Purchasing and Resource Management Case Study Example | Topics and Well Written Essays - 2000 words

Purchasing and Resource Management - Case Study Example Spiller of having followed normal purchasing procedures, selecting the appropriate supplier and even in approving the price for this high -intensity x-ray processor. There is no way that Dr. Spiller would have followed the right purchasing procedures without involving Rose Silver who is the manager in -charge of purchasing and from whom the final decisions regarding hospital purchases are expected to come from. Rose is a professional purchaser who ought to be consulted on matters related to purchasing in the whole business organisation. Failure to consult her might lead to a professional blunder and unnecessary misunderstanding amongst the management staff in the organisation a thing that would slow down productivity and overall development of a firm. The exercise of selecting suppliers is a long on and it involves calling for interested suppliers to apply for tenders with the management. It is from these applicants that the most competitive and appropriate supplier is found. The head of radiology department made his purchases decisions in such a hurry that there was no time to compare and choose from a number of suppliers. He seems to have settled on only single supplier who is New Age Radiology Inc. a move that can even compromise with the quality of the equipment supplied. In using method of selecting the right supplier Dr Spiller was supposed to involve the purchasing manager who would have made major contribution in the selection of the most suitable supplier.1As a trained marketing manager Rose has all the knowledge in selecting a better supplier from a given group of applicants. Through contacting a number of suppliers the purchasing manager will be able to come up with the best price for the good quality equipments. Most likely she would not go for the cheapest because the more cheap the equipment is the higher the chances of it being of a poor quality. Again he cannot go for the extremely expensive one so as not to strain the hospitals budget although this does not imply that she will ignore the aspect of quality. There is no justification that Dr. Spiller went through the above process in selecting New Age Radiology as the hospitals major supplies. His, appears to be haste decisions made by someone who was not interested to gather the views of the most appropriate person in the field of purchasing. He went ahead and told Rose that everything was in order and the machine was sold in the prices but he could not explain how this was arrived at. Question Two Dr. Spiller's approach can culminate into immeasurable risk and associated ethical problems. Failing to select a supplier from a wide base of applicants will lead to the sole supplier taking an advantage of monopoly which will end up in poor quality supply of equipment. The supplier may end up supplying a faulty X-ray processor that will not give the required services to the hospital. This will mean extra expenses in the repair of the faulty equipments or purchasing a new one to replace the faulty one if it is beyond repair. A thing that will add up to increased expenditure for the hospital thereby forcing the hospital to realize low profits or even loses. Another risk is on the price which he approved without contacting Rose who was the right person in recommending the best price to pay for the purchased machine. Following the fact that Dr. Spiller is not a specialist in the purchasing field chances are high that might have approved and already overcharged