Financial Evaluation of Vendor Performance: A Study on the Supply Chain Operations of Akij Food & Beverage Ltd

Abstract

In this report, a detailed outline is provided on the internship experience in the Akij Food and Beverage Ltd. (AFBL), at the Procurement Section in the Supply Chain Management Department. This report will be changed to Financial and Operational Evaluation of Vendors at Akij Food and Beverage Ltd. That is why my major is Finance and it demonstrates the impact of procurement activities on financial performances. There are several activities that were part of my internship. I also helped in the evaluation of performance of the vendors, maintained records of purchases, discuss payment terms with Financial Department, and examined the offers made by the suppliers. These exercises allowed me to implement in practice what I hoped to learn in my studies through cost management, working capital management and cost analysis into the real-life supply chain activities. The experience helped me to have a better understanding of how the effectiveness of the vendor pricing system, payment terms and delivery reliability can impact a particular cost of the purchases utilized by the company, its working cash flow and financial outcomes. The report presents the organizational structure of AFBL, conditions of evaluation of the vendors, operational relationship, and financial relationships, challenges being faced by the organization, and the opportunities that the organization could strive on to enhance the performance of the organization. To sum up, this internship has helped me enhance my analytical and decision-making skills and enrich my perception of the strategic component of procurement in cost-efficiency and financial success. The recommendations and analysis contained in this report are intended to assist the AFBL in its vendor evaluation procedure and proceed with further purchasing activities with the emphasis on financial discipline.