This 4 page paper explains the procurement process at Southwest Airlines and relates that process to a six step process included in the student's textbook. Those steps include: define goods to be procured; Select bidders, prepare bid proposal, evaluate bids and award contract, contract management and close out contract. Bibliography lists 1 source.
Name of Research Paper File: MM12_PGswapr.rtf
Unformatted Sample Text from the Research Paper:
(Southwest Airlines, 2006). This information is provided to "the Purchasing Department, their Internal Customers, and our suppliers and potential suppliers" (Southwest Airlines, 2006). The procurement process will be explained and
related to the six steps process as outlined in Management of Project Procurement. First, it must be noted that Southwest Airlines uses a strategy sourcing method, which includes cross-functional Teams,
identification of total cost drivers and detailed requirements, market research, competitive bidding where appropriate, and continuous improvement in quality and processes" (Southwest Airlines, 2006). 1. Define Goods and Services
to be Procured. The company purchases durable equipment and nondurable supplies and materials. The Purchasing Department is responsible for processing all orders for all supplies, materials and equipment. This includes
capital outlays. The Purchasing Department is also involved in obtaining different services for the company, including aircraft maintenance. 2. Select Bidders and Complete Request for Proposal Only invited
suppliers are invited to participate in any formal sourcing event. These suppliers must follow the procurement procedures as outlined by Southwest. The company actively supports "disadvantaged, small, minority-owned, and
women-owned businesses when we can meet our quality and cost objectives" (Southwest Airlines, 2006). The company expects suppliers to be involved in electronic commerce (Southwest Airlines, 2006). They believe e-commerce
is the key to efficiency and the company "is committed to expanding the use of e-procurement technology" (Southwest Airlines, 2006). 3. Prepare Bid Proposal In open sourcing events, Requests
for Proposals (RFPs) are prepared by the Purchasing Department and published. Suppliers who can meet the needs as spelled out in the RFP are welcome to bid for the contract.
Potential suppliers must be able to meet all criteria; those who cannot meet all criteria are disqualified from the process. Southwest believes in developing long-term relationships with suppliers. Bid proposals