Efficient Operational Procedures For Bridgestone Australia Limited’s Procurement Department

1. What are the Regulations, codes of practice and legislative requirements including local and international regulations relevant to transport and Logistics operations and the Australian Dangerous Goods Code where applicable to your organization?
2. What are the relevant OH&S and environmental protection procedures and regulations used in your organization?
3.What are the workplace procedures for the development and maintenance of operational procedures in your enterprises?
4. What are the typical problems that may occur during the development and maintenance of operational procedures and action that can be taken to resolve or report the problems?

Current Operational Procedures in Bridgestone’s Procurement Department

Bridgestone Australia Limited is a manufacturing Company that deals with the production of tires, auto parts and also provision of car services to its customers. The headquarters of Bridgestone Company is located in Japan. There are various operational activities that take place in Bridgestone Australia Limited. All of the departments in the organization work towards achieving the goals and objectives of the organization. The activities in the organization are also carried out to ensure that the performance of the organization is desirable in relation to the key performance indicators. Operational procedures in Bridgestone Australia comprise of different departments which carry out different operations and activities so as to achieve the goals and objectives of the organization. However, the operations procedures in the procurement department or the store area are ineffective (Dean, 2018).

There are several activities that are carried out in the procurement department which controls the store of the organization. The functions in the procurement department, particularly in the store are very critical and have a substantial impact on the performance of the organization. The procurement department in the company deals with identifying the needs of the company and conducting a purchase procedure so as to meet the needs of the organization. There is, however, a great gap that needs to be filled in the procurement process and the store of the organization.  This include failure to specify the needs leading to purchasing wrong commodities, ineffective planning and lack of inspection leading to high cases of delays and effects in the quality of goods that are produced. The aim and objective is therefore to have efficient and effective operations in the company’s store so as to achieve effective operations in the store area and organization's goals. The benefits that will be obtained include delivery of the ordered materials on time thus reducing production delays and purchasing required materials of good quality that meet specific needs in the organization (Dean, 2018). 

Operational procedure involves guidelines that enable workers of the organization to carry out the required organization activities effectively. The procurement department in Bridgestone Australia has its own operational procedures even though it is ineffective. This section will discuss on the strategies for the operational procedures, the outline of the current procurement procedure, the structure flow of the current and changed procedures, consultation process and impact analysis (Beer, 2015).

The operational procedure involves guidelines that enable workers of the store and other areas of the organization to carry out the required organization activities effectively. The procurement department in Bridgestone Australia has its own operational procedures even though it is ineffective. This section will discuss on the strategies for the operational procedures, the outline of the current procurement procedure, the structure flow of the current and changed procedures, consultation process and impact analysis (Beer, 2015). 

Strategies for Efficient Operational Procedures

Operational strategies are set to improve the effectiveness of operations in the organization. One of the strategies for operational procedures is proper management and supervision of workers. The managers and supervisors in various departments should lead by example. In Bridgestone organization, competent team of individuals is given the responsibilities of acting as managers and supervisors of every activity that is being carried out in the company (Heinicke et al, 2015). Despite of the store department to have such managers, its operations are still ineffective. Monitoring the production and other processes in the organization reduces chances of errors to occur. This is necessary for the organization to maintain the quality of the tire products and in achieving the performance and other goals of the company.

The second strategy for the operational procedure in the organization is the implemented policies and regulations that guide every operation in the organization (Beer, 2015). The policies ensure that every activity that is carried out in the company observes the organizational culture of the company. The workers are also guided by the policies of the organization so as to act according to the values of the company. The policies prevent issues of conflicts to arise in various occasions during operations in the store of the company. Policies that have been implemented are also relevant in ensuring that the operations of the company are according to the statutory law. This is important in maintaining the reputation of the company towards the public. The third strategy for operation procedures in Bridgestone Company is effective communication strategies. This involves decision making and how information is transferred in the organization. The managers and leaders of the organization usually involve other stakeholders in making decisions relating to the operations of the organization. The opinions of every stakeholder are put into consideration and this has assisted the organization to prevent issues of resistance to change or cases of errors due to miscommunication (Yoshitomi, 2015).

