Uniform Commercial Code (UCC) is an act which enables uniformity in commercial code, in relation to particular commercial transactions or concerning personal property as well as contracts and documents relating to them. They include commercial papers, sales, credit letters, and deposits in banks, collections, and transfers in bulk, lading bills, and other title documents. Consequently, UCC eliminates regulations in agency acquisition unnecessarily repeated and paraphrases or restates FAR.
It limits these regulations to the necessary guidelines required to implement policies in FAR and the procedures within the agency in question. Model Procurement Code (MPC) involves the statutory formations and guidance in policy for controlling and managing supplies procurement, construction and services, and enhances public satisfaction (Jordan, 2009).
Supply chain management includes optimization and the oversight in acquiring various inputs that necessitates purchasing and conversion of raw materials into finished products. Ideally, such initiatives play a vital role in enhancing the optimization of various outputs in enhancing planning. FAR enhances planning of acquisitions as one has to list down all potential considerations, buying rules, material handling rules as well as transportation of official supplies and equipment rules have to be followed strictly.
The Purchasing and Supply Management Department and the Legal Department have adopted the use of lawyers where the legal experts advise on some complex aspects.
The common legislation undertaken includes interpreting complex legislation, providing guidance as well as advising on precedence and drafting of terms and conditions regarding contracts. They have also to ensure that each state follows its purchasing law rules. Such an example is the state of Mississippi which has rules for purchase figure starting from purchases not exceeding $3500.00 (Jordan, 2009).
The Federal Acquisition Regulations requires that the Federal agencies should influence the acquisitions of the various agencies in fostering markets in order to enhance sustainable materials, technologies, services, and products. Federal agencies are normally required to enhance implementation of high-performance through sustainable construction, repair, renovation, maintenance, and management.
In addition, the organization should consider deconstruction practices that will ensure reliability and efficient distribution of resources. Contractors in the organization will ensure that the agency’s goals are, ultimately, achieved. Each inventory shall contain a complete and accurate record of all controlled substances on hand on the date the inventory is taken, and shall be maintained in written, typewritten, or printed form at the registered location. An inventory taken by use of an oral recording device must be promptly transcribed.
Consequently, manufacturing resource planning (MRP II) incorporates effective planning strategies that enhances planning and distribution of resources. This will ensure effective utilization of resources in the manufacturing company. It looks at operational planning in terms of units as well as financial planning.
In addition, it is capable of answering the questions of “what-if” during the process of simulation, and ensures that the extension that regards closed-loop MRP can be utilized effectively. Purchasing and procurement also denotes a function of, as well as, the responsibility in procuring supplies, materials and services (Johnstone, 2006).
Cost-based pricing only looks at the product cost. This can lead to a decline in sales especially where consumers are not concerned about the price but focus on other aspects such as product design or quality. Market-based pricing always leads to miscalculations especially for firms which have not stayed in that particular market for a long time. The basis of consumer’s value-pricing may be different from the firm’s basis.
For example, the firm could be basing its judgment on quality while consumers look at quality. On the other hand, Life cycle pricing is based on the stage of life cycle of the product. Most consumers are ignorant of this stage and may deem themselves overcharged at some point. Segmented pricing segregates the market or products and prices products differently. This is a limitation when consumers get information from other consumers (Johnstone, 2006).
Customer-driven pricing is a situation where the market forces of demand from customers determines equilibrium prices in the market. In contrary, competition-driven pricing is where entities raise or reduce their prices based on their competitor’s price. This has often led to price games between competing firms.
However, both of these have an effect on the buying organization’s willingness and ability to purchase a good or service. For example, consumers could put their level at a price below the purchase price, leading to that product becoming a cash-cow and its purchase abandoned.
Large companies issue mandates that force compliance and do not offer smaller partners the active role of improving. Supply chain managers exist to solve this problem. As a supply chain manager, one is compelled to keep a constant relationship between suppliers and company.
These professionals are not supposed to reveal confidential information to suppliers. An instance is payment delay information in the cash conversion cycle which could lead to bad firm-supplier relationship in future if revealed. Such is an example of the gate-keeping role of supply and management professionals. Supply chain professionals influence the firm’s decision on purchases and thus indirectly influence the firm as decision-makers on product and supplier selection as well as price acceptance.
References
Johnstone, N. (2006). The Environmental Performance of Public Procurement: Issues of Policy Coherence, London: OECD Publishing
Jordan, D. (2009). Free Course Book for Course 3: Statutory Law and Intelligence 2011, London: Routledge