BSBADM311: You Work As The Purchasing Officer or A Medium-Sized Safety Solutions: Maintain Business Resources Case Study, VU, Australia

Case Study

You work as the purchasing officer for a medium-sized Safety Solutions business that sells safety products (Protective Equipment) to its clients as part of its exclusive product range. Your main clients are workers at the nearby mine and you are the only distributor of safety gear in the area. Your organization usually buys the PPE hard hats wholesale from a company based in the nearest capital city 500km away in boxes of 30 units each and resells them at $50.00 per unit with a mark-up of 100%. On average, they sell 10 items of ‘Product A’ and 45 items of ‘Product B’ over a two-week period. The stock control system is configured to keep only one month of stock on hand. Stocks are replenished monthly.

You have been looking at your perpetual stocktaking system and have noticed that ‘Product A’ is often out of stock for periods of up to two weeks. You have also noticed that ‘Product B’ stock levels are often down to less than 5 boxes when re-stocking orders are placed.

Prepare a short report that contains responses to the following points. Make sure that your report is accurate, brief, and written clearly using plain English.

1. What information would you need before advising your supervisor about future purchase requirements?

2. Outline the advice you would give to your supervisor about the situation with the product line.

3. Are there any legislative requirements to take into consideration?

4. What recommendations would you give to improve organizational procedures for record-keeping?

5. Describe the different ways in which your supervisor could present your report contents to relevant stakeholders within the organization.