International Purchaing
TUTORIAL 1: INTRODUCTION TO INTERNATIONAL PURCHASING
Section A : Discussion Questions
1) What are the main objectives of Purchasing in any organization? Please elaborate for each objective. a. Maintain continuity of supply
The organization must ensure the continuous availability of material, supplies and equipments to maintain production schedule or to avoid disruption in production. Purchase products and services at the right quality from the right supplier in the right quantity at the right time and lastly, at the right price.
b. Developing alternative sources of supply
Alternative sources of supply should be exposed for increasing the bargaining power of the buyer and minimizing the cost of purchases. Purchases can be made from alternative sources if a particular supplier fails to supply the required items.
c. To establish and build strong relationships with the suppliers
Select competitive suppliers
Identify new suppliers with high potential and build closer relationships
Improve existing suppliers
Develop new suppliers who are not currently competitive
d. Teamwork
A goal of the purchasing department is to collaborate with key departments and foster teamwork. Understanding the needs and requirements of each unit within the company is an important objective. Attending strategy meetings and helping to provide solutions is a viable business goal. Participating in cross-functional teams is a way of adding more value to the organization.
2) What are the various types of goods and services which organizations may require? Please provide examples of companies which procure for each category. Raw materials, semi-finished products and components, finished products, services, maintenance, repair, and operating supplies (MRO), production support items, capital equipment, machinery and transportation and third-party distributors.
Section B: Sourcing Practices
Research on-line and share in class the sourcing
Section A : Discussion Questions
1) What are the main objectives of Purchasing in any organization? Please elaborate for each objective. a. Maintain continuity of supply
The organization must ensure the continuous availability of material, supplies and equipments to maintain production schedule or to avoid disruption in production. Purchase products and services at the right quality from the right supplier in the right quantity at the right time and lastly, at the right price.
b. Developing alternative sources of supply
Alternative sources of supply should be exposed for increasing the bargaining power of the buyer and minimizing the cost of purchases. Purchases can be made from alternative sources if a particular supplier fails to supply the required items.
c. To establish and build strong relationships with the suppliers
Select competitive suppliers
Identify new suppliers with high potential and build closer relationships
Improve existing suppliers
Develop new suppliers who are not currently competitive
d. Teamwork
A goal of the purchasing department is to collaborate with key departments and foster teamwork. Understanding the needs and requirements of each unit within the company is an important objective. Attending strategy meetings and helping to provide solutions is a viable business goal. Participating in cross-functional teams is a way of adding more value to the organization.
2) What are the various types of goods and services which organizations may require? Please provide examples of companies which procure for each category. Raw materials, semi-finished products and components, finished products, services, maintenance, repair, and operating supplies (MRO), production support items, capital equipment, machinery and transportation and third-party distributors.
Section B: Sourcing Practices
Research on-line and share in class the sourcing