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Jimbo Limited has decided to centralise its transport function operations. Explain five benefits that the company may derive from making this decision. (10 marks)November 2022
Cost savings: By centralizing the transport function, the company can reduce costs by consolidating transportation services and negotiating better rates with suppliers. This can include reducing the number of transportation providers and negotiating better contracts with existing providers. ImprovedRead more
- Cost savings: By centralizing the transport function, the company can reduce costs by consolidating transportation services and negotiating better rates with suppliers. This can include reducing the number of transportation providers and negotiating better contracts with existing providers.
- Improved efficiency: Centralizing the transport function can lead to improved efficiency by streamlining the transportation process, reducing duplication of effort, and eliminating unnecessary steps. This can include implementing a single transportation management system, which can automate and optimize the transportation process.
- Better coordination: Centralizing the transport function can lead to better coordination between different departments within the company, such as production, sales, and logistics. This can improve the flow of goods and reduce delays and bottlenecks.
- Increased control: Centralizing the transport function can increase the company’s control over transportation activities, allowing for better monitoring and management of transportation performance. This can include implementing key performance indicators (KPIs) to track transportation performance and identify areas for improvement.
- Better tracking: Centralizing the transport function can lead to better tracking of shipments, which can help the company identify problems and improve customer service. This can include implementing a tracking system to monitor the status of shipments in real-time.
- Reduced risks: Centralizing the transport function can lead to reduced risks by consolidating transportation services and reducing the number of transportation providers. This can include implementing a risk management plan to identify potential risks and develop strategies to mitigate them.
- Improved sustainability: Centralizing the transport function can lead to improved sustainability by consolidating transportation services and reducing the number of transportation providers. This can include implementing sustainable transportation practices, such as reducing emissions and reducing fuel consumption.
- Reduced administrative burden: Centralizing the transport function can lead to a reduced administrative burden by eliminating the need for multiple departments to manage transportation activities. This can include automating the transportation process, which can reduce the need for manual processes and paperwork.
- Improved flexibility: Centralizing the transport function can lead to improved flexibility by allowing the company to quickly adapt to changes in transportation demand. This can include implementing a transportation management system that can quickly adjust to changes in demand.
- Improved data analysis: Centralizing the transport function can lead to improved data analysis by collecting and analyzing data on transportation activities across the company. This can include implementing a transportation management system that can collect and analyze data on transportation performance and identify areas for improvement.
See lessOutline five activities that should be carried out at the ordering stage of the purchasing process. (10 marks)November 2022
Preparation of purchase orders: Purchase orders are formal documents that specify the goods or services that an organization is requesting from a supplier. These documents should be prepared carefully and accurately, including the correct item numbers, quantities, and prices. Confirmation of supplieRead more
- Preparation of purchase orders: Purchase orders are formal documents that specify the goods or services that an organization is requesting from a supplier. These documents should be prepared carefully and accurately, including the correct item numbers, quantities, and prices.
- Confirmation of supplier details: Before placing an order, it is important to confirm that the supplier’s contact information and delivery details are correct. This includes verifying their name, address, phone number, and email address.
- Communication with suppliers: It is important to communicate with suppliers to confirm availability, delivery schedules, and any other important details related to the order. This can be done through email, phone, or in-person meetings.
- Review of purchase order: Once the purchase order has been prepared, it should be reviewed by a responsible person to ensure that it is accurate and complete. This includes checking that the quantities, prices, and other details are correct, and that there are no errors in the order.
- Approval of purchase orders: Purchase orders should be approved by a person with the authority to do so, such as a department manager or purchasing manager. This ensures that the purchase order is authorized and that the organization is committed to the purchase.
- Transmission of purchase order: The purchase order should be transmitted to the supplier as soon as possible, either by mail, email, or fax. It is important to confirm that the supplier has received the order and that they understand the details of the order.
- Review of supplier’s acknowledgement: After the supplier has received the purchase order, they will usually send an acknowledgement of the order. It is important to review this acknowledgement to ensure that the supplier has understood the order correctly and that there are no discrepancies.
- Follow-up: After the purchase order has been sent, it is important to follow up with the supplier to ensure that they have received it and to confirm the delivery schedule. This can be done through email, phone, or in-person meetings.
- Record Keeping: It is important to maintain records of all purchase orders, including copies of the purchase order, supplier’s acknowledgement, and any other correspondence. This can help in tracking the status of the order and in resolving any issues that may arise.