Identification of the gaps that are present in the store or procurement area of the organization was by factors such as increased costs in the department, inaccurate data storage and analysis, poor management of time and lack of adequate skilled and experienced individuals in the department. In the procurement department, particularly the purchasing process team, there is a lot of expenditure due to cases of budget overruns. This involves purchasing inaccurate and unnecessary materials and equipment in the organization. There have been reported complaints from the suppliers considering missing information or inaccurate data relating to the orders that were purchased by the organization (Rostami et al, 2015). Inappropriate operational process in the procurement department has led to poor planning and therefore leading to delays in obtaining raw materials and other needed equipment in the company. Lack of competent skills among the workers contributes to high cases of mistakes and errors to occur during the purchasing process (Choi et al, 2016).

Identifying Gaps in the Current Procurement Procedures

The objectives of Bridgestone Company include achieving the greatest market share and competitive advantage through the production of products and services that are of good quality. When changes are made in the procurement process of the organization, several gaps will be filled and this will enable the organization to achieve its objectives. Costs due to budget overruns will be reduced; data will be effectively stored and managed to prevent certain issues to arise, The new process will ensure that the organization trains its workers so as to sharpen their skills and reduce errors to occur due to ineffectiveness and time management will also improve relating to ordering and purchasing of the needed materials and equipment for production (McMurray et al, 2014).The research has provided effective descriptions of how the changes can be carried out so as to improve the operation process of the procurement department by coming up with an appropriate process that should be implemented. The proposed changes meet the technological trends in the industry as implementing new technological equipment will prevent issues of loss of data to arise. Introducing new operational processes in the procurement department requires creative and innovative skills so as to achieve the desired goals of having an effective procurement team and processes (Miller et al, 2016).

The current operational process of the store area or the procurement department is comprised of five steps. The first step involves recognizing the needs of the organization. This involves determining the needed equipment and materials for the company's operations. The second is identifying the available suppliers who have favourable prices. The ordered commodities are then purchased at the agreed price and finally, the goods are delivered into the organization (Miller et al, 2016)

The old purchasing process is ineffective as it does not even provide an opportunity for inspection of the delivered goods. In the new operational process of the purchasing team and the store members, the first step is carrying out an internal analysis by the team to identify specific needs of the organization. This is important to prevent issues of budget overruns and unnecessary expenses to arise. The second step involves assessing the market to identify appropriate supplier and gathering supplier information. The third step is selecting the best supplier and negotiating the prices. The next step involves purchasing process. The goods are then delivered into the organization (Venkatesh and Luthra, 2015). After the delivery process, expediting of the delivered goods is carried out to determine if the goods or order have been delivered on required time. The next step that should be followed is inspecting the purchased order and the receipts. This is important in ensuring that the commodities that have been delivered are the ones that were ordered in terms of specifications, quantity and quality. The invoices are approved and payment is made and the final process is ensuring that the records have been properly kept and data stored appropriately. When this operational process is implemented in Bridgestone Company, there will be improved efficiencies in operations and this will improve the quality of products and services. The organization will also be able to achieve its performance objectives through increased profits as a result of improved effectiveness in the activities of the organization (Venkatesh and Luthra, 2015).

Proposed Changes to the Procurement Process

Consulting with the stakeholders is very important before implementing the changes in the organization. This is because it reduces the chances of resistance to change to crop up. It also provides an opportunity for the stakeholders to suggest their opinions that may be very useful in the implementation of the new purchasing process. I would consult with the stakeholders by requesting to have a meeting whereby every stakeholder of Bridgestone Company will be represented. In the meeting, I will address them on the gap that exists due to ineffective procurement and purchasing process in the store area of the organization (Choi et al, 2016). I will then suggest the new process and give out authentic reasons on why it should be implemented. The stakeholders will be free to give out their suggestions and opinions regarding the recommended process. The shareholders are one of the groups that will be consulted as they are highly affected by the performance of the organization through the profits they get. The other stakeholders will be the procurement employees and managers from the team and other departments. This is because they should understand the gap that exists in their work areas and how they should improve on their activities. The stakeholder comprises of the board members of the organization who are responsible for approving the recommended changes (Benjamin, Nisim and Segev, 2015).

In analysing on the impact that the new purchasing process will have on the organization, particularly in the store area, several factors will be considered. One of the factors includes the resources of the organization.  The time resource will be determined in that the period in which delivery of materials is done will be determined. The amount of wastage of the resources will also be analysed. The impact to the staff will be analysed by determining the reactions of the staff members of the organization.  Performance measurement and evaluation will also be used to determine the impact that the change has on the employees of the procurement department. The impact to the finances of the organization will be carried out by determining the costs that have been reduced after implementation of the new changes into the store area (Barbalho et al, 2017).

