:
Promotes choice and flexibility in
responding to changing needs
Supports the development of more
individualized services and price and enables commissioners to
specify individual outcomes for service users
May allow for closer matching of
resources to individual needs
Represents a low risk purchasing
strategy in striking a balance between other contract options that
are available to commissioners
Provides an environment where it
is easier for commissioners to shift to new supplier
- May present an easier route than other contract options for
new providers to enter the local care sector.
The disadvantage of a spot buying
A significant use of spot contracts is not conducive to care
sector stability. Other potential disadvantages include:
The lack of guarantee offered to
providers can be detrimental to service consistency and continuity;
Insecurity of supply for
commissioning organisations
Lack of security for providers,
which may result in a lack of capital investment
Potentially higher prices arising
from a lack of economies of scale
An inhibition about closer working
relationships between commissioners and providers
Monitoring is difficult in an
environment where there is a high volume of spot contracts
- Spot purchase are deficient as a planning tool
- It is difficult to predict the exact time period and strike
price of the products. This can make it more difficult to achieve
goal for the business. Fortunately, different types of SPOT options
help mitigate this disadvantage.
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