Vendor Management Case Study Example | Topics and Well Written Essays - 5750 words

Vendor Management - Case Study Example In the 90s, Vendors management within the main stream of supply chain management (SCM) gained momentum and received due attention from practitioners and researchers. Beaumont & Comer (2003) refers to procurement as the process in which goods and services necessary for a company's operations are obtained from other organisations. The researcher cautions that organisation should be aware of the fact that purchasing usually constitute between 60-70% of the cost structures of companies. According to David and John (1993P.1), Freight forwarding involves the transfer of goods along cross border, national and international routes, to reach pre-determined destinations (David and John 1993P.1). In other words, Ramsay (2000), argues that It is an intermediary facilitative service between importers and exporters. Freight forwarders take up the responsibility for transfer of goods and utilities between the client and various transport destinations. The transportation of goods, services and utilities between international destinations involves complex legal requirements. A freight forwarding service takes up the duty of meeting all of these legal requirements with relative professional ease. Gau, Lau & Neo (1999) cited in Beaumont & Comer (2003) stipulated that proc... The transportation of goods, services and utilities between international destinations involves complex legal requirements. A freight forwarding service takes up the duty of meeting all of these legal requirements with relative professional ease. Gau, Lau & Neo (1999) cited in Beaumont & Comer (2003) stipulated that procurement is a change of terminology. For freight forwarders are strategic players within the freight forwarding supply chain. They increase the level of customer's service, information sharing, and inventory cost reduction through collaborative relationship or partnerships. Here, Mun (2005) stipulated that, freight forwarding supply chain depends on the level of customer's service which in turn depends on information technology. Thus, through their activities in Singapore, the clients are obviated from the rigours and tension associated with movement of goods to various destinations around the globe. 1.1 Problem Statement Many corporate mission statements set customers as the focus of an organisation's business activities, and key thinkers have defined the quality of goods and services with reference to how well they satisfy needs and expectations of the customer base. At the other end, some companies are paying performance premiums. Mun (2005) in a joint study with Australian logistic association argues that, shippers and multinational companies have changed the nature of logistics by demanding high quality, customised services, quality services from freight forwarding companies in order to meet their special needs (Mun 2005). In the battle for survival, Singapore Freight forwarding companies for example are entering into long term