Financial performance in terms of how costs and expenses have been reduced in the procurement department can also be analysed. The impact can also be analysed by determining the reactions of the customers and other stakeholders towards the changes that have been introduced in the store area of the organization. The introduction of the new operation processes in the purchasing department of Bridgestone organization will be done in phases (Bushek et al, 2015). This is necessary for managing risks. Introducing the change in phases will be effective in determining any possibilities of risk to occurs, errors and mistakes in the new process can also be identified and corrected in the process. A section of the workers in the purchasing and procurement department will be assigned the duty. When the phases indicate that the process is worth it, the purchasing department can then carry out a changeover of the whole process (Parhizkar and Comuzzi, 2017)

Consultation Process with Stakeholders

One of the skills that is required is effective communication skills. This is necessary for working as a team in the purchasing department and the whole organization. Appropriate project management skills are also needed as there are a lot of activities that are usually carried out in the procurement department that need to be managed effectively for effective operations. The skills of being flexible and problem-solving abilities are also important in the procurement department. Procurement individuals should have good analytical skills so as to reduce the chances of errors to occur in the working place. Technical skills are also necessary for the new operational process in the procurement department (Chan, 2016).

Apart from having the skills, the procurement team should also have knowledge that will make them be competent in their work. An individual should have academic knowledge that relates to supply chain management course or procurement. An individual should also be well equipped with information relating to industry regulations (Warby et al, 2015). The policies and regulations can be obtained from the website or newsletters of the company. When the procurement team members fail to adhere to the stipulated regulations, the organization can be fined or sued. Breaches in the processes of the organization can be identified through inspectors from the government or even the customers and auditors of the company (Safa et al, 2017).

An analysis of training needs involves the process of determining a gap that exists between the necessities of training and employee or staff training. In identifying the training needs, certain factors can be put into consideration. One of the factors is comparing the outcome of operations to the desired outcome. If the activities in the store area are not carried out as required, there is a need for training the staff members so as to improve on effectiveness and the outcome of operations. Another factor to be considered is the performance gap (Erdmenger, 2017). Evaluating the skills and competencies of the employees will make it possible to determine the performance gaps in the procurement department. Identifying competencies and skills that can be improved through the training process is also necessary. After conducting a training need analysis among the procurement staff members, the appropriate training program is needed to improve their skills and competencies. In this case, the organization should hire an expert that will be responsible for training the procurement staff members at arranged periods of three times a week. This will make the employees improve their procurement skills leading to effective operations (Nordtomme, 2015).

The procurement staff members will be divided into two groups in that one of the groups will focus on the old process while the other group will participate in the process trial activities. Supervisors will also be among the group that carries out process trial activities so as to monitor the operations that take place. A Few managers, board members and shareholders will participate in the process trial by making observations on how the operations will take place during purchasing of material and equipment. They will then comment on whether the new process should be approved or not (Luzzini et al, 2015).

The new procedure will be introduced to staff members through different communication means. The employees will be given newsletter that contains the changes that have been made in the procurement department. The information will also be available on the website and the newspaper. Effective supervision will be carried out by the department's supervisors who have been trained. CCTV cameras will also be installed for monitoring purposes. The documents of the workplace will be regularly inspected by the managers and performance evaluation will also be done to ensure effective operations (Goh and Eldridge, 2015)

Evaluation is important in determining the impact that the new process has to the procurement department and the organization as a whole. This is through assessment and modification of the new operational processes.

Assessing the effectiveness of the new process will be done by analysing the key performance indicators. The overall performance can be analysed through the books of finance in that if the profits improve, the performance has improved and this indicates that the new process is worth it. The behaviour of the staff members can also be determined by identifying the errors or mistakes that have been done. Improvement in time management is also an indicator of improved performance (Kalpathy et al, 2015). Asking employees to feel an evaluation form after a certain period of time is an effective way of obtaining feedback from employees and considering the areas that need to be improved. The documents will be stored by the managers of the department and only authorised individuals will be allowed to access the documents.  A system of managing the documents will be created to improve documentation control processes (Nelson, 2018).

In case of modifications, the changes will be made by the managers and supervisors of the department and it will then be approved by the leaders of the organization. The changes will be communicated to the employees through the newsletter of the organization and the newspapers and magazines (Heinicke et al, 2015). 

Author:	James Anderson
Approved by:	Philip Grin
Date:	10thSeptember 2018

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