dollar purchase system gives a proficient distributed method of procurement for
the non-respectively lower dollar services and goods here other means such as
Standing Purchase Orders and Corporate Purchasing System are not acceptable
(LGMT, 2018). The low dollar purchase
systems are placed directly with the suppliers, and the invoices received from
suppliers. This procedure reduces cycle
time and the paperwork related with the issuing of purchase orders and purchase
requisitions. Some of the tools that
support the low dollar purchase system include the procurement card system
(P-card), check request, limited cash draft, and credit card systems (Monczka,
Handfield, Giunipero, & Patterson, 2016).
Discuss the advantages and disadvantages of a procurement card system. What is purchasing’s role with P-Card
have remained a vital component in various fields of purchasing since it had
become a standard (LGMT, 2018). Purchasing professionals consider these
advantages and disadvantages of the procurement card systems. Some benefits of the procurement card system
are bolstering the relationship between the suppliers and purchaser. The P-Card might help to reduce the cycle
time for purchasing transactions costs.
The procurement card could provide proper accountability and to render
appropriate control to restrict buying non-authorized items. Some disadvantages are procurement cards not
being used as anticipated. Some might
not use the card due to lack of benefits, such as frequent flier miles. Another downside is lack of data reporting
for tax purposes, and the system cannot identify all card usages (LMGT, 2018).
role of purchasing is to train and administer functions for new
cardholders. They validate all
outstanding cards, track credit limits, and audit cardholder compliance and
activity. They also deal with usage
rebates with the bank.
Describe the main activities that occurred during PPL’s three-phase systems
of the main activities that occurred was the establishment of the
Passport. The passport system was
designed using the Oracle platform by using the external developers (LGMT,
2018). A significant benefit was
reducing the number of service orders with no accountability. The passport
process becomes integrated into the inventory management which led to the
acceptance and installation of the Passport.
What should be Purchasing’s role during the development, implementation, and
continuous use of low dollar purchase systems?
role of Purchasing will primarily involve the maintenance and management of the
low dollar purchase systems. Purchasing
professionals will administer the deployment of low dollar systems that should
include the enhancements and changes.
Maintaining the systems is a critical aspect of the role of purchasing.
What are some of the unique operating requirements that PPL faces that most
companies do not face?
procurement of PPL has lowered its operational costs to succeed in the
intensely competitive market in the deregulated era (LGMT, 2018). This has motivated other in purchasing to
develop process and systems that reduce transactions and the effort needed to
process low-value items. This operation
requirement has helped PPL to minimize the competition since other companies do
not use it.
What might make PPL’s system more efficient and effective in the future?
plans to establish better relationships with suppliers to enable all quality
and inspection work (LGMT, 2018). This
link could enhance the integrated passport system by reducing cost by streamlining
the process of lower value or repetitively ordered items (LMGT, 2018).