- Budget management: The ordering stage should also involve budget management, it is important to ensure that the purchase order does not exceed the budget allocated for that particular item. This will help to avoid overspending and maintain financial control.
See lessExplain five roles that the Ministry of Transport plays in the regulation of the transport sector in Kenya.(10 marks)November 2022
Policy development: The Ministry of Transport is responsible for developing and implementing policies and regulations that govern the transport sector in Kenya. This includes policies related to road safety, vehicle registration and licensing, and public transportation. Regulation and oversight: TheRead more
- Policy development: The Ministry of Transport is responsible for developing and implementing policies and regulations that govern the transport sector in Kenya. This includes policies related to road safety, vehicle registration and licensing, and public transportation.
- Regulation and oversight: The Ministry of Transport is responsible for regulating and overseeing the various forms of transportation in Kenya, including roads, rail, and air transportation. This includes issuing licenses and permits, enforcing safety standards, and ensuring compliance with regulations.
- Infrastructure development: The Ministry of Transport is responsible for planning and implementing infrastructure development projects that support the transport sector in Kenya. This includes the construction and maintenance of roads, highways, airports, and rail lines.
- Promotion of sustainable transport: The Ministry of Transport is also responsible for promoting sustainable transport options, such as public transportation and non-motorized transport, in order to reduce congestion, improve air quality and enhance accessibility.
- Coordination: The Ministry of Transport coordinates with other government agencies and stakeholders to ensure that the transport sector in Kenya operates efficiently and effectively. This includes collaborating with other government agencies, such as the Kenya National Highways Authority and the Kenya Railways Corporation, as well as working with private sector companies, such as bus and taxi operators, to ensure that their activities are in compliance with regulations.
- Safety and security: The Ministry of Transport is responsible for ensuring the safety and security of all forms of transportation in Kenya. This includes implementing and enforcing regulations and guidelines related to road safety, vehicle inspections, and security measures at airports and other transportation hubs.
- Research and statistics: The Ministry of Transport is responsible for conducting research and collecting statistics related to the transport sector in Kenya. This information is used to inform policy development and decision making, as well as to measure the performance of the transport sector.
- Transport planning: The Ministry of Transport is responsible for planning and developing the transport sector in Kenya. This includes identifying transportation needs, developing transportation plans, and prioritizing projects.
- Transport financing: The Ministry of Transport is responsible for identifying financing options for transport projects, such as public-private partnerships, and for negotiating with financiers and other partners.
- Representation: The Ministry of Transport represents Kenya at regional and international meetings related to the transport sector. This includes participating in discussions, negotiations and agreements related to transport and logistics.
See lessThere are certain types of information that the user department in an organization Should provide to the supplies department. Outline five types of such information.(10 marks)November 2022
Production plans: Information on the production plans of the user department, including the quantity and type of products or services that will be produced, the schedule for production, and any changes or updates to these plans. Inventory levels: Information on the current inventory levels of the usRead more
- Production plans: Information on the production plans of the user department, including the quantity and type of products or services that will be produced, the schedule for production, and any changes or updates to these plans.
- Inventory levels: Information on the current inventory levels of the user department, including the quantity and type of products or services that are in stock, the inventory turnover rate, and the reorder point.
- Lead times: Information on the lead times for the products or services that the user department requires, including the time it takes to receive the items from the supplier, the time it takes to produce the items in-house, and the time it takes to deliver the items to the customer.
- Quality requirements: Information on the quality requirements of the user department, including any specific certifications or standards that the products or services must meet, and any testing or inspection requirements.
- Historical data: Historical data on the products or services that the user department has used in the past, including the quantity and type of products or services used, the suppliers used, and the cost of the products or services.
- Budget: Information on the budget allocated for purchasing the products or services that the user department requires, including the total budget, the budget allocated for each type of product or service, and any changes or updates to the budget.
- Delivery schedule: Information on the delivery schedule of the products or services that the user department requires, including the expected delivery date, any changes or updates to the delivery schedule, and any special delivery instructions.
- Capacity: Information on the capacity of the user department, including the number of employees, the production equipment and facilities, and any changes or updates to the capacity.
- Forecast: Information on the forecast of the demand for the products or services that the user department requires, including the expected demand for the next month, next quarter, and next year.
- Feedback: Information on the feedback of the products or services that the user department receives from customers, including the level of customer satisfaction, the number of complaints, and any suggestions for improvement.
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