Purchasing and supply chain management

Topics: Supply chain management, Total quality management, Quality management Pages: 11 (2234 words) Published: October 8, 2014
Purchasing and supply chain management考试要点(

1. P10 Purchasing的概念

The Classic Definition:To buy materials of the right quality , in the right quantity from the right source delivered to the right place at the right time at the right price。

Modern Definition:The process undertaken by the organizational unit that, either as a function or as part of an integrated supply chain, is responsible for procuring or assisting users to procure in the most efficient manner the required supplies at the right time, quality, quantity and price and the management of suppliers, thereby contributing to the competitive advantage of the enterprise and the achievement of its corporate strategy.

2. Why is procurement important to organizations?
1.Purchased content is a significant part of the cost of goods sold (≥ 55%) 2.Move from traditional, adversarial buyer-supplier relations to improve supply chain performance. 3.Purchased content’s impact on product and service quality.

3.p11 Supply Management 概念
Supply management is a strategy approach to planning for acquiring the org.’s current and future needs through effectively manage the supply base, utilizing a process orientation in conjunction with cross-functional team to achieve the ort. Mission.

4.P42 Exhibit 2.1 Purchasing’s Role and Responsibilities: Strategic vs. Tactical(未理解) Overall Goals: Supply Continuity; Manage Purchasing Process; Supply Base Management; Engage Stakeholders; Develop Sourcing Strategies.

5.P73 Type of Purchases
1. Raw Material (lack of processing by the supplier into a newly formed product; are not of equally quality.—— coal, lumber, petroleum) 2. Semifinished Products and Components (Purchased from suppliers required to support an organization’s final goods. —— the tires and wheel bearings for an automobile producer) 3. Finished Products (Require no processing before resale to the end customer. Some companies have excellent design capability but have outsourced all production capability or capacity. ) 4. MRO (Maintenance, Repair, and Operating Items that does not go directly into an organization’s products, however they are essential for running business. Such as spare machine parts, office and computer supplies and cleaning supplies.) 5. Production Support Items (Products need to be packed and shipped. These Items including pallets, tape, bags, wrapping and gule.) 6. Services (All firms rely on external contractors for certain activities or services。Such as a lawn care, sown removal, data entry, consultant) 7. Capital Equipment (Assets intended for use exceeding one year. Standard general equipment without special design requirement, such as computer system and furniture; Designed Specially, such as specialized production machinery, new manufacturing plants, specialize machine tools) 8. Transportation and Third- Party Purchasing (It is a specialized and important type of service buying).

6.Buying center
Roles of People in Organizational Purchasing:(More formal name of all of these is BUYING CENTER) Organisational buying involves multiple persons. We can identify them as: 1. User
2. Gatekeeper
3. Influencer
4. Decider
5. Buyer
Buying center has been defined as the“informal, cross departmental decision unit” in which the primary objectives are the acquisition, importation, and processing of relevant purchasing related information” (Spekman and Stern, 1979, p.56; Wind, 1967a; Webster & Wind, 1972; Lau & Phua, 1999).

7.Purchase situation -PPT
Purchase Situation (五方面)
1. Product type
2. Buy class
3. Purchase importance
4. Purchase complexity and
5. Purchase uncertainty

Buy class
Straight Re-buy
–less complex –Less uncertain –associated with less risk Modified Re-buy
–a bit complex –a bit uncertain –associated with some risk New Buy
–High Risk –High importance –More complex –Greater uncertainty

Purchase importance

8.P89 What the advantages and disadvantages of Policies?
Policy refers to the set of...
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