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Cathay Pacific Airways Assignment-2 Questions
Cathay Pacific Airways Assignment-2 Questions
1.What are the benefits of the e-procurement systems for the Airlines Purchasing Department?
Amongst all benefits some of the top benefits for e-procurement for the airline purchasing
department are:
There would be better information about spending that could be catalogued and there would
be an enhanced criteria and presentation of data that would allow us to select better
suppliers. Since the supplier information is successfully structurally managed the process
would increase in efficiency as the accuracy increase
Efficient process of sourcing would allow us to increase value and allow us to meet individual
and department wise requirement that will also be accessible
Enhanced visibility in the market along with better management of price both purchase &
procurement and the exact management time as there would be a real time management of
information this will improve how ordering can improve as the cycle time and management
improves
2. Mention the concerns of key managers in Cathay Pacific regarding the e-procurement system
implementation?
Money
o The decrease in the administration cost will allow strategic financial management and
diversion towards more important task
o Strong negotiation relationship with suppliers will allow a balanced distribution of
power
o Similarly allowing the employees to focus on strategic activities rather than redundant
one will create strong revenue opportunities
Time
o Streamlined information process and activities will allow better and improved
information management
o Cutting back on cheque cycle time
o Adherence to policies, indexes and contracts will improve organisational and external
compliance
Streamline all the departments with decentralising along with the process and automate all
redundant tasks such as requisition and procuring processes
Centralisation of budget and optimal allocation while collaborating with different department
heads
The two strategies will allow to reduce administration cost and allow the system to work
efficiently
Streaming the compliance operation between supplier with contracts, reducing the amount
of time for cheque cycles and organising policies over spending limit and indexes will allow
better will allow better supplier relationship
Creating and adopting new systems can allow more employees to not focus on redundant
activities but will allow them to pursue important and strategic tasks