Purchasing and Supply Management Case Study: MRO Sourcing Goes Global
Three Best Practices
INF 336
Date
Three Best Practices Purchasing and supply management is a very important aspect of business. IN the following I will be discussing the article “MRO sourcing goes global. Purchasing” which discusses the maintenance, repair and operations of goods and services for companies with worldwide operations. Many companies that have worldwide operations are taking different tact’s and are equally successful. I will be indentifying three best practices that are found in it. I will also be describing how the organization that I am attached to would improve from these practices . One strategy that is currently being looked at by companies like UTC (United Technologies Corp.) is to use an integrated supply or the outsourcing approach to buying. They do this by hiring intermediaries to take over the buying process, including the provider’s technologies with their own (Susan Avery, 2009). Outsourcing could help my company because this way we could hire third parties to deal with specific departments that are not handled good by us. The outsourced parties would be professionals in certain areas which would allow us to increase productivity and profits. Deploying tactics that are global is another good strategy that any companies are taking. By going global you are able to serve the customer better. My company can benefit from this type of supply strategy because they are a global company which employees thousands with reach to different parts of the worlds, this and outsourcing go hand in hand. Another major strategy that is taking place is to organize purchases by spend categories. One major company that is doing this is Proctor and Gamble, each category is called a spending pool and has an overall strategy and sub strategy from groups of like items that is executed regionally (Susan Avery, 2009). This could help improve the company that I am involved with because we have manufacturing facilities that are spread
INF 336
Date
Three Best Practices Purchasing and supply management is a very important aspect of business. IN the following I will be discussing the article “MRO sourcing goes global. Purchasing” which discusses the maintenance, repair and operations of goods and services for companies with worldwide operations. Many companies that have worldwide operations are taking different tact’s and are equally successful. I will be indentifying three best practices that are found in it. I will also be describing how the organization that I am attached to would improve from these practices . One strategy that is currently being looked at by companies like UTC (United Technologies Corp.) is to use an integrated supply or the outsourcing approach to buying. They do this by hiring intermediaries to take over the buying process, including the provider’s technologies with their own (Susan Avery, 2009). Outsourcing could help my company because this way we could hire third parties to deal with specific departments that are not handled good by us. The outsourced parties would be professionals in certain areas which would allow us to increase productivity and profits. Deploying tactics that are global is another good strategy that any companies are taking. By going global you are able to serve the customer better. My company can benefit from this type of supply strategy because they are a global company which employees thousands with reach to different parts of the worlds, this and outsourcing go hand in hand. Another major strategy that is taking place is to organize purchases by spend categories. One major company that is doing this is Proctor and Gamble, each category is called a spending pool and has an overall strategy and sub strategy from groups of like items that is executed regionally (Susan Avery, 2009). This could help improve the company that I am involved with because we have manufacturing facilities that are spread
References: Susan Avery. (2009, February). MRO sourcing goes global. Purchasing, 138(2), 48-52. Retrieved May 26, 2012, from ProQuest Central. (Document ID: 1649185141).