Development

Developments in Purchasing and Supply Chain Management and Logistics 1
Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.
Chapter I
Developments in
Purchasing and Supply
Chain Management
and Logistics
The purpose of this chapter is to provide an overview of the differences between
procurement, purchasing, outsourcing, supply, and, sustainable supply chain
management. An overview of the global marketplace and the emerging business
issues of the 21st century will also be provided, along with some guidance on
effective education programmes. Supply chain management a crucial element of
competitive advantage (see, e.g., Figure 1).
Understanding what supply chain management is and what it means is vital.
Procurement, Purchasing,
Outsourcing, Supply Management
and Supply Chain Management
Supply chain management is not merely a fashionable set of words for supply,
purchasing, and procurement! Understanding the differences is crucial to the
development of a world-class culture.
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This chapter appears in the book, Purchasing and Supply Chain Management: Strategies and Realities
by Michael Quyale © 2006, Idea Group Inc.
2 Quayle
Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.
Procurement
Compton and Jessop (1995, p.26) defined procurement as “the obtaining by
various means (e.g., loan, transfer, hire purchase) of supplies and services with
or without consideration.” Van Weele and Rozemeijer (1996, p.22) defined
procurement as including “all activities required in order to obtain the product
from the supplier and get it to the place where it is actually used. It encompasses
the purchasing function, store,... [continues]

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